The office letting market in Hamburg remained subdued in the third quarter of 2026. The recorded take-up reached only around 84,000 square metres, which represents a below-average quarterly result. Overall, the take-up in the first nine months of the year amounted to approximately 270,000 square metres of office space, including owner-occupied areas. This implies a reduction in take-up of 13.7 percent compared to the same period last year. The observed restraint among market participants is significant.
Nils Larsen, Head of Office Letting Hamburg at Grossmann & Berger Immobilien, a member of German Property Partners (GPP), pointed out that the economic downturn continues to shape the Hamburg office market. He explained that many companies are scrutinising their space decisions with increased intensity, leading to extended letting processes. Simultaneously, the option of extending existing lease agreements, instead of relocating, is gaining importance as a strategic alternative.
Development of Supply and Future Challenges
Contrary to the subdued demand, the available office space continued to expand. At the end of the third quarter of 2026, the available space amounted to around 1.05 million square metres, representing an increase of 11.2 percent compared to the previous year. Although the growth in supply slightly decelerated compared to the previous quarter, a further increase in the vacancy rate is expected in the coming months. This development presents new challenges for the market.
Larsen highlighted that with the increasing supply of space, the question of the future use of older office buildings is gaining relevance, as these often no longer meet the current requirements of many users. He emphasised that investments in building quality and amenities will become increasingly important, as will the development of viable concepts for alternative uses. The transformation of existing stock will thus become a crucial factor for market attractiveness.
Outlook for the Fourth Quarter and Market Development
For the final quarter of the year, a slight upturn in letting activity is expected. However, Grossmann & Berger forecasts an annual office take-up of less than 400,000 square metres for the full year 2026. A sustainable recovery of the market is primarily dependent on a more stable overall economic development. Larsen expressed the expectation that a gradual improvement in economic conditions will prospectively lead to a strengthening of demand for modern, high-quality, and well-connected office spaces.
