The German retail property leasing market experienced a significant increase in activity in the third quarter of 2026. Take-up reached 123,000 sqm, representing a clear rise compared to the previous quarter (94,400 sqm) and also slightly above the average quarterly take-up for the years 2021 to 2025 (115,200 sqm). Cumulatively over the first three quarters of 2026, take-up totalled 326,300 sqm. Although this figure remains below the record level of the previous year, the third quarter indicates a re-accelerating leasing momentum. The number of registered transactions remained stable at 167 compared to the previous quarter (168), with the average leased area per transaction increasing by approximately 31 per cent. The ten leading German retail metropolises accounted for 50 per cent of all transactions, and their share of take-up rose from 41 per cent in the second quarter to 48 per cent in the third quarter, demonstrating the continued concentration of leasing activity in these centres.
International Concepts Dominate Demand and Leading Locations
International retail concepts continue to significantly shape the German retail leasing market. In the third quarter, international players accounted for 67 per cent of take-up and 57 per cent of transactions. Aniko Korsos, Head of Retail Leasing JLL Germany, explained that international brands form the backbone of the leasing market. She emphasised the relevance of space layout, as global retailers specifically seek larger flagship units to fully present their brand experience. This underscores Germany's status as a key market for global expansion strategies. Berlin maintained its position as the leading retail location in the first three quarters of 2026 with a take-up of approximately 50,900 sqm, which corresponds to about one-third of the total leasing volume of the ten metropolises. Despite a seven per cent decline compared to the same period last year, Berlin is above its long-term average of 46,200 sqm (2021-2025).
Other relevant locations include Hamburg with 17,100 sqm and Frankfurt am Main with 15,500 sqm, followed by Dusseldorf (13,600 sqm) and Cologne (12,700 sqm). Leipzig recorded a strong result with 12,600 sqm, significantly exceeding both the previous year's figure and the long-term average. Munich also reached 12,600 sqm, just below the previous year's level. While some markets experienced declining take-up, Leipzig (+138 per cent), Cologne (+37 per cent), and Hanover (+30 per cent) showed particularly dynamic development compared to the same period last year. In contrast, Nuremberg saw a significantly weaker result with 3,000 sqm (-72 per cent), along with noticeable declines in Hamburg (-36 per cent) and Stuttgart (-28 per cent). Ms Korsos explained that the pronounced disparity between locations illustrates the volatility of markets outside the three largest metropolises. She stated that in cities like Leipzig, individual large-scale lettings can significantly influence a quarter's overall result, while conversely, the absence of such deals leads to significant declines. She concluded that the current picture is more the result of targeted individual transactions than a widespread trend.
Sector Focus and Rent Development
The textile trade accounted for more than 28 per cent of the total leasing volume in the first three quarters of 2026, with a take-up of approximately 92,900 sqm. Companies such as Inditex, New Yorker, and Jack & Jones contributed to market dynamics through several lettings, confirming the leading role of the apparel sector. Gastronomy/Food followed in second place with a space volume of approximately 78,200 sqm, corresponding to almost 24 per cent. This included expanding concepts such as Go Asia, Rewe, and Edeka. Prime rents in the third quarter of 2026 remained stable in the majority of the ten leading retail locations. Munich maintained its position as the most expensive location at 340 Euros/sqm/month. Frankfurt am Main recorded 280 Euros, Hamburg and Stuttgart each 250 Euros. Cologne was at 225 Euros, Hanover at 170 Euros, and Leipzig at 110 Euros.
Year-on-year, three locations saw changes: In Berlin, prime rent decreased by 3.4 per cent to 280 Euros/sqm/month, while Dusseldorf increased by 3.6 per cent to 290 Euros. Nuremberg experienced the most significant decline with a minus of 15.4 per cent to 110 Euros, placing the city alongside Leipzig as having the lowest prime rent among the metropolises. In the other 56 cities of all sizes examined by JLL, prime rents also remained unchanged. Across all 66 cities surveyed in Germany, the average rent level remained almost constant. For the fourth quarter of 2026, broad stability is forecast, with eight of the ten leading retail locations expected to maintain their current prime rents. Only in Stuttgart could the rent level slightly decrease to 240 Euros.
