Hanjo TheissNew High-Rise Study Reveals Continued Flight-to-Quality Trend, Strong Pre-Leasing Rates, and Stable Demand for High-Rise Office Space
Cushman & Wakefield’s latest High-Rise Study on the development of Frankfurt’s office tower market confirms a clear trend in the office sector: companies are increasingly favoring modern, high-quality high-rise buildings. The analysis of 59 office towers comprising approximately 2.0 million sq m of office space demonstrates that a pronounced “flight to quality” has become firmly established within Frankfurt’s high-rise office segment.
Modern High-Rises Benefit from Occupier Demand
The analysis of known tenant movements through 2030 clearly shows that demand is concentrated in modern buildings. Nearly two-thirds of all lease transactions recorded through 2030 are attributable to high-rise buildings completed since 2021 or scheduled to enter the market by 2030. Buildings completed between 2021 and 2025 alone account for 45% of all leasing activity expected through 2030, while a further 19% is allocated to developments completed from 2026 onwards.
In contrast, older office towers are disproportionately losing tenants. Buildings completed between 1991 and 2010 account for 61% of all documented move-outs through 2030.
This development highlights the growing demand for modern, ESG-compliant, and high-quality office space.
Hanjo Theiss, Head of Office Agency & Office Sector Germany at Cushman & Wakefield, commented:
“The study confirms the continuing flight-to-quality trend in Frankfurt’s office market. While older existing buildings are coming under increasing competitive pressure, demand is concentrating on modern office towers offering superior space quality, contemporary specifications, and strong ESG credentials. The fact that a large proportion of occupiers remain within the high-rise segment and that new developments achieve significant pre-leasing levels long before completion underscores the long-term attractiveness of this market segment.”
Once in a High-Rise, Often Staying in One
Another key finding of the study is the strong loyalty occupiers show toward the high-rise segment. More than 500 recorded tenant movements reveal that many companies relocate within Frankfurt’s high-rise market while continuing to choose high-rise buildings as their preferred location.
Banks, financial institutions, international law firms, consulting firms, and institutional occupiers in particular tend to remain committed to the building type, predominantly seeking modern high-rise space when optimizing their office footprint or relocating.
Tenants identified in the study, including ING DiBa, Allen & Overy, and Lincoln International, confirm another important market trend: companies already located in a high-rise building frequently choose another high-rise property when relocating.
Banks and Financial Services Continue to Shape the Market
Frankfurt’s high-rise market continues to be dominated by banks and financial institutions. They currently occupy 47% of all leased office space, making them by far the largest occupier group. Law firms follow with 13%, while consulting firms account for 12%.
The largest occupiers of high-rise office space include the European Central Bank, Deutsche Bundesbank, Deutsche Bank, Commerzbank, and PwC.
Future leasing activity is also expected to be driven primarily by financial institutions, consulting firms, and professional services companies. Announced future tenants include Bloomberg, ING, KPMG, Commerzbank, Lincoln International, Franklin Templeton, Nomura, and Bank of New York Mellon.
Strong Pre-Leasing Rates Demonstrate the Appeal of New High-Rises
The study further shows that substantial portions of space in upcoming developments have already been leased before completion. Major occupiers have secured space at an early stage in projects such as CENTRAL PARX, Central Business Tower, and Fifty Five Westend.
The high pre-leasing rates achieved by these developments provide a strong indication of the segment’s attractiveness. They demonstrate that premium high-rise office space remains among the most sought-after products in Frankfurt’s office market and that companies are willing to commit to modern office space on a long-term basis.
Outlook: High-Rise Market Remains Attractive in the Long Term
Current vacancy in Frankfurt’s office towers totals 214,770 sq m, equivalent to a vacancy rate of 11.8%. With the completion of new high-rise developments and taking into account known lease commencements and move-outs, the vacancy rate is expected to rise temporarily to 14.8% in 2026 and 15.4% in 2027.
However, as newly delivered space is gradually absorbed, market conditions are expected to improve significantly. By 2028, the vacancy rate is forecast to decline again to 11.4%.
Frankfurt also offers considerable future development potential. By 2030, an additional 143,800 sq m of high-rise office space could be delivered. Between 2031 and 2040, the city has the potential to add up to 489,400 sq m of new high-rise office space.
Selected Office Towers Included in the Cushman & Wakefield High-Rise Study:
