BNP Paribas Real Estate publishes office market figures for 2025
In an environment that remains challenging, Germany’s office markets confirmed the previous year’s result. Office space take-up in Germany’s most important office strongholds Berlin, Düsseldorf, Essen, Frankfurt, Hamburg, Cologne, Leipzig and Munich amounted to 2.7 million m² for 2025 as a whole, which corresponds to a slight increase of 1.4% in a direct comparison. Market development was characterised above all by major deals that signalled right at the beginning of the year and the significant increase in leasing activity in the medium-sized space segment, although not all markets were able to participate in the good result. This is the result of the analysis by BNP Paribas Real Estate.
The most important results at a glance:
The most important results at a glance:
* Take-up of 2.7 million m² up around 1.4% year-on-year
* Vacancy rises to 8.8 million m² (+16% year-on-year)
* Construction activity falls further to 2.2 million m² (-12% year-on-year)
* Prime rents rise in the top 5 Berlin, Düsseldorf, Frankfurt, Hamburg and Munich
“The German office markets held their own in a remarkable manner in 2025 and, in an unchanged difficult environment, not only confirmed the previous year’s result, but even slightly exceeded it at 2.7 million m². This result can be seen as a success in view of the geopolitical and trade uncertainties that companies were confronted with in the past year, and it impressively underlines the need of decision-makers for spatial change,” explains Marcus Zorn, CEO of BNP Paribas Real Estate Germany. “Regardless of the continuing lack of economic tailwind, they are focused on pursuing their entrepreneurial goals, in which office space certainly plays a central role. High-quality office space in top-connected locations, which are often in close proximity to other market players or clusters, is currently clearly in the focus of demand. The annual figures for 2025 are impressive proof of this: 27% of total take-up is accounted for by office space with first-occupancy quality. In the case of major contracts concluded with more than 10,000 m² of rental space each, the figure is as high as 76%.”
Frankfurt is the strongest office market with benchmark deals, Munich in 2nd place, far ahead of Berlin
With an impressive take-up of 611,000 m², Frankfurt is by far the strongest office market in Germany in 2025, which means that Frankfurt can not only register an above-average result, which is above the 600,000 m² mark for the first time since 2019, but also a significant increase in take-up of 54% compared to the previous year. In particular, the major deals in the first quarter of Commerzbank (73,000 m²) and ING-Diba (32,500 m²), which were supported by BNP Paribas Real Estate, set the tone for the rest of the year. While major contracts were a rarity in previous years, 9 deals with more than 10,000 m² each were successfully crossed the finish line in the first three quarters of the year. In no other market was the number of major contracts so high in 2025.
With take-up of 581,000 m², Munich ranks second. Although there was a moderate decline of 4% compared to the previous year, the overall good development of demand in the Bavarian capital extends across all size segments. The frequency of major deals is also at the previous year’s level. The very strong fourth quarter, which even represents the best result since Q3 2022, has a positive impact.
With such a strong result behind them, Berlin cannot start the new year. Take-up in the German capital in 2025 amounted to only 486,000 m², which is a significant 16% shortfall on the previous year’s result. Above all, the low number of major contracts is weighing on earnings. Take-up for contracts of 5,000 m² or more fell by 71% compared to the previous year. This decline cannot be compensated for by dynamic leasing activity in the small and medium-sized space segment. However, with an increase of almost 17% (up to 5,000 m² of rental space), it is sending a positive signal for Berlin as a start-up location.
Hamburg’s stable office market is once again in fourth place. Without the hoped-for economic tailwind, take-up in 2025 amounted to 401,000 m², only around 5% below the previous year’s level. This result is all the more remarkable because the result for 2024 was largely driven by rare large deals, especially from the public sector, three of which each had a lettable area of more than 20,000 m². The latter is responsible for the largest deals in 2025 in the Cologne office market, which, however, is much more lively than in the previous year, especially in the important mid-range space segment. With take-up of 250,000 m² and a 10% increase in take-up, Cologne then also relegates Düsseldorf to 6th place with 218,000 m² (-1%). While Düsseldorf was able to confirm its previous year’s result at a low level, Leipzig (85,000 m² take-up; -29%) and Essen (68,000 m²; -27%) recorded a sharp decline in take-up.
Vacancy rate rises to 8.8 million m²
The vacancy rate rose by around 16% to 8.8 million m² over the course of the year. The vacancy rate has risen in all office strongholds, albeit at a very different pace. While the vacancy volume in Munich, Frankfurt and Düsseldorf has only risen comparatively moderately, the year-on-year increase is still substantial, especially in Berlin, Cologne and Leipzig, although these come from a significantly lower starting level. Accordingly, the vacancy rate in Leipzig is at a low 5.7% nationwide. Hamburg and Cologne each registered 6.3% and Munich 7.9%. Berlin and Essen are on a par with 8.9%. Frankfurt (12.1%) and Düsseldorf (12.7%) continue to record the highest vacancy rates among the top markets.
