Frankfurt office market: Moderate start to the year with 82,000 m² of take-up

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%.

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