The Munich office market demonstrated robust performance in the first three quarters of 2026. Despite a challenging economic environment and ongoing geopolitical uncertainties, take-up reached 485,000 square metres. This analysis by BNP Paribas Real Estate highlights that the Bavarian state capital thus recorded a 19 per cent increase compared to the same period last year.
Following take-up of 172,000 square metres in the first quarter and 182,000 square metres in the second quarter, the third quarter showed a slight reduction in momentum with approximately 131,000 square metres. Michael Morgan, Head of Office at BNP Paribas Real Estate in Munich, emphasised that Munich is therefore among the few German locations with increasing take-up and maintained its position in national comparison, just behind Berlin (541,000 m²) and well ahead of Frankfurt (300,000 m²).
Demand and rent development
Demand in the Munich office market extended across almost all size categories. A significant proportion of the total take-up was attributable to medium-sized deals between 2,000 and 5,000 square metres, which accounted for almost 22 per cent or approximately 106,000 square metres. In addition, large deals exceeding 10,000 square metres contributed significantly to the result with a market share of just under 18 per cent, even though no new deals of this magnitude were registered in the third quarter. The largest lettings remained the E.ON deal for 21,500 square metres and the letting to JetBrains for 21,000 square metres in Tucherpark.
The positive market development was particularly evident in the prime segment: the prime rent increased by nine per cent to EUR 60 per square metre within the last twelve months. The average rent, however, remained stable at EUR 26.90 per square metre.
Sectors, vacancy and outlook
The industrial sector proved to be particularly active in terms of take-up, with approximately 159,000 square metres and a market share of just under 33 per cent. This result was largely based on medium-sized leases and the aforementioned E.ON deal. Information and communication technologies also made a significant contribution, accounting for almost every fourth square metre of take-up and achieving their third-best result in the past ten years.
- —Take-up: 485,000 m² in the first three quarters of 2026.
- —Prime rent: EUR 60/m², an increase of 9% year-on-year.
- —Average rent: EUR 26.90/m², stable.
- —Vacancy rate: 8.1% at 1.88 million m² at the end of September 2026.
The vacancy volume amounted to approximately 1.88 million square metres at the end of September 2026, corresponding to a vacancy rate of 8.1 per cent. A largely sideways development of vacancy has been observed since the second quarter of 2025, fluctuating between 1.82 and 1.88 million square metres during this period. The supply of modern office space, particularly in central locations with first-occupancy quality, remained limited; for example, only about 18,000 square metres were available at short notice in the City sub-market.
Michael Morgan forecasts a realistic take-up of around 620,000 square metres for the end of the year. He expects a stabilisation of vacancy on the supply side, while a further reduction in the available supply of high-quality premium space is anticipated. Upward pressure on prime rent is likely to persist, making further increases beyond the achieved EUR 60 mark probable.
