BNP Paribas Real Estate publishes office market figures for the 4th quarter of 2025
With take-up of 68,000 m², the Essen office market in 2025 fell short of both the previous year’s result by around 27% and the 10-year average by a wide margin (-39%). This is the result of the analysis by BNP Paribas Real Estate.
“The continuing challenging economic and geopolitical situation is having a dampening effect on leasing activity. The moderate result is primarily due to a lower number of contracts recorded in the course of the year. Only around 90 trades were registered in 2025, which is about 15% fewer than in the previous year. While the leasing activity in the small and large space segment was lively in the annual review, there was a lack of leases in the mid-size segment between 2,000 and 5,000 m², which are important for the market,” explains Amedeo Augenbroe, Essen branch manager of BNP Paribas Real Estate GmbH. Only two contracts were generated here by the end of 2025 (-57% compared to the long-term average).
Thanks to the major contract signed by the city of Essen in the first quarter for 13,000 m², Weststadt remains the Ruhr metropolis’s highest-turnover sub-market (~18,000 m²) even after twelve months. The city centre recorded around 14,000 m² of take-up, placing it in 2nd place. Here, too, the city is making a significant contribution by renting over 6,000 m² in the newly built Kontorhaus Ost.
The persistently high demand for modern space, especially in new construction for the first time, is reflected in an increase in rents. The prime rent rose by 11% year-on-year to €20/m². This is achieved in the city centre for premium areas.
Four sectors in the double-digit percentage range, modern vacancy rate constant at 38,000 m²
The diversified demand impulses on the Essen office market should be emphasized positively. A total of four industries each achieve double-digit market shares. With an above-average market share of around 35% (average 10 years: 18%), the industry leader of 2025 is public administration. This is due, among other things, to the already mentioned large deals of the city of Essen. This is followed by other services, which are mainly characterised by small and medium-sized contracts and reach a share of 19%. Consulting firms rank third with an above-average 15%, supported by the third-largest rental of the year. The traditionally strong industrial companies are only in fourth place in the ranking in 2025 with 12%.
At the end of the year, Essen recorded a vacancy volume of around 287,000 m², which corresponds to an increase of 14% compared to the previous year. The modern vacancy rate remains at a low 38,000 m². As a result, only 13% of vacant spaces have modern furnishings, which are often preferred by tenants. New construction space for first occupancy remains in short supply. The vacancy rate now stands at 8.9%.
Currently, around 34,000 m² of office space is under construction, roughly the same amount of space as at the end of 2024. The pre-letting rate is at a high 62%, which impressively underlines the rapid absorption of new construction space in the market.
Prospects
The Essen office market will record a rather restrained development in 2025. While demand was still comparatively dynamic in the first quarter, activity declined noticeably, especially in the two following quarters. However, the slight increase in leasing activity in the final quarter was no longer able to compensate for the low turnover and the decline in the number of contracts recorded to date. Thus, the overall result remains well below the long-term average. However, the relatively high number of smaller deals of up to 1,000 m², which gives the market of the Ruhr metropolis a stable foundation, should be viewed positively. Against this background and in view of the gradually slowly recovering German economy, the letting performance in Essen is also likely to increase slightly again in the coming year. However, it remains to be seen whether take-up in the range of the long-term average (100,000 m²) is possible.
“On the supply side, there is hardly any expectation of an easing in 2026 either, especially not in the modern office space segment. Although the vacancy rate for older existing properties is likely to rise slightly, modern and ESG-compliant space will remain scarce. Due to the limited supply of high-quality office space combined with continued high demand, the pressure on prime rents is likely to continue,” says Amedeo Augenbroe.
