BNP Paribas Real Estate publishes office market figures for the 4th quarter of 2025
The Munich office market was able to almost confirm its previous year’s level with a total balance of around 581,000 m². Overall, however, there was a slight decline of around 4% compared with take-up in 2024 (around 606,000 m²). Looking behind the figures, the continuous upturn in take-up over the course of the year stands out: at around 173,000 m², the best quarterly result since Q3 2022 was even achieved at the end of the year. This is the result of the analysis by BNP Paribas Real Estate.
“The dynamic letting activity of the last three months is also underlined by the fact that almost a third of all recorded contracts were concluded in the period between October and the end of December 2025,” explains Michael Morgan, Munich branch manager of BNP Paribas Real Estate GmbH. It is also pleasing that the good development in demand extends across all size segments: both the small (up to 1,000 m²: 37.5%), as well as in the medium (1,001 – 5,000 m²: 33.0%) and the large (from 5,000 m²: 29.5%) market segments.
Demand continues to focus primarily on the city of Munich (84,500 m²), which is the office market zone with the highest take-up after the eastern edge of the city (115,300 m²). Accordingly, it is not surprising that the pressure on rents in the top properties and locations remains high and, in combination with the low vacancy rate (City with only 3.4%) in Q4, has led to a renewed increase in the premium segment (€58.00/m²). In some cases, contracts even exceed this top level, which is also nationwide.
Industrial administrations remain top industries
The traditionally strong administrations of industrial companies were able to record four of the five largest deals in the first three quarters and an overall dynamic market activity in the small and medium-sized segments. Accordingly, a high share of just under 30% and a good 173,000 m² is accounted for by the industry leader. Consulting firms (almost 15%), ICT technologies (around 13%) and the healthcare sector (a good 11%) were also active, thus ensuring a diversified mix of sectors in the contracts recorded.
In terms of vacancy development, the cyclical peak in the Munich market area now seems to have almost been reached. Despite all this, a further slight year-on-year increase of around 1.82 million m² was reported (+8% compared to Q4 2024). At the same time, modern vacancy space has fallen by around 10% since October due to the good letting activity, so that only just under 45% of the total volume now corresponds to a higher-quality standard of furnishing (49% in 2024 as a whole). The vacancy rates continue to range widely, from 1.8% on the northern edge of the city to 10.2% in the southern urban area. At 7.9%, the aggregate vacancy rate across all sub-markets is currently back below the 8% mark (compared to 8.1% in Q3 2025).
Prospects
The Munich office market can start 2026 with confidence: The very good final quarter, second place in the location comparison and the broad distribution of volume across the size classes are clear indicators that speak for the multi-layered demand impulses in the Bavarian capital.
Even though the shift in letting activity in favour of modernly equipped and best-connected office properties continues to be noticeable in the city and on the outskirts of the city with a share of 52%, the focus is also shifting somewhat more into focus on secondary locations. At around 27% of take-up, the office market zones located here also make a significant contribution to earnings. On the supply side, the individual consideration of the various sub-markets is still more meaningful than the aggregate vacancy rate of the overall market. However, the fact that 7.9% is currently being reached again, while it was already 8.1% in the course of the year, can be seen as an indication of the slowly beginning sideways movement.
“Meanwhile, prime rents continue to rise, and are likely to increase again in 2026 due to the high excess demand in the absolute premium segment. Against this backdrop, it can be assumed that the €60/m² mark will be reached or even exceeded in the next 12 months,” predicts Michael Morgan.
