Newmark continues to observe a high level of dynamism in the Munich office market. Take-up rose by 33 per cent year-on-year to around 349,000 square metres. The development is supported by a broader demand base. In addition to owner-occupiers, companies from the technology, semiconductor, defense and life sciences sectors are increasingly shaping the market. At the same time, the trend towards modern, high-quality office space is continuing.
Broader demand creates more market momentum
Leases of between 1,000 and 5,000 square meters remain the backbone of the Munich office market. In 2023, they still accounted for about half of take-up, and in the first half of 2026 their share will be one third. Accordingly, leasing activity is more widely distributed across the market: large-scale deals of 10,000 square metres or more now account for around 30 per cent of take-up and illustrate the increased demand from larger users.
“The Munich office market is benefiting from a much broader demand base than it was just a few years ago. In addition to established technology companies, companies from future-oriented industries are increasingly appearing as large-scale users and ensuring stable market dynamics,” says Matthias Hausch, Head of Office Leasing in Munich at Newmark.
This development is also reflected in the industry structure. Companies in the technology, semiconductor, defense and life sciences sectors are now shaping the market more strongly than users from consulting or finance. The technology sector alone quadrupled its take-up compared to the same period last year to around 91,000 square metres. Significant deals include JetBrains, Analog Devices, NXP Semiconductors and Uvision Europe.
Premium space is becoming scarcer, older stocks are coming under pressure
Demand continues to focus on modern, ESG-compliant office space with a high quality of stay, attractive features and short-term availability. New buildings and comprehensively modernised buildings are therefore developing significantly better than the market as a whole. Examples of this are Neue Balan, the Business Campus Garching and MARK in the west of Munich, which is now almost fully let. Modern office locations outside the classic city centre locations, such as Unterhaching, are also becoming increasingly attractive for companies.
At the same time, the persistently high demand for high-quality space is supporting the rent level. The prime rent rose to 60.00 euros per square metre, while in individual cases up to 74.00 euros per square metre were already achieved. The area-weighted average rent remained at the previous year’s level at 27.20 euros per square metre. At the same time, the vacancy rate is 8.8 percent and is rising especially in older existing buildings that no longer meet the increased requirements of users. Modern and high-quality equipped areas, on the other hand, continue to be absorbed quickly.
“In the medium term, the vacancy rate is likely to remain above the ten-year average as companies continue to develop their workplace concepts and optimise their space requirements. Flexible working models remain part of the office world, while demand is increasingly focused on high-quality, well-connected and ESG-compliant buildings,” says Helge Zahrnt, Head of Research at Newmark.
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For 2026 as a whole, Newmark expects office space take-up in Munich to be around 600,000 m². The development of the office market is likely to be increasingly determined by the quality of the space. Modern, ESG-compliant offices in good locations remain scarce and offer further potential for rent increases. On the other hand, the pressure is increasing on older existing buildings, which can no longer be placed on the market without modernization and attractive incentives. At the same time, demand for large office space is likely to be driven primarily by companies in the robotics, defense technology, semiconductor and life sciences sectors.
