According to Cushman & Wakefield, the Munich office rental market ended 2025 with significantly increased momentum in the final quarter. After market activity had been characterised for much of the year by lengthy decision-making processes, combined with a high level of scrutiny in the search for space and selective space requirements, the fourth quarter saw a noticeable upturn with a turnover volume of 158,900 m² – in particular due to a more stable overall propensity to conclude deals and a number of larger leases.
‘The fourth quarter showed that Munich has a resilient demand base despite challenging conditions. The decisive factors at the end of the year were, above all, a greater willingness to conclude deals, the increased presence of innovative industries and the pressure to secure high-quality, ESG-compliant space, especially in central locations,’ says Matthias Hofmann, Head of Regional Branch Management Germany and Head of Office Agency Munich at Cushman & Wakefield.
Space turnover: Final quarter significantly stronger than previous quarters – Full year still slightly below previous year
In the fourth quarter of 2025, the volume of office space let in Munich amounted to around 158,900 m². This made the final quarter a key driver of the annual figures.
For 2025 as a whole, office space take-up amounted to around 560,500 m², which was around 7 per cent below the previous year's figure (2024: 605,200 m²). Compared to the 5-year average (617,700 m²), this represents a decline of 9 per cent, while compared to the 10-year average (738,700 m²), space turnover is down by around 24 per cent. Despite the slight decline, the result confirms Munich's structurally high importance as one of the most stable German office rental markets – supported by a broad mix of sectors with four sectors accounting for market shares above the 10 per cent mark and continued strong demand for space in established submarkets. The CBD and the city centre together accounted for around 60 per cent of space take-up in 2025.
More than 30 per cent of space take-up in 2025 was attributable to deals above the 5,000 m² mark. Cushman & Wakefield was involved in several market-defining transactions, including a 12,900 m² lease in the TOMORROW project in the Werksviertel district, as well as deals for Penguin Random House in the ‘SUN’ property with 11,700 m² in Levelingstraße and a financial institution with 5,600 m² in the ‘ARTrium’ in the old town.
Prime rents remain stable at a high level – high-priced contracts drive up average rents
Rent prices remained at a high level overall in 2025. The prime rent stood at £55.00/m² in the fourth quarter, showing a sideways movement at the end of the year. In a year-on-year comparison, however, the prime rent rose from £53.00/m² (2024) to £55.00/m² (2025), an increase of 3.8 per cent.
The average rent rose noticeably over the course of the year due to the aforementioned large-scale transactions at above-average prices: at the end of 2025, it stood at €26.90/m², around 7 per cent above the previous year's figure (2024: €25.20/m²). This confirms the continuing willingness to pay for modern, efficient space – especially in central, established submarkets and for ESG-compliant properties with high-quality fittings.
A divided market: High quality and prime locations remain highly attractive – opportunities for B locations and properties through repositioning
At the end of 2025, the office space vacancy rate in Munich stood at around 1.79 million square metres. The vacancy rate was 8.2 per cent, around 0.8 percentage points higher than in the previous year (end of 2024: 7.4 per cent).
Matthias Hofmann: "While high-quality space in good locations continues to find takers, supply is increasing, especially for space that is no longer marketable and properties in need of modernisation. Overall, the market thus remains divided: space in sought-after premium products remains scarce, while secondary qualities are coming under greater pressure to let. Only around one-third of the total vacancy rate is attributable to the CBD and the city centre."
The completion volume for 2025 as a whole amounted to a total of 194,900 m², which is 17 per cent less than in the same period last year. Of this space, 29 per cent is still available to the market in the short term.
"In Munich, the moderate upturn is likely to continue in 2026, provided that conditions remain stable. Demand remains fundamentally intact, while the market will continue to be strongly influenced by user requirements in terms of quality, flexibility and ESG standards. In prime locations and for high-quality space in particular, rentals are expected to continue at a rapid pace if suitable products are available, while owners in secondary locations and properties will have to work harder to create competitive advantages through incentives, capex and repositioning," says Matthias Hofmann, outlining his outlook.
