In the third quarter of 2026, the Munich office letting market reached a take-up of approximately 138,000 sq m. This figure was almost on par with the corresponding quarter of the previous year, when 140,800 sq m were registered. For the first nine months of 2026, cumulative take-up amounted to about 467,200 sq m, representing an increase of around 16 percent compared to the same period last year. Matthias Hofmann, Head of Regional Branch Management Germany and Head of Office Agency Munich at Cushman & Wakefield, noted that market activity remained high in the third quarter. Companies are now scrutinising their space requirements more closely and making more selective location decisions, which leads to broad demand across various size categories.
Although several larger contract completions were recorded in the third quarter, numerous small and medium-sized lettings largely shaped market activity. It is particularly noteworthy that the take-up for the first nine months was significantly above the previous year's level. The quarterly take-up of 138,000 sq m in Q3 2026 was approximately 8 percent below the ten-year average in a long-term comparison. However, with 190 completions, market activity was higher than in the previous quarter, which underscores the continued breadth of demand in the Munich office letting market. The lower take-up compared to the second quarter, which was still characterised by large-volume user decisions, primarily resulted from smaller average deal sizes.
The predominant share of take-up came from lettings, which accounted for over 90 percent of the total volume at around 127,000 sq m. Owner-occupiers contributed approximately 11,000 sq m to the quarterly result, remaining largely at the level of the previous year's quarter. The largest completion of the third quarter was the expansion of Rohde & Schwarz in Mühldorfstraße, covering approximately 8,500 sq m, which was an owner-occupier transaction as part of a planned site development. Other significant completions included the letting to the commercial law firm Heuking for around 6,000 sq m in Maffeistraße 8, brokered by Cushman & Wakefield, and the letting to Greenpeak Partners in Amalienstraße 33 for around 5,100 sq m.
Sectors and Submarkets: Balanced Demand
For the first nine months of the year, take-up totalled 467,200 sq m. This result is 16 percent above the prior-year period and 5 percent above the five-year average, but remains 10 percent below the ten-year average, reinforcing robust demand in the Munich office letting market. The industrial, transport, and logistics sector represented the most active user group, accounting for 24 percent of total take-up, followed by the technology, media, and telecommunications (TMT) sector and consulting firms, each with a 17 percent market share. Companies from the finance and insurance sector were also above-average in their activity, accounting for around 11 percent of take-up. This sectoral distribution demonstrates the broad basis of demand in the third quarter.
At the submarket level, demand in the third quarter was more differentiated than in the previous quarter. The Inner City East recorded the highest take-up with approximately 22,500 sq m, or 16 percent, significantly influenced by the expansion of Rohde & Schwarz. Closely behind was the Inner City West with 21,800 sq m and also a 16 percent market share, where among others, the letting to HMU Health and Medical University in the Hopfenpost Palais for around 3,400 sq m was one of the larger deals. Other high-take-up submarkets included the Northern Outskirts with 10 percent, as well as the Inner City North, the Old Town, and the City West Southwest, each accounting for around 8 percent of take-up. Hofmann noted that demand continues to concentrate on established and easily accessible office locations, while the distribution across several submarkets indicates needs-based location decisions.
Rent Development: Continuing Upward Trend
The prime rent continued its upward trend in the third quarter of 2026, reaching EUR 58.00/sq m/month. This represents an increase of approximately 5.5 percent compared to the same quarter last year (EUR 55.00/sq m/month). The average rent also developed positively, standing at EUR 28.05/sq m/month at the end of the third quarter, an increase of approximately 7.9 percent compared to the previous year's quarter (EUR 26.00/sq m/month). Rent development is particularly driven by demand for modern and high-quality office spaces in central and well-connected locations. Broader demand across various quality segments in the third quarter underscores the increasing differentiation of the Munich office letting market.
