GERMANY'S OFFICE MARKETS STAY ON COURSE: TAKE-UP 9 % ABOVE LAST YEAR'S LEVEL
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Germany's office markets Berlin, Cologne, Düsseldorf, Essen, Frankfurt, Hamburg, Leipzig and Munich started the second half of the year with an impressive total take-up of 1.37 million sqm. The half-year result is thus 9% above the previous year's level. However, the second quarter was unable to match the strong start to the year with its signaling major deals. The market is showing signs of recovery across the board, and the lively market momentum in small contracts that has been evident for months is now increasingly being supplemented by contracts in the important medium-sized segment. Meanwhile, large contracts continue to make the difference in all locations.
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The Frankfurt office market is once again by far Germany's most dynamic market at the half-year with take-up of 366,000 sqm. Frankfurt has thus recorded its best half-year result since 2001. An already outstanding first quarter, in which lettings by Commerzbank (73,000 sqm) and ING-DiBa (32,000 sqm) were among the clear market drivers, was followed by a second quarter that was still above average (162,000 sqm). In the current year, large deals have also been registered at a more frequent rate in Munich, which ranks in second place in the nationwide comparison with 256,000 sqm, although it fell short of the previous year's stronger result by just under 13%. The gap to the previous year's result in Berlin is similar at 247,000 sqm (-12%), although the market dynamics in Berlin differ significantly from those in Frankfurt and Munich. In the current market environment, Berlin is benefiting from very lively letting activity in the small and medium-sized segment, while the typical large-scale contracts, particularly for public administration, are still completely absent in 2025.