SUBDUED START TO THE YEAR
The Munich office market got off to a subdued start in the new year. The economic slowdown and prevailing uncertainties about further economic development have led many companies to slow down the pace of planned relocations during the winter months or even to temporarily put them on hold. Accordingly, the take-up amounts to comparatively moderate 120,000 sqm and is about 37% below the previous year's figure. The long-term average of 179,000 sqm was thus clearly undercut. In particular, the lack of large deals is very noticeable. By the end of March, no contract above 10,000 sqm had been signed, and only two contracts were registered for the size category between 5,000 and 10,000 sqm. However, the letting activity for spaces between 1,000 and 5,000 sqm was positive, recording an above-average market momentum.