In the first quarter of 2026, take-up of 82,000 m² was recorded for the Frankfurt office space market. Not entirely unexpectedly, the market is unable to match the brilliant record sales at the start of 2025 and misses it by almost 60%. The long-term average also remains unreached for the moment, but this is not unusual for the Frankfurt market at the beginning of the year. The banking metropolis is known for the fact that the leasing activity only really picks up speed later in the year. This is the result of the analysis by BNP Paribas Real Estate.
“The largest deal in the first quarter, DZ Bank’s owner-occupier transaction in Fifty Avon with almost 21,000 m² of lettable space, builds on the major deals registered in the previous year and once again clearly illustrates what is driving the market in Frankfurt: high demand for premium space in prime locations that cannot be adequately met in the short term, so that the decision on space for project developments remains the best alternative. New leases are often accompanied by location consolidation. DZ Bank will comprehensively modernise the tower it has now acquired next to its headquarters and centre various corporate units here in an attractive banking location,” explains Riza Demirci, Managing Director and Frankfurt Branch Manager of BNP Paribas Real Estate GmbH.
The prime rent has recently risen to €55.00/m² (+2% year-on-year). The more volatile average rent temporarily fell to €27.30/m², but is still 5% above the previous year’s level and is likely to continue its upward trend in the future.
Frankfurt’s leading industries banks & advisors particularly high in rents
Frankfurt’s leading industries of banks and financial service providers as well as consulting firms were once again particularly strong in terms of rents compared to the rest of the industry at the beginning of the year. Supported by DZ Bank’s owner-occupier financial statements, the former have a market share of just over 28%. In addition to Westbridge Advisory’s 4,400 m² deal, the results of the consulting firms (16% market share) include numerous small and medium-sized leases.
Market activity was characterised above all by dynamism in the smaller space segment between 200 and 2,000 m², in which 57% of take-up was made. A further 15% was accounted for by medium-sized contracts between 2,001 and 5,000 m², while between 5,001 m² and 10,000 m² there was still no closing momentum. DZ-Bank’s 21,000 m² financial statement was the only transaction beyond the 10,000 m² mark, which corresponds to an average start to the year in the banking metropolis.
The vacancy volume fell slightly to 1.8 million m², although the shortage of first-time occupancy space available at short notice has further worsened. In the absolute top locations of the banking district and Westend, their volume amounts to just over 15,000 m². In response, the pre-letting rate in the project developments in the two top sub-markets has risen to currently 89%.
Prospects
The Frankfurt office market started 2026 with a moderate, albeit not atypical quarterly result. Certainly, the current armed conflicts in the Middle East are putting a far-reaching strain on the global economy and are also likely to have a dampening effect on the German economy. However, there are two components that point to more dynamic leasing activity in the banking metropolis in the further course of the year. On the one hand, the investment package for armaments and infrastructure launched by the German government last year is likely to provide support for the economy, and on the other hand, there are numerous major applications on the market that should be brought to a successful conclusion even in the face of renewed economic headwinds. Executives of large companies in particular are very aware that attractive office space is a very important lever for successful corporate management. Take-up of around 500,000 m² currently seems realistic.
“In terms of vacancy, it is becoming apparent that the peak will be reached with moderately declining volumes again. In the premium segment and project developments, supply should continue to be absorbed quickly by the market, so that the pressure on prime rents remains high. It is likely to slowly set course for the €60/m² mark,” says Riza Demirci.
Link to the market report: https://www.realestate.bnpparibas.de/marktberichte/bueromarkt/frankfurt-report
