Cushman & Wakefield reports a cautiously stable start to 2026 for the Hamburg office leasing market. Take-up in the first quarter exceeded the 100,000 sq m threshold at around 100,400 sq m, but was approximately 9 percent below the comparable figure for the previous year.
Large-scale lettings remain the exception
In the first quarter of 2026, total take-up from new lettings and owner-occupiers amounted to 100,400 sq m, around 9 percent less than in the same period last year. Owner-occupier deals accounted for approximately 14 percent of total take-up. Despite the decline in take-up, market activity measured by the number of transactions increased significantly: 140 deals were recorded, comprising new lettings and owner-occupier transactions, representing a 40 percent increase year-on-year. In terms of take-up, this points to a highly fragmented demand structure. Only one transaction exceeded the 10,000 sq m threshold, attributable to the owner-occupier deal marked by the groundbreaking for MSC. Overall market activity was driven primarily by small and medium-sized units, while larger lettings continued to be implemented only selectively. From a size of 3,000 sq m upwards, only a handful of transactions were recorded, with numbers remaining in the single digits.
As a result, take-up remained below long-term benchmarks for first quarters: it fell short of the five-year average by almost 9 percent and the ten-year average by around 15 percent.
“The statistical figures for the first three months indicate that companies remain active, but are making their space decisions more cautiously and selectively,” emphasizes Vera Passade, Head of Office Agency Hamburg at Cushman & Wakefield.
At the beginning of 2026, the largest share of take-up was attributable to the “Industry, Transport and Logistics” sector, which accounted for around 27,000 sq m or 27 percent of total volume. As in the first quarter of 2025, this sector once again led the ranking. It was followed by technology, media and telecommunications with approximately 13,400 sq m (13 percent), and consultancy firms with around 7,000 sq m (7 percent).
In terms of submarkets, the city centre recorded the highest take-up in the first quarter of 2026 at 25,500 sq m, corresponding to a 25 percent share. City Süd followed with 18,600 sq m (19 percent) and HafenCity with 16,800 sq m (17 percent). This underlines the continued strong demand for office space in central locations.
One of the most notable transactions in the first quarter of 2026 was InnoGames’ letting of around 8,100 sq m in the “N50” development project in City Süd. On the owner-occupier side, particular mention should be made of the development of MSC’s German headquarters, which is currently delivering around 12,800 sq m of office space in HafenCity.
Prime rent stable, average rent slightly softer
Rental levels showed a mixed development at the start of 2026. Prime rent remained stable at €37.00 per sq m and was therefore 4.2 percent above the previous year’s level. By contrast, the weighted average rent eased slightly to €21.85 per sq m, representing a marginal year-on-year decline of 0.2 percent.“The ongoing focus on high-quality office space with modern specifications continues, as illustrated by InnoGames’ leasing in the N50 project. High-quality space in central locations continues to support prime rents, while average rents have softened slightly against the backdrop of increasingly selective demand,” adds Vera Passade.
Vacancy edges up – sublease space increases
At the end of the first quarter of 2026, vacancy increased slightly. The vacancy rate rose by 20 basis points quarter-on-quarter and by 80 basis points year-on-year to 6.6 percent, equating to around 943,300 sq m. With 70,300 sq m, short-term available sublease space continues to represent a relevant component of market supply.
As of the end of March 2026, approximately 441,900 sq m of office space was under construction. Of this, 216,500 sq m remains available, corresponding to a pre-letting rate of around 51 percent.
Completions in the first quarter of 2026 totalled around 41,000 sq m, of which approximately 44 percent is currently available. Several project completions contributed significantly to this figure, including the “Holstenwallpalais” in the city centre with around 11,200 sq m of office space, the “Überseehaus” including its extension in the harbour fringe submarket (also around 11,200 sq m), and the “Westwerk” in Bahrenfeld, comprising buildings 1 to 5, with around 5,100 sq m of office space.
“The rising vacancy rate and the growing supply of sublease space are expanding the offer side of the market. More than 40 percent of sublease space meets modern standards, i.e. new-build properties or space refurbished to new-build specifications with high-quality fit-outs. Modern office space therefore remains in strong demand. As most projects currently under construction are largely pre-let, the development pipeline is generating only limited additional supply pressure,” concludes Vera Passade.
