Germany's five leading office markets – Berlin, Düsseldorf, Frankfurt, Hamburg and Munich – registered a cumulative take-up of approximately 1.16 million square metres in the first half of 2026. This represents a slight decline of one per cent compared to the same period last year. Newmark's current "Market Monitor H1 2026" reveals a heterogeneous development within these markets, with individual locations achieving significant growth rates, while others showed a downward trend.
Berlin led the top 5 markets with a take-up of around 373,000 square metres, representing an increase of 54 per cent compared to H1 2025. Munich followed with almost 350,000 square metres and a plus of 33 per cent. Both markets benefited from several large-volume lettings, which significantly contributed to the results. In contrast, Frankfurt recorded a take-up of approximately 158,000 square metres, a decline of 55 per cent compared to the previous year, due to the absence of comparable large deals. Hamburg reached 187,000 square metres, a minus of 13 per cent, and Düsseldorf remained the smallest of the markets under review with around 98,000 square metres. Helge Zahrnt MRICS, Head of Research Germany at Newmark, stated that Berlin and Munich benefited from large lettings and grew significantly, while other markets were still looking for new momentum. Nathalie Wegner, Head of Office Leasing Berlin at Newmark, highlighted that despite the challenging economic situation, there was a lot of activity in the market as companies optimised their space requirements and specifically improved location and space qualities.
Vacancy in the five largest office markets accumulated to 7.29 million square metres by the end of the second quarter. The vacancy rate increased by 0.7 percentage points within a year to 9.3 per cent. Frankfurt recorded the highest rate with 12.1 per cent, followed by Düsseldorf with 11.9 per cent. Hamburg had the lowest vacancy rate with 6.8 per cent.
Parallel to the increase in vacancy, prices for high-quality office space in central locations rose. The average prime rent across all five markets increased by 6.9 per cent year-on-year to EUR 49.60 per square metre. Munich reached a prime rent of EUR 60.00, Frankfurt EUR 54.00, Berlin EUR 48.00, Düsseldorf EUR 46.00, and Hamburg EUR 40.00. The average rent across the markets, however, only increased by 0.9 per cent to EUR 25.45 per square metre. The highest rent, the most expensive new lettings, exceeded the achievable prime rent in most markets.
Modern, energy-efficient and well-equipped spaces in sought-after locations remain scarce, while older existing buildings are increasingly coming under pressure unless modernisations or attractive rental conditions and services are offered. A key factor here is the increased construction costs; in Frankfurt, costs for new office buildings in 2025 were approximately 71 per cent above the 2016 level, while prime rents rose by 35 per cent over the same period. Newmark forecasts a partial closing of this gap in the coming years, with Lukas Kasperczyk, Head of Office Leasing Frankfurt at Newmark, expecting significant rent increases for prime spaces in Frankfurt's CBD. Prime rents are likely to move towards the EUR 60.00 mark, with top rents exceeding the EUR 70.00 mark.
The demand structure also varies significantly. While technology and media-savvy companies act as drivers in many markets, Munich records strong demand from high-growth sectors such as robotics, defence, semiconductors, and life sciences. Matthias Hausch, Head of Office Leasing Munich at Newmark, observes an increased user willingness to compromise on location if spaces are modern and service-oriented, with properties featuring a campus character and high amenity value being particularly sought after. In Berlin, owners are increasingly considering repurposing older existing buildings, for example into co-living concepts, serviced apartments, or fitness offerings. Where repurposing is not feasible, modernisations, flexible rental models, and additional services are gaining importance.
For the full year 2026, Newmark expects a largely stable turnover level in the top 5 markets. The extension of the recovery beyond Berlin and Munich will largely depend on larger lettings and the availability of modern spaces. For owners of older properties, investments in quality, flexible usage concepts, and targeted incentives remain increasingly relevant.
