By the end of the third quarter of 2026, the Leipzig office market had recorded a take-up of 55,000 m². Whilst this figure is significantly below the long-term average of 92,600 m², it reflects the current subdued trend in demand, which is also evident in numerous other German office markets. Compared with the same period last year, this represents a decline of 13 per cent. Meanwhile, the location’s fundamentals remain stable and underline the long-term appeal of the Leipzig office market. This is the finding of an analysis by BNP Paribas Real Estate.
One positive aspect worth highlighting is the slight increase in momentum over the course of the year. Whilst 15,000 m² and 18,000 m² were let in the first two quarters respectively, take-up rose to 22,000 m² in the third quarter. It is also worth noting that three of the year’s five largest deals were recorded in the third quarter alone. With Distart Education (2,700 m²), the REPLOID Global Innovation Centre (2,500 m²) and an information and communications technology company (2,000 m²), several players from innovative, forward-looking sectors chose to locate here. “These deals highlight Leipzig’s importance for technology- and knowledge-based companies and strengthen the market’s position in high-growth economic sectors,” explains Stefan Sachse, Managing Director and Head of the Leipzig branch of BNP Paribas Real Estate GmbH.
Whilst the prime rent remains unchanged at €21 per square metre, the average rent has risen by 2 per cent to €13.60 per square metre. This suggests that prices remain stable despite the generally subdued market conditions.
Demand is concentrated on small and medium-sized spaces; a significant decline in space under construction
With a share of turnover of just over 42 per cent, other services represent by far the largest user group. Their market share is well above the long-term average of 24 per cent and highlights the broad base of demand in Leipzig’s office market. Key drivers of this growth are private educational institutions, as well as property and energy service providers, which account for a significant proportion of this result. In second place is the healthcare sector, with a share of 19 per cent, which also contributes significantly more to take-up than the average over the past ten years (9 per cent).
Demand has so far been concentrated primarily on small and medium-sized spaces. Large-scale transactions have traditionally played only a minor role in the Leipzig office market. In the current year, too, only one transaction in the over 5,000 m² segment – involving 5,400 m² – has been recorded to date, involving the public sector. Consequently, take-up in this size category remains well below the previous year’s figures.
Whilst the volume of vacant space has increased by 20 per cent to 252,000 m² within a year, construction activity has declined significantly. The volume of space under construction currently stands at 33,000 m², which is 58 per cent below the previous year’s figure. At the same time, only around 7,000 m² of this is still available. The resulting pre-let rate of 79 per cent highlights the high demand for high-quality new-build space.
Outlook
Despite the fact that take-up remains below average, the Leipzig office market is performing solidly overall. Demand is currently concentrated primarily on small and medium-sized space segments as well as modern office space, whilst large-scale deals remain the exception. The high pre-let rate, coupled with a sharp decline in new-build activity, highlights that high-quality space, in particular, remains in demand. Together with the latest lettings from technology- and knowledge-based sectors, this points to a sound market foundation and the location’s continued appeal to forward-looking companies.
The outlook for the Leipzig office market therefore remains solid overall. The trade fair city is also likely to benefit from a gradual economic recovery. The first positive signs have recently come from the ifo Business Climate Index, which has risen again, indicating a gradual improvement in economic conditions. “A revival in take-up is on the horizon for the coming months. Whilst the vacancy rate is likely to rise further, this is expected to have only a limited impact on rent trends. Accordingly, both prime and average rents are expected to remain largely stable until the end of the year,” forecasts Hannes Baderschneider, Head of the Leipzig branch of BNP Paribas Real Estate GmbH.
