The Frankfurt office lettings market (including Eschborn and Offenbach/Kaiserlei) recorded a total take-up of 267,700 square metres in the first three quarters of 2026. This figure was around 40 per cent below the exceptionally strong performance in the same period of the previous year and a good 20 per cent below the ten-year average. In the third quarter, however, letting activity gained momentum and reached the highest quarterly take-up of the year to date. The stabilisation trend also continued in the Frankfurt property investment market. The total transaction volume for the first nine months amounted to 620 million euros, which was just under 30 per cent higher than in the same period last year. Of this, 321 million euros was attributable to office properties. These are the findings of a recent analysis by the global property services firm CBRE.
Office lettings market
“Despite the generally subdued results, we saw the highest level of letting activity so far this year in the third quarter. Three large-scale deals exceeding 5,000 square metres injected further momentum into the market,” says Alexander Riegel, Head of Office Leasing Frankfurt at CBRE. “At the same time, the divergence between the premium and existing stock segments continues. Modern, high-quality space in central locations is clearly preferred by occupiers.” As a result, the ‘flight to quality’ trend continues to shape the market, not only in the sub-markets of Frankfurt’s CBD.
The largest deal of the third quarter was secured by the Federal Financial Supervisory Authority (BaFin) in the RAW new-build project, covering just under 22,700 square metres. This was followed by ODDO BHF with around 14,000 square metres in the SKYPER and AirPlus with around 8,000 square metres in the Skylight. BaFin is thus relocating from the north of the city to the west. ODDO BHF is moving from Gallusanlage 8 to the neighbouring SKYPER. AirPlus is relocating its offices from Neu-Isenburg to Frankfurt city centre. Despite these major deals, the bulk of market activity remained fragmented: all other deals in the third quarter were under 3,500 square metres, resulting in an average deal size of around 600 square metres.
Lease renewals had a greater impact on market activity than they did in the first half of the year. In the third quarter alone, renewals accounted for around 80,000 square metres. Since the start of the year, the total volume of renewals has amounted to around 153,000 square metres.
“The high level of lease renewals is not a uniform sign of weakness,” says Riegel. “It reflects a variety of motives – ranging from interim extensions and the completion of new premises, through loyalty to a location with a good location and high quality, to cost-driven decisions in favour of existing premises.”
The vacancy rate rose by 0.7 percentage points compared with the same period last year to 11.4 per cent. At the same time, the availability of high-quality space in the most sought-after prime locations remains limited. Demand continues to focus on modern, high-quality space in central locations.
The conversion of vacant office space – for example, into hotels or serviced apartments – remains a challenging process. In addition to the technical and financial requirements, the marketability of the properties following conversion poses a particular challenge.
The challenging economic environment continues to be reflected in the project pipeline. High construction and financing costs, more restrictive lending practices and increased profitability requirements are limiting new project developments. The decline in the proportion of speculative projects being launched reflects market participants’ increased risk aversion and underlines a stronger focus on secured demand. Against this backdrop, the total volume of the completion pipeline up to 2028 has remained virtually unchanged compared with Q2 2026.
The achievable prime rent rose to 56.00 euros per square metre per month in the third quarter. However, this trend is limited to a small premium segment comprising new-build developments or refurbishments in the banking district. This momentum is not reflected across the entire market. Most lettings, including larger ones, in the current year were concluded at significantly lower rent levels, below the achievable prime rent. This also explains the decline in the area-weighted average rent based on new lettings over the last twelve months. This fell by around 14 per cent compared with the same period last year to €26.88 per square metre per month. The prime rent achieved for new leases across the market as a whole stood at 52.00 euros per square metre per month.
“As well as the prime rent, what matters is the quality of space that companies get for their budget,” explains Riegel. “Modern, ESG-compliant spaces in central locations remain scarce and expensive. Anyone looking for such spaces must generally expect to get less space for the same budget or accept higher overall costs. In contrast, for older existing properties and those outside the very prime locations, there continues to be a wider choice and greater scope for negotiation. For comparable existing premises outside the prime locations, rent levels remain largely stable.”
Property investment market
“There is currently a great deal of property available on the Frankfurt property investment market. At the same time, purchase processes remain challenging due to changes in interest rates and the associated financing conditions,” says Bent Roggenbock, Head of Investment Frankfurt at CBRE. “In particular, robust tenant demand for high-quality office space in central locations is increasing visibility for investors. The rise in transaction volumes shows that the market is continuing to stabilise compared with last year.”
Investors continue to focus in particular on office properties in prime locations offering high-quality space and buildings. They are taking a much more selective approach to properties in B and C locations. In these cases, in addition to the quality of the property, the letting prospects and a robust business plan are becoming particularly important. At the same time, sellers have become more willing to accept revised asking prices.
“The prime yield for office property in the CBD remained stable at 4.90 per cent in the third quarter,” says Aykun Bulan, Associate Director of Valuation Advisory Services Office at CBRE. “Trends in outlying and peripheral areas also remained stable in the third quarter. However, for the fourth quarter, we expect prime yields to rise in the CBD as well as in outlying and peripheral areas.”
Outlook for the rest of the year
“We expect further tenancy agreements to be signed as the year progresses. Depending on the location and quality of the premises, further rent increases are possible, particularly for new-builds and refurbished premises in central locations,” says Riegel.
“There are also a number of transactions in the pipeline in the investment market that could be finalised in the fourth quarter,” says Roggenbock. “Against this backdrop, we expect investment volumes for the year as a whole to be higher than in 2025. However, the financing environment and the speed with which ongoing transaction processes can be brought to a conclusion remain crucial.”
