As was already the case in the first half of 2026, activity on the Essen office market remained subdued in the third quarter. This is primarily due to the continuing challenging economic and geopolitical conditions, which are causing many companies to adopt a wait-and-see approach when it comes to leasing decisions. By the end of September, only around 31,000 m² of office space had been let. This meant that take-up was approximately 33 per cent below the previous year’s figure and around 60 per cent below the long-term average. Following a moderate start to the year and a very sluggish second quarter with just 8,000 m², market momentum picked up slightly between July and September, reaching 13,000 m². These are the findings of an analysis by BNP Paribas Real Estate.
“A key reason for the overall subdued performance is the low number of lease agreements concluded. In the first nine months, only around 60 agreements were registered. This is approximately 22 per cent fewer than the average over the past ten years. There was a notable lack of major deals, particularly in the large-scale segment of 5,000 m² and above. By contrast, market activity was significantly more dynamic for smaller spaces of up to 1,000 m². A relatively high level of letting activity was observed in this segment. Accordingly, this size category accounted for around 69 per cent of the total space let,” explains Amedeo Augenbroe, Essen branch manager at BNP Paribas Real Estate GmbH.
The prime rent has remained steady at €20/m² since the end of 2025. This represents a 5 per cent increase compared with the same quarter of the previous year. The average rent has also remained largely stable since the end of Q1 2026 and currently stands at €13.40/m².
Wide range of sectors; vacancy levels in the modern space segment continue to fall
The breakdown of turnover by sector currently highlights the broad base of demand in the Ruhr metropolis. No fewer than four sectors account for double-digit shares. Nevertheless, market activity in Essen is characterised by industrial companies, which have traditionally had a strong presence. They account for around a quarter of total turnover and play a particularly important role in the smaller segment of up to 1,000 m². In second place are other service providers (14 per cent), who are generating high demand, particularly in the smaller space segment. Lobbyists also make an above-average contribution of just over 13 per cent. A key factor here is the largest lease agreement of the year to date, signed by the Technical Association of Energy Plant Operators for around 3,000 m². A further 11.5 per cent is accounted for by the public sector, which also contributes one of the larger deals with a lease of around 2,000 m² in the Weststadt district.
The vacancy rate currently stands at around 272,000 m² and has fallen by 5 per cent since the start of the year. At the same time, demand for modern office space remains high. However, at 36,000 m², this segment accounts for only a small proportion – 13 per cent – of the total supply. The vacancy rate currently stands at 8.4 per cent.
At the end of September 2026, a further 25,000 m² was under construction. Compared with the same period last year, this represents a significant decline of 26 per cent. The pre-let rate remains high at over 50 per cent, significantly exceeding the national average of 45 per cent.
Outlook
The Essen office market has had a rather weak first three quarters of 2026. It has not yet been possible to match the letting activity seen in previous years. This is largely due to the continuing challenging economic conditions, which are causing a degree of caution, particularly in the large-scale segment.
“Although the leading German economic research institutes have significantly revised their economic growth forecasts for the remainder of 2026 upwards in their latest projections, the long-term average of 90,000 m² is unlikely to be achieved by the end of December. A total figure of around 50,000 m² is a more realistic estimate,” said Amedeo Augenbroe.
Vacancy rates are expected to rise further, albeit only moderately. This will mainly affect older office spaces, for which demand is limited due to the standard of their fittings.
At the same time, the shortage of high-quality space is likely to persist. No significant relief is expected in the short term as a result of new developments coming on stream. Against the backdrop of limited supply of modern office space, there are therefore strong indications that prime rents will rise slightly further.
