Rental result falls at half-year, prime rent stagnates
The office market in the Rhine-Neckar metropolitan region closed the first half of 2026 with a solid result. Take-up in the cities of Mannheim, Heidelberg and Ludwigshafen totalled around 30,000 m² in the first six months of this year. Compared to the previous year (33,900 m²), this is a slight decrease.
Mannheim accounts for the largest share of total take-up at 12,000 m², closely followed by Ludwigshafen (11,000 m²) and, at a distance, Heidelberg (7,000 m²). However, Mannheim’s neighboring city benefited from a major deal: The city of Ludwigshafen announced the lease of around 10,000 m² in the “Palatineo” project at Berliner Platz. There, several administrative units spread over the city area are to be merged into a new town hall.
In Mannheim, too, the public sector accounted for a significant share of take-up. The Mannheim District Court has leased 5,750 m² in the Augustaanlage 33 office building, which has been renovated by Landmarken. “Last year, the state of Baden-Württemberg had already ensured a decent take-up of space in Mannheim with the Cooperative State University, and other public institutions are currently sounding out the market. The public sector is currently the driver of the office market in the Rhine-Neckar region,” emphasizes Konstantinos Krikelis, Metro Lead Office Leasing & Investment JLL Rhein-Neckar.
According to his observations, when looking for space, users are increasingly paying attention to the price-performance ratio. “Outside the CBD, the supply of space has increased significantly, which increases the pressure on landlords. There are currently only a few buyers for high-priced space. Users are more likely to compromise on the location than to pay a rent that they consider too high. The market here has turned in favor of the tenants,” Krikelis describes the situation. Anyone who negotiates with an interested party as an owner tries to accommodate him and persuade him to conclude the deal. “This applies to the entire region.”
As a result, the prime rent has been stagnating for some time. It is currently 22.50 euros/m² and can only be assumed for Mannheim’s top locations. In Heidelberg, up to 19.50 euros/m² are possible, in Ludwigshafen a maximum of 14 euros/m². Due to the market situation, Krikelis does not expect the prime rent to rise in the short to medium term.
According to his observations, there is currently strong demand for well-connected sub-markets with modern space stock. For Mannheim, in addition to the Glückstein district, this includes the area along the Augustaanlage and in Heidelberg everything around the main station: “Bahnstadt and especially the Heidelberg Innovation Park are the locations where everyone wants to go at the moment.”
