Office market Munich

SOLID START TO THE YEAR:  RESULT ABOVE PREVIOUS YEAR, BUT BELOW AVERAGE

• The Munich office market started 2024 with a pleasing first interim result: With take-up of around 140,000 m², the result did not match the ten-year average (-21 %), but the previous year's volume was exceeded (+17 %), reflecting the slight improvement in the economic outlook compared to 2023.
• Compared to the top office markets in terms of take-up, the Bavarian capital thus defended its second place just behind Berlin (146,000 m²) and ahead of Frankfurt (119,000 m²). Overall, market momentum in Munich, as in some other top markets, has increased slightly compared to the previous year, although it has not reached its long-term average.
• The distribution of take-up by size category is characterized by an even demand structure, with extensive market activity in both the small segment up to 2,000 m² (a good 47 %) and medium-sized units between 2,000 and 5,000 m² (just under 33 %) as well as large contracts for over 5,000 m² (almost 20 %). In terms of large contracts above the 10,000 m² mark, two large-volume lettings in new-build projects are worth mentioning: Bayerische Allgemeine Versicherung in "The Source" in Obersendling and DMG MORI Global Marketing in the "Go Four It" neighborhood in Moosach. 
• The development of rents has also been dynamic: At currently €52/m² (+13% compared to Q1 2023), the prime rent passed the €50/m² mark for the first time at the beginning of the year.

Read the full report by downloading the PDF document.