The differentiation in vacancy development that has been observed for months has become further entrenched. The vacancy rate is rising above all where property and location qualities do not meet current user requirements. Especially in the case of older existing buildings and in locations that can score neither with good transport connections nor with an attractive environment, the chances of re-letting are decreasing. In order to make outdated properties marketable again, owners will step up repositioning, total renovations or even conversions. At the same time, the shortage of new-build first-occupancy space available at short notice in Germany’s top office locations is intensifying. Currently, a total of just under 68,000 m² is available at short notice in this location and quality segment – with take-up of 215,000 m² in 2025. In Berlin, Düsseldorf, Essen and Cologne, the vacancy rate in the top segment is even well below 5,000 m² each. For all office strongholds, large-volume space requests in the absolute premium segment can currently only be met within the framework of project developments.
Construction activity falls further to 2.2 million m²
Construction activity remains at a very low level and continues to trend downwards in the majority of the cities surveyed. With the exception of Frankfurt and Munich, where new projects have been built in some places, it has fallen year-on-year in the office strongholds. At the end of 2025, around 2.2 million m² are under construction in the major office markets, which corresponds to a decline of around 12%. While the pre-letting rate in Berlin is at a low 17.9%, it is well above 50% in the majority of cities, which is underlined by the fast pace at which new construction space is absorbed by the market. For Frankfurt, Hamburg, Cologne and Essen, pre-letting rates of around 60% are reported.
The key figure for the office market in terms of available space (vacancy rate and still available space under construction) rose by 10% over the course of the year to currently 10.1 million m².
Prime rents rise in the top 5 Berlin, Düsseldorf, Frankfurt, Hamburg and Munich
The significant excess demand in the premium segment has led to a further increase in prime rents in Germany’s top 5 markets of Berlin, Düsseldorf, Frankfurt, Hamburg and Munich. With an increase of 8% or €4.50/m² to currently €58.00/m², Munich is now Germany’s most expensive office market. The prime rent development in Frankfurt is also dynamic, with a noticeable increase of 10% or €5.00/m² to €54.00/m². In Berlin, €47.00/m² (+4%) was called up at the end of the year and in Düsseldorf €46.00/m² (+6%). Hamburg is currently still at €38.00/m² (+6%), but the first deals above €40/m² are also being registered in the Hanseatic city. This new level will solidify in the coming months. Stable prime rents are reported for Cologne (€33.50/m²) and Leipzig (€21.00/m²). The field is completed by Essen with 20.00 €/m² and a noticeable increase of 11 %.
Looking at the year as a whole, the increasing focus on demand for modern office space is particularly visible in the development of the average rent. Over the course of the year, it has risen by 7% on average in the major markets to currently €21.70/m². With the exception of Berlin, where it fell by almost 10% to €26.50/m², it rose in all markets. At €30.20/m², Frankfurt not only recorded the highest level, but also the strongest growth at 28%. Munich ranks with €27.30/m² and an increase of 9%. In Hamburg, the average rent is €22.50/m² and in Düsseldorf €20.00/m². In neighbouring Cologne, it is at a similar level at €19.00/m². Essen (€14.80/m²) and Leipzig (€13.50/m²) follow at a considerable distance.
Prospects
After a year in which the German office markets have shown themselves to be remarkably robust despite continued challenging economic and geopolitical conditions, there are many indications that the trend towards more movement on the user side will continue. Companies are once again taking a more active approach to space decisions – often after a longer analysis phase, but then with rapid implementation. The “Flight to Quality” remains the driving force: modern, ESG-compliant space in very well-connected locations is clearly in focus, while older existing properties outside the core locations in particular continue to come under pressure to adapt.
At the same time, the market environment remains complex, and planning security for companies remains limited in the coming months: External factors such as trade and geopolitical conflicts can continue to cause volatility in the short term. For 2026, however, we expect a moderate upturn in letting activity overall, especially if the filled decision-making pipelines materialize more strongly in the second half of the year – especially in the large-scale segment. On the supply side, market segmentation is likely to continue to increase: repositioning, refurbishments and conversions remain key issues where office space no longer meets the increased quality and location requirements of occupiers, while the structural shortage of top space in premium locations will keep the pressure on prime rents high.
“The momentum on the user side is likely to continue in 2026. We see a clear will to change premises in many companies. This is largely driven by noticeably increased quality and location requirements, as well as the goal of using space in a sustainable and efficient manner. Against this backdrop, we believe that a moderate increase in take-up is realistic for the remainder of the year, with a stronger impetus especially in the second half of the year. On the one hand, the special fund of the federal government should then have an increasing effect and provide more economic tailwind. On the other hand, regardless of this, the ongoing search and decision-making processes are likely to be completed more frequently in these months and lead to an increasing number of new contracts being concluded. At the same time, the supply of premium space available at short notice in the core locations remains extremely scarce. As a consequence, the upward pressure on prime rents is likely to continue and continue to be reflected in rising top levels,” says Marcus Zorn, CEO of BNP Paribas Real Estate Germany, summarizing the outlook.
