Office market Munich 4Q/2021: Take-up 16 % higher than in the previous year
MUNICH / 05.01.2022
As of 31 December 2021 the take-up figure for Munich’s office market was approximately 600 000 m². Some 30 000 m² of this figure was generated by owner-occupiers. The previous year’s results, which were strongly influenced by the pandemic, were thus exceeded by around 16 %.
The by far largest deal was the one concluded with the German Patent and Trademark Office for approximately 45 000 m² space at the “Pandion Soul” building in the workshop district behind Munich’s Ostbahnhof train station. A number of larger transactions were also concluded for properties in the city’s central business district in the fourth quarter. These included the 9 600 m² space leased by the Max Planck Society in the former ‘Karstadt Sport’ department store at Neuhauser Strasse 20 and Novartis’ contract for 9 350 m² in the Alte Akademie building.
As of 31 December 2021 there was a total of some 1 million m² vacant office space available at short notice. With a total available area of approximately 23 million m² this represents a vacancy rate of 4.3 %, a year-on-year increase of just under 2 %.
A total of some 670 000 m² of newly constructed space will come onto the market in 2022 and 2023, of which around 46 % has already been leased or will be used by the owners.
The prime rent as of 31 December 2021 was EUR 42.00/m², representing an increase of 9 % over the same period in the previous year while the average rent rose by 10 % to EUR 24.50/m².