BNP Paribas Real Estate publishes office market figures for the 1st quarter of 2026
Leipzig’s office market had a subdued start to 2026: in the first quarter, take-up amounted to just 15,000 m², which is almost a precision landing compared to the same quarter of the previous year (-6%). The ten-year average of 22,000 m² was not reached. The high resilience of the Leipzig market observed in previous quarters and the comparatively low level of reaction to economic fluctuations cannot currently be determined. The weakening economy as well as macro and geopolitical risks are having a dampening effect on leasing activity. Especially in the segment of medium-sized leases, the market is extremely weak at the beginning of the year. By the end of March, no contracts for areas between 1,000 and 5,000 m² had been registered. This is the result of the analysis by BNP Paribas Real Estate.
“Overall, around 61% of the result is accounted for by deals up to 500 m². If you look at the number of contracts concluded, their share is as high as 93%. This small-scale structure characterises the market and represents a solid demand base for the trade fair city. In addition, a contract for 5,000 m² was already signed in Q1. This involves the leasing of 5,200 m² by the public sector in Leipzig West,” explains Stefan Sachse, Managing Director and Leipzig Branch Manager of BNP Paribas Real Estate GmbH. The prime rent is unchanged from the previous year at €21/m². It will continue to be achieved for premium space in city locations. The average rent has remained stable at €13.50/m² since December 2025.
Industry structure not yet meaningful
As a rule, the industry distribution after the first three months of a year represents a snapshot rather than a typical picture for the market. This year was no exception. Due to the major deal of the public sector, market activity is clearly dominated by it. It is responsible for an above-average 63% of the result. A further 31% are contributed by service companies that have a large number of smaller degrees.
The vacancy rate at the end of March 2026 amounted to 235,000 m², which corresponds to an increase of 24% year-on-year. Only 46% of the vacant space corresponds to the modern and highly sought-after furnishing standard. In this segment, a decline of 7% was recorded in the first quarter, which underlines the high demand for this space. The vacancy rate rose slightly to 5.8% and thus remained just above the fluctuation reserve.
The space under construction has fallen noticeably to 51,000 m² within the last twelve months (-52% compared to Q1 2025). The volume of space still available under construction has also declined and is now trading at only 23,000 m². This impressively shows how quickly new high-quality space is absorbed by the market.
Prospects
“Leipzig’s office market has made a very cautious start to 2026. At the moment, there is a particular lack of medium-sized and large contracts, which often drive up sales, especially in smaller markets. The current volatile market environment is also slowing down leasing momentum. A weakening economy as well as macroeconomic and geopolitical uncertainties continue to characterize the situation. However, if the economic situation improves, there could also be an increase in demand for office space in Leipzig, so that a solid result for the year as a whole seems possible. The applications currently on the market also allow a positive outlook for the coming months. A result slightly above the previous year’s figure of 85,000 m² is realistic,” says Hannes Baderschneider, Leipzig branch manager of BNP Paribas Real Estate GmbH.
On the supply side, a further increase in vacancies is expected on the coming quarters. At the same time, the supply of high-quality office space, especially in central locations, is likely to remain scarce.
Against the backdrop of the demand structures outlined above and the simultaneous shortage of premium space in prime locations, it can be assumed that the pressure will remain high for the rest of the year, but the already high prime rent should maintain its reached level for the time being.
