LOWER TAKE-UP, BUT GOOD QUARTERLY RESULTS AND STRONG MOMENTUM IN THE LARGE-SPACE SEGMENT
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Although the Munich office market did not report an increase in take-up during the first three quarters (-8%), several factors suggest that the overall rental market is performing well despite this. By the end of September, around 408,000 sqm of space had been let, with the last three months achieving the best quarterly result so far at 152,000 sqm.
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In addition to the positive developments throughout the year, other encouraging signs include the second-highest level of take-up compared to the top markets and the increased demand in the large-scale segment. Around one third of the total volume was accounted for by deals over 5,000 sqm, representing less than a quarter and just under 9% of total take-up in the economically challenging years of 2023 and 2024 respectively.
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Since the middle of the year, major contracts have primarily included the lettings of 12,700 sqm by the automotive and mechanical engineering supplier Schaeffler Technologies at the Tomorrow office building in the Werksviertel district. This deal was one of the main factors that contributed to the Cityrand Ost becoming the submarket with the highest take-up in the first three quarters, at 83,300 sqm. It is also encouraging, however, that the city centre ranks second among the office market zones with 58,000 sqm.
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Following an increase at the end of the first half of the year, prime rents have remained stable at €55/sqm in recent months. It should be noted, however, that rents for premium space and locations may occasionally exceed this level in individual cases.