CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

Munich office take-up has halved compared to last year

Verena Bauer • 05/10/2023

International real estate consultancy firm Cushman & Wakefield (C&W) recorded take-up of 325,800 sq m in the Munich office market in the first three quarters of 2023. The result is thus around 40 percent below the 10-year average and around 43 percent below the 5-year average. Compared to the previous year's equivalent result, the decline in take-up is around 47 percent.

Weak Q3 due to lack of major lettings

Overall, take-up in Munich in the third quarter totalled 87,700 sq m. Both this quarterly figure and the cumulative result for 2023 to date represent a record low, the likes of which have not been seen here since data collection began. This is primarily due to the absence of large-scale lettings and owner-occupier transactions. Larger deals are being postponed increasingly often.

The majority of lettings in the third quarter (123 of 143 recorded transactions) took place in the space segment up to 1,000 sq m, which means that the trend towards small transactions continues as in the two previous quarters. Between July and September there was only one letting in the 3,000 sq m to 5,000 sq m segment with the leasing by Ramboll GmbH in "Fabrik". In second and third place come the leases concluded by Jungheinrich AG in the "Neue Balan" property for 2,500 sq m and a public administration tenant in the "Campus C" property with 2,400 sq m.

Prime office rent plateaus at EUR 44.50/sq m

The sustainable prime office rent remained stable compared to the previous quarter at EUR 44.50/sq m per month. Compared to the same quarter of the previous year, however, this level represents an increase of EUR 1.50/sq m. The prime rent is mainly achieved in the Old Town, City Centre North and City Centre West submarkets. The third quarter again showed that rents of EUR 50.00/sq m per month are possible in some particularly high-quality properties in very good locations.

The area-weighted average rent across new lettings over the past twelve months was EUR 23.35/sq m per month at the end of September 2023, down EUR 0.95/sq m on Q3 2022.

Hubert Keyl, Head of Office Agency Munich and Head of C&W's Munich office, comments: "The downsizing trend is clearly discernible in the Munich lettings market - companies are increasingly making larger parts of their space available for subletting and small-space deals continue to dominate the market. On the one hand, desk-sharing and remote working models are reducing the need for space, and on the other tenants are trying to reduce the rent burden by moving into a smaller area. If no suitable space can be found, tenants currently prefer to stay in their current premises." 

Industrial companies are the main take-up drivers

The industrial, transport and traffic sectors achieved the highest take-up in Q3 at 22,400 sq m (28 deals), 68 percent of which was in the surrounding area submarkets. The second highest take-up was recorded by companies from the construction and real estate sector at 12,600 sq m.

Vacancy rate in the market area at a constant medium level

The vacancy rate at the end of Q3 is 5.6 percent, an increase of 50 basis points compared to Q3 2022, with absolute vacancy totalling around 1.2 million sq m at the end of September 2023. This level is the same as in Q2. In contrast, the vacancy rate in subletting space has increased. While 97,500 sq m was registered here in Q3 2022, this figure had grown to 121,200 sq m in Q3 2023. There has also been an increase compared to Q2 2023 (103,200 sq m). 

Construction activity remains high, new buildings popular with tenants

A total of 359,100 sq m of office space was completed in the Munich office market in the first three quarters of 2023. Of this, 21 percent or 74,500 sq m was attributable to Q3. At the time of completion, 51 percent of the space was already occupied. Currently, a total of 818,300 sq m of office space is under construction, 45 percent of which is pre-let. With around 1.0 million sq m of office space in planning, Munich continues to have a well-filled development project pipeline.

 

Office leasing market Munich

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Modern office space
Cushman & Wakefield brokers new call centre space for Avedo in Augsburg

Avedo München GmbH, which specialises in dialogue marketing, is moving into new premises for its Augsburg branch. The company has leased approximately 360 m² of office space in the Sheridan Tower.

Verena Bauer • 03/07/2025

Office space with people
Cushman & Wakefield brokers new space for IMAP in the Glückstein Quarter in Mannheim

The consulting firm IMAP M&A Consultants AG, which specialises in mergers and acquisitions, has rented approx. 580 m² of office space in the newly developed CBD area Glücksteinquartier in Mannheim, Glücksteinallee 25.

Verena Bauer • 30/06/2025

Women walking in hospital corridor
C&W supports Song Capital in refinancing transaction for healthcare portfolio in Germany

A 50/50 joint venture between two international investors, established in 2018, has refinanced its expiring seven-year loan agreement at a fixed interest rate of 5.1%. 

Verena Bauer • 30/06/2025

INSIGHTS

Modern dining room with colourful chiairs and hanging lights
Insights

Regulation in the German Housing Market

Update for Investors: What legal changes will the new federal government bring?

Jan-Bastian Knod • 24/06/2025
Rethinking European Offices
Insights

Rethinking European Offices

Our report “Rethinking European Offices” examines at the risk of obsolescence in 16 key European cities. The findings reveal that the majority of Europe's office real estate stock is at risk of becoming obsolete by 2030.
18/12/2024
Cushman & Wakefield Investment Atlas 2024
Insights

The Investment Atlas Q3 2024

Your Strategic Compass in the World of Commercial Real Estate Investment
05/11/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS