The Munich office leasing market gained significant momentum in the second quarter of 2026. According to Cushman & Wakefield, office take-up between April and June 2026 totaled approximately 190,000 sq m, an increase of 55% year-on-year (Q2 2025: 122,700 sq m). For the first half of 2026, total office take-up reached 329,200 sq m, representing a 26% increase compared with the same period last year.
“The Munich office leasing market demonstrated strong momentum both in the second quarter and across the first half of 2026. This performance was driven not only by a single large transaction, but also by robust market activity across a wide range of lease sizes,” said Matthias Hofmann, Head of Regional Branch Management Germany and Head of Office Agency Munich at Cushman & Wakefield.
Broad Market Activity and Major Transaction Shape Strong Quarter
With office take-up of 190,000 sq m in Q2 2026, the Munich office leasing market significantly outper-formed the solid start to the year. Compared with Q1, leasing activity increased by more than 36%. The result was also strong from a long-term perspective, with quarterly take-up standing approximately 31% above the 10-year average, underlining the sustained dynamism of the Munich market.
This brings total office take-up in the first half of 2026 to 329,200 sq m. The half-year result is 26% above the same period last year, 15% above the five-year average, and only 5.3% below the 10-year average. Alongside Berlin, Munich is one of only two German office markets to have recorded notably positive per-formance so far this year.
The positive development was driven by a high number of transactions in the small and mid-sized seg-ments as well as one major owner-occupier deal. The largest transaction of the second quarter was the signed expansion of Apple’s site at Seidlstraße 15–19, totaling more than 29,000 sq m. Additional trans-actions exceeding 5,000 sq m included:
- Siemens at the Science Center on Friedrich-Ludwig-Bauer-Straße – approximately 6,750 sq m
- Alphalignis at Südlicht – approximately 6,450 sq m
- Analog Devices at the Highlight Towers – approximately 5,380 sq m
While the Apple transaction provided an additional boost, market activity was not solely dependent on this exceptional deal. In total, 195 transactions were recorded in Q2. For the first half of the year, the number of deals remained virtually unchanged year-on-year (295 transactions in H1 2026 versus 291 transactions in H1 2025). However, the significantly higher take-up volume indicates that the average deal size increased compared with last year.
The vast majority of take-up continued to come from leasing activity. Of the approximately 190,000 sq m recorded in Q2, around 150,000 sq m resulted from lease agreements, while owner-occupier transactions accounted for roughly 40,000 sq m, with most of that attributable to Apple’s expansion.
From a sector perspective, the Information & Communication Technology (ICT) and industrial sectors were the primary drivers of market activity. Together, they accounted for more than half of total take-up in Q2, representing over 27% and nearly 26% respectively. The quarter’s largest transactions clearly reflect this dominance.
“The consistently high number of transactions demonstrates that demand for office space in Munich is not dependent on just a few large requirements. At the same time, the larger deals show that companies re-main willing to commit to significant real estate decisions when there is a clear location and occupancy strategy,” Hofmann added.
Prime and Average Rents Continue to Rise
Prime rents continued their upward trajectory in Q2, reaching €57.00 per sq m per month. This represents an increase of 1.8% quarter-on-quarter and 3.6% year-on-year.
Average rents also recorded further growth, standing at €27.55 per sq m per month at the end of Q2. This corresponds to an increase of 1.7% compared with the previous quarter and 3.0% compared with Q2 2025.
Rental growth continues to be driven by demand for modern, high-quality and well-connected office space. Lettings in central locations such as Altstadt and Maxvorstadt are providing particular support to rental levels.
At the same time, the market remains highly segmented. While premium office space featuring modern specifications, ESG-compliant standards and flexible layouts continues to attract strong demand, older stock requiring refurbishment is facing increasing pressure.
“Rental development shows that quality continues to command a premium in Munich. Occupiers are fo-cusing on office space that supports modern working models, offers excellent accessibility and meets long-term ESG requirements. Demand for these products remains strong,” Hofmann explained.
Vacancy Continues to Rise – Quality Determines Letting Prospects
Munich’s office vacancy stock increased to approximately 2.01 million sq m at the end of Q2 2026. As a result, the vacancy rate rose to 9.2%, up 40 basis points quarter-on-quarter and one percentage point year-on-year.
The continued rise in vacancy primarily reflects an ongoing process of market differentiation. Changing workplace models, closer scrutiny of actual space requirements, and increasing demands relating to sustainability, building quality and flexibility mean that not all space vacated by occupiers can be reabsorbed immediately.
Properties that only partially meet current occupier requirements continue to face elevated leasing pres-sure. In contrast, modern buildings with strong locations, advanced technical specifications and ESG-compliant characteristics enjoy better absorption prospects.
As such, the Munich office market is not experiencing a broad-based weakness in demand, but rather an increasing differentiation based on asset quality.
Construction completions remained elevated in Q2, totaling 86,300 sq m. For the first half of the year, completions reached 172,000 sq m, representing volumes 29% above the five-year average and 37% above the ten-year average.
A further 697,800 sq m of office space is currently under construction, with a 36% pre-letting rate. Key projects scheduled for completion in 2026 and 2027 include:
- Google Campus, Arnulfstraße – approximately 33,500 sq m of office space
- LOVT Vision, Werksviertel district – nearly 48,000 sq m of office space
“Despite rising vacancy levels, Munich remains one of Germany’s most dynamic office leasing markets. The key challenge is not fundamental demand, but the marketability of the available space. Owners of older properties will increasingly need to differentiate themselves through investment, flexibility and clear mar-ket positioning,” Hofmann concluded.
