Berlin, Munich and Düsseldorf Drive Recovery – Vacancy Rate Reaches 10 Per Cent – Prime Rents Continue to Rise
Cushman & Wakefield recorded office take-up of 628,500 sq m across Germany’s five key office markets (Berlin, Düsseldorf, Frankfurt, Hamburg and Munich) in the third quarter of 2026. Compared with the same quarter of the previous year (Q3 2025: 531,200 sq m), this represents an increase of around 18 per cent. Berlin and Düsseldorf, in particular, delivered double-digit growth in office leasing activity and were key contributors to the positive overall result.
Over the first three quarters of the year, the Top 5 markets remained broadly stable, showing a moderate upward trend. Total take-up reached 1.775 million sq m, five per cent above the same period last year (Q1-Q3 2025: 1.697 million sq m).
Mario Herbst, Head of Leasing and Tenant Representation Germany at Cushman & Wakefield, commented: “The occupier market is showing early signs of recovery. Companies are once again engaging more actively with their space requirements, and larger requirements are reaching completion more frequently than in recent years.”
Office Take-Up: Berlin and Düsseldorf Provide the Strongest Momentum
Berlin has been the strongest-performing Top 5 market so far this year. With 563,800 sq m of take-up during the first nine months of 2026, leasing activity was an impressive 54 per cent above the previous year’s level. In the third quarter alone, take-up totalled 183,400 sq m, an increase of 58 per cent year-on-year. A major contribution came from Berliner Verkehrsbetriebe’s lease of approximately 39,400 sq m at “Re:o” in the Inner East submarket.
Düsseldorf also recorded strong growth, with take-up reaching 203,300 sq m after nine months, representing a 25 per cent increase year-on-year. The quarter was significantly influenced by Uniper’s lease of around 36,800 sq m at the “NEW HEART ON THE BLOCK” development on Kennedydamm.
Munich achieved the second-highest take-up volume with 467,200 sq m, exceeding the previous year’s level by 16 per cent. Frankfurt recorded 260,700 sq m, 43 per cent below the exceptionally strong result achieved in the previous year. However, activity in Germany’s financial capital stabilised in the third quarter at 115,500 sq m, broadly in line with the same period last year. Frankfurt’s largest leasing transaction of the quarter was BaFin’s lease of approximately 21,700 sq m at “RAW” in the Europaviertel/Messe submarket. Hamburg reached 280,400 sq m after nine months, remaining nine per cent below the previous year’s level.
Large Transactions Return While the Market Remains Broadly Small-Scale
The number of recorded transactions increased significantly. Across the Top 5 markets, around 2,100 lettings and owner-occupier deals were completed during the first nine months of the year, up 14 per cent compared with the same period in 2025. At the same time, the share of transactions exceeding 10,000 sq m declined from approximately 22 per cent to just under 18 per cent of total take-up. This suggests that the market’s modest recovery is not being driven solely by a handful of large deals. Nevertheless, major transactions were crucial to the substantial increases recorded in Berlin and Düsseldorf.
Among the largest lettings of the first nine months, alongside the BVG and Uniper transactions, were JetBrains’ leases of approximately 21,500 sq m at “Rufhaus” in Munich and around 19,000 sq m at “Hainwerk” in Berlin, E.ON’s lease of approximately 20,500 sq m in Munich, and KPMG’s lease of around 17,300 sq m at “One Plaza” in Düsseldorf. In Frankfurt, ODDO BHF provided a further boost through its lease of approximately 14,700 sq m at “Skyper”.
Commenting on current occupier behaviour and preferences, Hanjo Theiss, Head of Office Agency & Office Sector Germany at Cushman & Wakefield, said: "The performance of individual markets demonstrates the extent to which large transactions can shape current market activity. Where several larger requirements are completed, results improve quickly and significantly. At the same time, underlying demand remains characterised by caution and longer decision-making processes among many occupiers. As a result, performance across the Top 5 markets remains highly varied.”
Demand also continues to be concentrated in established office locations. Among submarkets, Berlin’s Inner East recorded approximately 94,000 sq m of new lettings, Munich’s Inner West approximately 91,000 sq m, and Düsseldorf’s Kennedydamm around 78,000 sq m. In Hamburg, the City Centre led with around 65,000 sq m, while Frankfurt’s Banking District recorded approximately 52,000 sq m.
Prime Rents Rise Despite Growing Vacancy – Vacancy Rate Reaches 10 Per Cent
Market polarisation remains the defining theme. By the end of the third quarter, 7.885 million sq m of office space stood vacant across the Top 5 markets, approximately 10 per cent more than a year earlier. The aggregate vacancy rate consequently reached 10.0 per cent, up from 9.1 per cent a year ago.
Frankfurt recorded the highest vacancy rate at 12.1 per cent, followed by Düsseldorf at 11.5 per cent and Berlin at 10.6 per cent. Munich’s vacancy rate stood at 9.3 per cent, while Hamburg recorded 7.4 per cent.
“The rise in vacancy is becoming an increasingly poor indicator of the actual availability of suitable office space. What matters is the quality of the space on offer. In some segments, supply is now abundant, whereas modern space with strong occupier amenities and high ESG performance is considerably less available,” added Hanjo Theiss.
At the same time, headline rents increased in four of the five markets. Munich remains Germany’s most expensive office market, with a prime rent of €58.00 per sq m per month, followed by Frankfurt at €55.00, Berlin at €49.00, Düsseldorf at €46.00 and Hamburg at €37.50.
On an annual basis, Berlin recorded the strongest rental growth at just under nine per cent. Frankfurt and Munich each posted increases of around five to six per cent, Hamburg increased by more than four per cent, while Düsseldorf remained stable. The contrasting trends of rising vacancy and increasing prime rents underline the growing qualitative polarisation within the market. Modern, efficient and well-connected office space continues to achieve rental growth, while older or less competitive stock contributes to rising vacancy levels.
Outlook: Recovery Remains Selective
By the end of the third quarter, the Top 5 office markets had returned to moderate growth in nine-month take-up volumes. The higher number of transactions and several large-scale lettings point to a selective recovery in market activity.
Concluding, Hanjo Theiss said: “For the coming months, we expect a gradual stabilisation in demand, but not a return to the market conditions seen during previous peak cycles. Occupiers will remain focused on costs and quality. Above all, high-quality, efficient and future-proof office buildings are likely to benefit from this trend.”
