TOP 7 OFFICE MARKETS 1Q2025: Isolated agreements for large office suites boost take-up

At the end of the 1st quarter of 2025 take-up of office space in Germany’s top 7 cities totalled some 713,400 m². This translates into year on year growth of around 16 %. “At the start of the year the top 7 cities presented a mixed picture. In some cities isolated leases for large office suites led to a surge in take-up totals, in other cities there were absolutely no large-scale agreements,” remarks Björn Holzwarth, spokesperson for German Property Partners (GPP).  “In many markets we notice greater activity, especially in the small and medium size categories. However, negative economic forecasts and geopolitical tensions are still factors that create uncertainty and delay many decisions about new premises.”

• Take-up in the top 7 cities developed in various directions at the start of the year. GPP noted the biggest increase – about 112 % to 202,700 m² – in Frankfurt. This also placed the city on the River Main ahead of the others in terms of take-up. The biggest contribution was made by Commerzbank, which took a large amount of space in the “CBT Central Business Tower.” Both Cologne (+103 % to 65,000 m²) and Hamburg (+46 % to 124,000 m²) also posted strong growth. However, take-up dropped in cities such as Stuttgart (-33 % to 40,000 m²) and Berlin (-30 % to 103,000 m²).
• As was to be expected, more empty space was seen in every city. The trend was most visible in Berlin and Cologne, where GPP noted increases of some 43 % and 30 %. Overall in the top 7 cities, the volume of empty space grew by about 25 %; accordingly, the vacancy rate rose by 1.6 percentage points to around 8.1 %.
• Year on year the proportion of owner-occupiers in the top 7 fell by 10 percentage points to around 7 %. The rate actually rose by 16 percentage points in Hamburg, but that was essentially due to the construction start of a building that Körber Technologies will own and occupy; in most other cities owner-occupiers were less in evidence. 
• Average rent levels in the top 7 locations changed and diversified. GPP noted an appreciable increase in Cologne (+20 % to €22.30/m²/month) as a result of specific leases for large premises. Similarly large rises were posted in Frankfurt (+15 % to € 28.80/m²/month) and Stuttgart (+13 % to € 21.40/m²/month). The highest average rent was charged in Berlin at € 28.95/m²/month.
• In all cities the premium rents remained stable or grew slightly. The highest growth rates, about 6 %, were posted in Cologne (+6 % to €35.00/m²/month), Frankfurt (+6 % to €50.00/m²/month) and Stuttgart (+6 % to €37.00/m²/month). At €53.30/m²/month Munich remained the city where the highest premium rent is charged, followed by Frankfurt.

“Market developments during the further course of the year will depend very much on changes in the overall economic situation,” predicts Holzwarth. “In some cities the underlying mood is more positive than before and further agreements for large office suites are in the offing. However, until the economy becomes more evidently stable, thus enabling firms to plan for the longer term, many will remain hesitant about renting new space. We expect to see a low level increase in market activity during the rest of the year. The result for Germany’s top 7 cities is likely to stay below the long-term averages.”

The GPP commercial property network consists of Grossmann & Berger Immobilien, Anteon Immobilien, GREIF & CONTZEN Immobilien, blackolive and E & G Immobilien.