TOP 7 OFFICE MARKETS 3Q2025: Isolated agreements for large office suites lead to slightly improved take-up figures

At the end of the 3rd quarter of 2025 take-up of office space in Germany’s top 7 markets totalled some 2m square metres – a modest 5 % increase year on year. Nevertheless, this result fell below the long-term average. “The market remains dominated by rentals of small to mid-sized suites, with the addition of a few large-volume agreements,” remarks Björn Holzwarth, spokesperson for German Property Partners (GPP). “In many cities we receive several enquiries for large office suites. However, the ongoing economic and geopolitical uncertainties still cause many potential tenants to hesitate, preferring to wait until the business environment stabilizes. Basically, the “flight to quality” remains an ongoing trend, but in many cases there is a shortage of suitable, modern, sustainable space in central locations.”

• Take-up of space in the top 7 locations varied from city to city: the biggest increase – about 77 % to 480,800 m² – was noted in Frankfurt. This is essentially because several contracts that were already being discussed in 2024 were signed this year. One contribution to this result was the large-volume lease signed by Commerzbank in the 1st quarter. On the other hand, declining take-up was noted in Stuttgart (-21 % to 119,000 m²), Berlin (-14 % to 360,000 m²) and Munich (-9 % to 397,000 m²).
  
  
• All seven cities posted an increase in empty space by at least 20 %. GPP registered the greatest year on year increase in Berlin (+42 % to 1.75m²), followed by Hamburg (+30 % to 946,000 m²) and Munich (+27 % to 2,162,000 m²). Overall, unoccupied office space in the top 7 cities climbed by 28 % to 8.37m m², and their vacancy rate grew by 1.9 percentage points to 8.7 %.
  
  
• At 8 %, the percentage of owner-occupiers in the top 7 cities was practically unchanged (Q3 2024: 8.1 %). Whereas most of the cities saw vacancy rates rise or fall by between 1 and 4 percentage points, Cologne posted a considerable decline of 34 percentage points. In Munich the rate rose by 11 %.
  
  
• Likewise, average rents in the top 7 cities presented a mixed picture: Hamburg, Berlin, Düsseldorf, Stuttgart and Munich posted upward or downward movements of between 2 and 9 %. In Frankfurt the increase was more substantial (+25 % to €31.20/m²/month). Here companies paid higher average rents than in any other top 7 city. Cologne also posted a notable increase, with rents growing by some 17 % to € 21.70/m²/month.
  
  
• Premium rents grew in most cities, in Hamburg and Berlin they remained largely unchanged year on year. GPP recorded the biggest increase in Düsseldorf, a 10 % rise to €47.10/m²/month. The highest premium rents are paid for Munich properties (€55.50/m²/month), followed by Frankfurt (€52.00/m²/month).

In conclusion, Holzwarth says that, “Overall, we take an optimistic view of the last quarter of this year. We are confident that letting activity will remain brisk in the small to mid-sized segment. And some large-volume agreements could be concluded in 2025. We expect the year to close with a slightly higher top 7 result than in 2024. However, in the medium term, how the office-letting business develops will still very much depend on whether the new Federal government implements the measures it has announced to stabilize the economy as a whole. A sustained market revival can only be expected if companies are able to plan for the future with confidence.”

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