The office market in the Rhine-Neckar metropolitan region recorded a total take-up of approximately 30,000 m² in the first half of 2026. This figure, which includes the cities of Mannheim, Heidelberg, and Ludwigshafen, represents a slight decrease compared to the 33,900 m² from the same period last year. Mannheim contributed the largest share with 12,000 m², followed by Ludwigshafen with 11,000 m² and Heidelberg with 7,000 m².
A significant portion of this take-up was attributable to the public sector. In Ludwigshafen, the city administration secured a large lease of approximately 10,000 m² in the “Palatineo” project at Berliner Platz. Several decentralised administrative units are to be consolidated into a new city hall there. Public institutions were also significantly involved in market activity in Mannheim, notably through the Mannheim District Court's lease of 5,750 m² in the energetically refurbished office building at Augustaanlage 33.
Public Sector Influence and Rental Price Development
Konstantinos Krikelis, Metro Lead Office Leasing & Investment at JLL Rhine-Neckar, highlighted that the public sector is currently driving the office market in the Rhine-Neckar region. He noted that the state of Baden-Württemberg had already generated significant take-up through the Duale Hochschule in Mannheim in the previous year. He observes that occupiers are increasingly focusing on value for money when searching for space.
The supply of space outside central business districts has increased, which has put greater pressure on landlords. There is currently only low demand for high-priced premises. Occupiers are more willing to compromise on location to avoid excessive rents. This development has shifted the market in favour of tenants. This is affecting the entire region and leading to stagnation in prime rents.
Prime rents in the region have consequently been stagnating for some time. They currently stand at 22.50 EUR/m², which primarily applies to prime locations in Mannheim. In Heidelberg, up to 19.50 EUR/m² is realistic, while in Ludwigshafen, a maximum of 14 EUR/m² is achieved. Krikelis does not expect a short- to medium-term increase in prime rents given the current market situation. Well-connected submarkets with modern premises are therefore particularly sought after.
- —In Mannheim, the Glücksteinquartier and the areas along Augustaanlage are among the preferred locations.
- —In Heidelberg, all areas around the main railway station, especially Bahnstadt and the Heidelberg Innovation Park, are in high demand.
