Munich, January 12, 2026 – The Munich office leasing market concluded 2025 with significantly increased dynamics in the final quarter, according to Cushman & Wakefield. After a year largely characterized by extended decision-making processes, intense scrutiny during space searches, and selective demand, the fourth quarter brought a noticeable revitalization with a transaction volume of 158,900 m², primarily due to a more stable propensity to conclude deals and several larger leases.
Stronger Q4 Drives Annual Performance
“The fourth quarter demonstrated that Munich possesses a resilient demand base despite challenging conditions. Key factors at year-end were a higher willingness to close deals, the increased presence of innovative industries, and the pressure to secure high-quality, ESG-compliant spaces, especially in central locations,” says Matthias Hofmann, Head of Regional Branch Management Germany and Head of Office Agency Munich at Cushman & Wakefield.
The transaction volume in the Munich office leasing market reached approximately 158,900 m² in the fourth quarter of 2025, making it a significant driver of the annual balance. For the full year 2025, office space turnover amounted to around 560,500 m², which is about 7 percent below the previous year’s figure (2024: 605,200 m²). Compared to the 5-year average (617,700 m²), this represents a decrease of 9 percent, and against the 10-year average (738,700 m²), the space turnover is about 24 percent lower. Despite the slight decline, the result confirms Munich’s structurally high importance as one of Germany’s most stable office leasing markets, supported by a broad industry mix with four sectors exceeding the 10 percent market share mark, and continued strong demand for space in established submarkets. The CBD and the city center combined accounted for approximately 60 percent of the space turnover in 2025.
Significant Leases Above 5,000 m²
More than 30 percent of the space turnover in 2025 was attributable to deals above the 5,000 m² mark. Cushman & Wakefield was involved in several market-defining transactions, including a lease of 12,900 m² in the TOMORROW project in the Werksviertel, as well as deals by Penguin Random House for 11,700 m² in the “SUN” property on Levelingstraße and a financial institution for 5,600 m² in the “ARTrium” in the Old Town.
Prime Rents Remain High, Average Rents Increase
Rent development remained at a high level throughout 2025. The prime rent in the fourth quarter was 55.00 Euro/m², showing a sideways movement at year-end. Year-on-year, the prime rent increased from 53.00 Euro/m² in 2024 to 55.00 Euro/m² in 2025, an increase of 3.8 percent.
The average rent significantly increased over the year due to the aforementioned large-scale, above-average priced deals: at the end of 2025, it stood at 26.90 Euro/m², about 7 percent above the previous year’s value (2024: 25.20 Euro/m²). This confirms the continued willingness to pay for modern, efficient spaces, especially in central, established submarkets and for ESG-compliant properties with high-quality amenities.
Two-Tier Market: Quality and Location Remain Key
At the end of 2025, office vacancy in Munich amounted to approximately 1.79 million m². The vacancy rate was 8.2 percent, an increase of about 0.8 percentage points compared to the previous year (end of 2024: 7.4 percent).
Matthias Hofmann states: “While high-quality spaces in good locations continue to find tenants, the supply is increasing, especially for spaces that are no longer marketable and properties in need of modernization. Overall, the market remains two-tiered: spaces in sought-after premium products remain scarce, while secondary qualities face greater leasing pressure. Only about one third of the total vacancy is accounted for by the CBD and the city center.”
The completion volume for the full year 2025 amounted to a total of 194,900 m², which is 17 percent less than in the previous year. Of these spaces, 29 percent are still available to the market in the short term.
Outlook for 2026: Moderate Recovery Expected
“For 2026, a continuation of the moderate recovery is likely in Munich under more stable conditions. Demand remains fundamentally intact, and the market will continue to be strongly shaped by user requirements for quality, flexibility, and ESG standards. Especially in prime locations and for high-quality spaces, timely lettings are still expected with appropriate product availability, while owners in secondary locations and properties will have to create competitive advantages through incentives, Capex, and repositioning,” says Matthias Hofmann regarding the outlook.
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 52,000 employees in 400 offices and 60 countries. In 2024, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on X.
Source: Cushman & Wakefield
