WEAK RESULT DESPITE A STRONGER FINAL QUARTER
Take-up of 467,000 m² was reported for the Munich office market at the end of 2023. As a result, the previous year's take-up was missed by around 37% and the 10-year average remained unattained (-36%). In the slipstream of the weak economic development, increased financing costs and ongoing discussions about home office quotas, the Munich market never really gained momentum until the end of the third quarter. Only towards the end of the year letting activity increase noticeably to 143,000 m², driven by two of the three largest contracts of the year, totalling 9,700 m² and 9,300 m² respectively. The absence of the large deals with significantly more than 10,000 m² of office space that are typical for Munich is remarkable. At 10,500 m², DGB is responsible for the largest contract signed in 2023 with its owner-occupier letting.