According to Colliers, office and commercial buildings (BGH) were traded for 1.9 billion euros in Germany outside the top 7 in 2025 as a whole. This represents a decline of 14 percent compared to the previous year's figure. The number of transactions fell by 15 percent.
Early-cycle recovery starts from the most liquid markets
Manuel Backfisch, Head of Capital Markets B&C Cities Germany at Colliers: "The early recovery in the commercial investment market is starting selectively and in a disciplined manner. Investors are returning to office and commercial buildings – outside the top 7, however, only where location, use and cash flow are convincing in the long term.
The market momentum is limited above all by the lack of large-volume transactions. Almost three-quarters of the transaction volume and around 94 percent of all deals were in the size category below 50 million euros. Only eight transactions were higher. The average size of all sales in 2025 was 15 million euros – almost half of the sum found in top 7 markets. The largest transaction was a real estate ensemble at Freiburg's main railway station, which was sold by Hannover Leasing to a family office in southern Germany for 88 million euros.
Backfisch classifies: "This transaction is an ideal way to determine what investors value in the current market environment when they look beyond the national investment centres. Within an economically and demographically well-positioned macro location, the market-defining property is located in a central location. The micro-location opens up a wide range of demand, which minimizes vacancy risks in the event of re-letting. At the same time, some long-term leases ensure stable income. A realistic purchase price approach, taking into account the market conformity of the property, enables the buyer to make an attractive, risk-adjusted business case."
North Rhine-Westphalia again regional focus
With 763 million euros or 40 percent market share, nationally important B cities accounted for the largest investment amount outside the top 7. Dortmund ranks 1st with just under 150 million euros, followed by Freiburg (115 million euros) and Darmstadt (102 million euros). More than a quarter of the transaction volume went to North Rhine-Westphalia. In addition to the Ruhr area cities of Dortmund and Essen, Bonn, which has established itself as a particularly cash-flow-stable market due to a high proportion of public and state-related users, was also among the investors' favorites.
Market revival comes from central locations in B and C cities
"The new cycle offers attractive entry opportunities, especially for investors with strong equity capital who are not dependent on debt capital for purchase opportunities outside the core markets. We expect continued brisk buying interest, especially from private investors and regionally active family offices, in the coming months. Even though the top 7 cities will continue to be clearly in focus, especially for large-volume investments, which are the basis for a significant market recovery, central locations of B and C cities will also benefit from rising demand. However, volume growth will remain moderate in 2026," Backfisch expects.
