BELOW THE LONG-TERM AVERAGE;, BUT SECOND PLACE IN NATIONWIDE COMPARISON
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Even though the Munich office market missed its ten-year average as well as the previous year’s figure, it still achieved a very respectable result in a comparison of locations. With a total of around 256,000 sqm, only Frankfurt (366,000 sqm) generated significantly higher take-up, driven by several exceptionally large contracts.
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Another point that favor is that, alongside Frankfurt, Munich is one of the office markets in which a comparatively large number of major lettings over 10,000 sqm were reported. Against the backdrop of the steadily improving but still uncertain economic development, this is a clear indication of companies' confidence in Munich as a business location.
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With Siemens (33,000 sqm; Q1), the owner-occupier deal of Munich tax office (16,000 sqm; Q2) and two further industrial companies (12,300 + 14,000 sqm), four major contracts were concluded in the first six months, which were split equally between the first and second quarter. In terms of the distribution of take-up across the market area, the centre fringe is currently the submarket with the highest take-up due to the three largest deals, accounting for around 43% of the volume. This illustrates that, in addition to the top city locations, the focus of demand is primarily on well-connected locations within the central ring.
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The high proportion of modern space in total take-up (just under 73%) is also noteworthy. This has contributed to the average rent gradually approaching the €30/sqm mark (€28.40/sqm). At the same time, the prime rent has risen to €55.00/sqm and is still under upward pressure.