Uncertainty slows down take-up at the start of the year
In the 1st quarter of 2026, take-up in the top 6 office markets* reached 560,800 m². This was 18% below the previous year’s figure. Compared with the ten-year average, take-up fell by 21%.
Jan-Niklas Rotberg, Managing Director and Head of Office Agency Germany at Savills, comments: “The start of the year in the top 6 office markets was subdued and there was no recovery. The uncertain geopolitical and economic environment continues to slow down the willingness to relocate, and many companies are taking significantly more time to make decisions. Location and space options are carefully analysed, and costs, location and future viability are intensively weighed up. At the same time, extension options are being examined and often used.”
Hybrid working drives relocations and leads to a shift in demand
Hybrid working remains an important reason for moving. Antonia Wecke, Associate Research at Savills, explains: “Flexible working models are fundamentally changing the demand for space. While companies are reducing their space requirements, they are also placing higher demands on floor plans, collaboration space, and building standards. As a result, demand is increasingly concentrated on high-quality, centrally located office space. In this segment, supply is rather limited, vacancy rates are relatively low and the bargaining position between tenants and landlords is balanced. Quality-oriented industries in particular accept higher rents and reduce their total area in return – with further increases in prime rents as a result.”
Away from the top segment, users benefit from a more relaxed market
Jan-Niklas Rotberg observes: “Away from the top segment, many users are currently experiencing a much more relaxed market. The shift in demand towards higher quality and central locations means that peripheral and less competitive stocks are becoming less attractive and vacancies are rising. In these properties, users often have a strong negotiating position when renewing contracts, which is reflected in flexible terms and attractive incentives. Many companies therefore extend existing contracts in order to gain time to clarify costs, expansion and future space requirements. Overall, the increasing focus on quality is reinforcing the segmentation of the market.” The rising prime rents combined with increasing vacancies illustrate an increasing market polarization. On average, the prime rent was higher than the top rent. -6 cities increased by 1.5% quarter-on-quarter, while the vacancy rate rose by 40 basis points to 8.7%.
Cost-sensitive users find solutions in good neighbourhood locations
“Not every company looking for better space can or wants to make the leap into the premium segment. For them, well-connected district locations are often the economically more sensible alternative. Public users and SMEs in particular want to improve the quality of their space and location, but remain clearly cost-oriented. Efficient, appropriately priced concepts in suitable locations are therefore in demand – not necessarily high-end products,” explains Rotberg.
Outlook: Stable activity and opportunities for well-located stocks
Rotberg looks ahead to the rest of the year: “We expect stable market activity in the coming months, while a significant revival is not foreseeable in the current environment. Nevertheless, there is movement where companies adapt their space to hybrid working models, existing buildings no longer meet requirements or trigger strategic location decisions at the end of leases. In the medium term, there will also be opportunities for owners of well-located portfolios because the supply of high-quality new buildings will decline in the face of declining building permits. Those who modernize existing buildings and position them appropriately can benefit from this.”
* Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne and Munich
