Berlin and Munich drive leasing activity with strong take-up growth – Prime rents continue to rise despite persistently elevated vacancy levels
Cushman & Wakefield recorded office take-up of 651,100 sq m across Germany’s five key office markets (Berlin, Düsseldorf, Frankfurt, Hamburg and Munich) in the second quarter of 2026. Compared with the same quarter last year (Q2 2025: 572,900 sq m), this represents an increase of approximately 14%. The growth was driven primarily by the strong performances recorded in Berlin and Munich.
On a half-year basis, the Top Five markets remained broadly stable: total take-up amounted to 1.153 million sq m, just 1% below the level recorded in the same period of the previous year (H1 2025: 1.166 million sq m).
Economic Environment: Occupiers Remain Selective in Their Space Decisions
Mario Herbst, Head of Leasing and Tenant Representation Germany at Cushman & Wakefield, comments:
“The economic environment continues to be characterised by cautious corporate planning. Occupiers remain highly selective, carefully evaluating real estate decisions and increasingly linking them to long-term location strategies and efficiency objectives.”
Hanjo Theiss, Head of Office Agency & Office Sector Germany at Cushman & Wakefield, adds with regard to current occupier behaviour and preferences:
“Companies continue to make selective decisions, yet they are willing to proceed with larger requirements when the right opportunities arise. Demand remains focused on modern, efficient office space in central locations with strong transport connectivity. Flexibility, quality of fit-out, ESG performance and long-term cost efficiency remain key priorities for prospective tenants and occupiers.”
Office Take-Up: Berlin and Munich Drive Q2 Activity, While Frankfurt Reflects a Statistical Base Effect
In the second quarter of 2026, the German capitals on the Spree and the Isar rivers accounted for a combined take-up volume of 419,000 sq m (Berlin: 229,000 sq m, up 66% year-on-year; Munich: 190,000 sq m, up 55% compared with Q2 2025). Together, they represented nearly two-thirds (64%) of total Top Five office take-up during the quarter.
The remaining markets delivered more subdued performances. Düsseldorf recorded 61,400 sq m (down 6% year-on-year) and therefore remained broadly stable, while Hamburg achieved 93,000 sq m, a moderate decline of 10% compared with Q2 2025.
In Frankfurt, office take-up totalled 78,000 sq m in the second quarter of 2026, bringing the first-half total to 145,200 sq m. The decline of more than 57% compared with the first six months of 2025 is largely attributable to a particularly strong base effect, as several large-scale transactions had significantly boosted market activity during the previous year.
Among the largest transactions of Q2 2026 were KPMG’s lease of more than 17,300 sq m at One Plaza in Düsseldorf and Deutsche Bank’s lease of approximately 7,600 sq m at Emporio in Hamburg.
In Berlin, JetBrains’ lease of approximately 19,000 sq m at Hainwerk provided a strong signal for the large-scale occupier market, particularly within the highly active ICT (Information and Communications Technology) sector.
Munich also saw a significant commitment to premium office space with the commencement of construction on Apple’s owner-occupied project on Seidlstraße, comprising approximately 30,000 sq m. The development underlines continued demand for high-quality office accommodation from technology-sector occupiers.
Rising Prime Rents Reflect Resilient Demand for High-Quality Space – Vacancy Pressure Remains Elevated
Prime headline rents increased year-on-year across all five major office markets, highlighting the resilience of the premium segment despite varying levels of leasing activity.
At €57.00 per sq m per month, Munich remains the most expensive office market among the Top Five, representing an annual increase of 3.6%. Frankfurt follows at €53.00 per sq m (+3.6% year-on-year), while Berlin recorded the strongest rental growth, reaching €47.00 per sq m, up 4.4% from the end of Q2 2025.
Düsseldorf registered a modest increase of 2.2% to €46.00 per sq m, maintaining its high prime rental level. Hamburg ranked fifth among the Top Five markets but recorded the second-highest annual increase at 4.2%, bringing prime rents to €37.50 per sq m.
The continued rise in prime rents demonstrates that high-quality space in attractive locations remains in demand. At the same time, increasing vacancy levels highlight the growing divergence within the office market. On the one hand, supply of Grade A and prime space remains limited; on the other, structural vacancy continues to accumulate, often in buildings lacking appropriate refurbishment or repositioning measures. As a result, Grade B and particularly Grade C office stock—especially in peripheral locations—is becoming increasingly difficult to lease without targeted revitalisation.
By the end of Q2 2026, total vacant office space across the Top Five markets stood at 7.786 million sq m, representing an increase of approximately 11% year-on-year. The aggregated vacancy rate reached 9.8%, approaching the 10% threshold. Frankfurt and Düsseldorf have already exceeded this level, with vacancy rates of 12.1% and 11.4%, respectively.
While vacancy volumes continue to rise across all five markets, prime rents are simultaneously increasing in every location.
Hanjo Theiss comments:
“In our view, this development provides clear evidence of the ongoing bifurcation of the market: high-quality space remains sought after, while older and less efficient stock is contributing to further supply-side pressure.”
Recovery Remains Selective Rather Than Broad-Based
Hanjo Theiss concludes:
“According to Cushman & Wakefield’s forecasts, the second half of 2026 is likely to remain characterised by selective demand. We expect positive impulses from individual markets and, as observed for some time now, from isolated large-scale transactions. However, the overall market is expected to remain highly differentiated.”
