NAI apollo: Leasing activity on the Frankfurt office space market remains subdued, prime rent at a new high

The fact that the subdued result is not solely due to a lack of demand is shown by the development of prime rents. This reached a new high in the second quarter of 2026. Within the past three months, the prime rent has risen by 1.70 euros to 55.00 euros per square metre. "Despite restraint, user demand is still there and in parts solvent. However, it is concentrating on modern, ESG-compliant premium space in central locations. But it is precisely there that the supply is becoming increasingly scarce. What comes onto the market in this segment achieves top values – while a large proportion of the requests cannot be met due to a lack of suitable space. As long as there is no easing on the supply side, we will see an increasing number of lease extensions," explains Martin Angersbach, Director Business Development Office Germany at NAI apollo.  

In the large-scale segment, market momentum has almost come to a standstill. In the first half of 2026, deals above 5,000 square metres accounted for around 32,100 square metres, around 85 per cent less space than in the exceptionally strong prior-year period. "Unlike in the previous year, the market lacks the formative large-scale deals. With the exception of the DZ Bank owner-occupier purchase from the first quarter, no deals above 10,000 square metres were registered – in the same period last year there were seven," explains Michael Preuße, Head of Office and Retail Letting at NAI apollo. "Demand is still there, but in the large-scale segment, there is a lack of suitable modern supply in the central locations," Preuße continues. The half-year was thus driven by the smaller and medium-sized size classes, with slightly more movement in the mid-range segment between 1,000 and 5,000 square metres compared to the beginning of the year.  

In the first half of 2026, "banks, financial service providers and insurance companies" will once again lead the field among the sectors in demand, with around 34,900 square metres and a share of around 23.2 per cent. However, the gap to the other sectors is significantly smaller than in the previous year, when the large leases of Commerzbank and ING dominated the statistics. "Without the major deals of the previous year, sales are noticeably more evenly distributed across the sectors. Banks and financial service providers remain ahead, but their lead is based on small and medium-sized deals instead of individual large deals," said Kanzler.  

In terms of space, market activity continues to be strongly concentrated in central locations. In the first half of 2026, the Central Business District (CBD) – with the sub-markets of Bankenlage, Westend, Stadtmitte and Finanzviertel West – accounted for around 84,900 square metres, or 56.5 per cent of total take-up. By far the most important sub-market is the banking situation with around 51,300 square metres. This is followed by the city center with around 13,600 square meters and the airport with around 12,100 square meters, where the largest deal in the second quarter took place with the leasing of almost 6,000 square meters of office space by Fraport AG in Squaire.  

The uninterrupted concentration of demand on premium space in central locations drove up the prime rent level again in the second quarter. The prime rent has risen by 2.50 euros per square metre within the past twelve months to currently 55.00 euros per square metre. The conclusion of an international commercial law firm in the new construction project "Opernplatz 2", which is still under construction and is significantly higher than the maximum rents achieved so far, stands out.  

The prime and average rents are currently developing in opposite directions: While the prime rent is reaching new highs due to the continuing demand for high-quality space in the Central Business District, the area-weighted average rent is declining. "At the end of the first half of the year, it was quoted at 28.20 euros per square metre – a decline of 3.00 euros per square metre or 9.6 per cent within the last twelve months. The reason for this is that the large-scale and high-priced deals of the previous year are gradually falling out of consideration and comparable new leases are failing to materialise," said Kanzler.  

The market-active vacancy rate on the Frankfurt office market continued to rise in the second quarter of 2026. At the end of June 2026, around 1.32 million square metres will be available at short notice. The vacancy rate has thus increased from 11.3 percent in the previous quarter to 11.6 percent. "Demand is clearly concentrated on the prestigious new top properties in central locations. Older portfolios, but also higher-quality space outside the centre, on the other hand, are given less consideration and are correspondingly longer on the market – additional vacancies are building up here," explains Preuße.  

The completion pipeline shows that hardly any additional relief is to be expected for the Frankfurt office market. After the very weak year 2025 (just under 48,000 square metres of completed space), around 118,000 square metres are planned for 2026, of which around 55,000 square metres are still available for rent. In 2027, the volume will increase to over 127,000 square meters, but only around 26,000 square meters of this will be rentable. Around 254,000 square metres are expected for 2028, of which 104,000 are currently still available. "The increasing number of completions is positive, but hardly leads to an easing in the central locations. For example, in 2028 alone, 42 percent of the projects will be accounted for by the three fully pre-let new buildings or revitalizations Central Business Tower, Parktower and Central Parx Tower, which will drive up the project volume without creating new free space," says Angersbach.  

The ongoing geopolitical uncertainties and the fragile economic environment are likely to increase the restraint of many market players in the coming months and thus slow down the Frankfurt office space market on the demand side. "At the same time, demand will continue to be concentrated on premium space in top locations in the second half of the year. However, since the corresponding supply continues to fall and at the same time hardly any speculative new construction projects are realized, there is further potential for increase in prime rents. In addition, high-quality existing properties in central locations are coming to the fore as an alternative – provided that the owners invest in the future viability of the properties," says Preuße. "If there are no corresponding investments, older existing properties are likely to increasingly lose rentability, even in the top locations, and drive up the vacancy rate at the overall market level," adds Angersbach.