According to Cushman & Wakefield’s analysis, the Cologne office leasing market recorded take-up of approximately 28,300 sq m in the second quarter of 2026. This represents a 36% decline year-on-year. Total office take-up for the first half of 2026 reached 72,600 sq m, also significantly below the comparable period of the previous year.
Office Take-Up Significantly Below Previous Year as Market Activity Remains Small-Scale
The Cologne office leasing market lost further momentum during the second quarter of 2026. Following a cautious but relatively solid start to the year, leasing activity weakened noticeably between April and June. Total take-up for the first half of 2026 amounted to 72,600 sq m, representing a 35% decrease compared with the same period in 2025 (111,700 sq m).
The market also underperformed in a long-term comparison. First-half take-up was 41% below the five-year average and 46% below the ten-year average. As a result, Cologne’s office market appears considerably more subdued at mid-year 2026 than it was a year ago.
The primary reason for the weak quarter was the absence of medium-sized and large-scale leasing transactions. While several larger deals supported the market in 2025, activity in Q2 2026 was largely driven by smaller transactions. No leases above 5,000 sq m were recorded, and transactions exceeding 1,000 sq m remained the exception during the quarter.
Commenting on the market, Mina Dadgostar, Head of Office Agency Cologne at Cushman & Wakefield, said: “The Cologne office leasing market entered a noticeably quieter phase in the second quarter. Many occupiers continue to scrutinize real estate decisions very carefully, particularly when it comes to larger requirements. This does not mean that demand is absent, but decision-making processes are taking longer and are increasingly influenced by economic uncertainties and internal workplace strategies.”
The largest transactions of the year to date were still recorded in the first quarter. Most notably, Deutsche Bank leased approximately 7,000 sq m in the Dominium building on Tunisstraße, which remains the only transaction above the 5,000 sq m threshold in 2026 so far.
Several transactions between 1,000 sq m and 5,000 sq m were also completed during the first half of the year, including the lease signed by Katholino for approximately 2,100 sq m on Josef-Lammerting-Allee, brokered by Cushman & Wakefield.
Prime Rent Stable, Average Rent Largely Unchanged
Prime office rent remained stable quarter-on-quarter at €33.00 per sq m per month. Compared with the same quarter last year, this represents a slight decline of 2.9%, or €1.00 per sq m.
Cologne’s rental growth remains more subdued than that of Germany’s top five office markets. However, this is less the result of downward pricing pressure in the prime segment and more a reflection of weak leasing activity in premium locations.
Average rent also remained broadly unchanged, standing at €20.60 per sq m per month at the end of Q2 2026. Year-on-year, this represents a marginal increase of 1.0%, or €0.20 per sq m.
The stable rental environment indicates that weaker market activity has not yet resulted in a broad decline in achievable rents. At the same time, the market currently lacks large, high-value leasing transactions that would typically exert upward pressure on both prime and average rents.
Occupiers are currently placing greater emphasis on well-connected, efficient, and flexible office space rather than premium representative locations at any cost.
Mina Dadgostar added: “Rental performance remains resilient despite weaker leasing dynamics. At the same time, we see occupiers carefully balancing quality, location, efficiency, and cost. Well-connected and flexible office space that supports modern workplace models while remaining economically viable continues to be particularly sought after.”
Vacancy Continues to Rise but Remains Moderate
Vacancy in Cologne’s office market continued its gradual upward trend during the second quarter of 2026. By quarter-end, the vacancy rate stood at 5.7%, an increase of 10 basis points compared with the previous quarter.
Total vacant office space amounted to approximately 489,850 sq m. Compared with Q2 2025, the vacancy rate increased by 0.4 percentage points.
While vacancy levels in Cologne remain moderate relative to other major German office markets, the upward trend is becoming increasingly apparent.
This development is largely driven by changing occupier requirements. Hybrid working models, greater space efficiency, and a more critical assessment of existing office footprints are leading companies to re-evaluate and, in some cases, reduce their space requirements.
Concluding her outlook for the market, Mina Dadgostar said: “We do not expect a sudden recovery in the second half of the year, although selective market improvements remain possible. The key factor will be whether existing larger requirements are ultimately converted into transactions. Cologne continues to benefit from a solid occupier base. In the short term, however, the market environment is likely to remain characterized by caution, longer decision-making processes, and a strong focus on efficient office space.”
