TAKE-UP BELOW PREVIOUS YEAR'S LEVEL
In the first three quarters of 2023, the Munich office market was unable to match the previous year's good performance. At 324,000 m², take-up is around 45% lower than last year. The long-term average was also missed by a good 37%. Nevertheless, this result places Munich once again in 2nd place among the most important German office locations; behind Berlin (426,000 m²) and ahead of Hamburg (321,000 m²). The weaker overall economic development in recent months, sparked by the ongoing Ukraine war, inflation and rising interest rates, is contributing to a more cautious attitude on the part of many companies, which in turn is reflected in the Munich office market. As a result, only 87,000 m² of take-up was registered in the third quarter - a very low figure for the Munich market. No major lettings above 5,000 m² were recorded in the last three months. Thus, the largest contract concluded so far this year remains the owner-occupier deal by Deutscher Gewerkschaftsbund (DGB) of a good 10,500 m² in Centre Fringe West.