Office properties – market, trends, and outlook
The importance of office properties in the economy
Office properties are the most important asset class among commercial real estate. Their development is considered an indicator of the overall economic situation. They traditionally play a major role at EXPO REAL: all market players are represented, from project developers and investors to facility managers and users.The trade fair highlights current trends, technologies, and user needs that are shaping the transformation of office properties.
The transformation of office property
New working environments and room concepts
The classic image of the office with fixed desks has changed significantly. In the past, cubicle offices and open-plan offices dominated. Today, flexible concepts shape the working environment:
- Group offices for teamwork,
- Cubicle offices for concentrated work,
- Open-space and multi-space concepts that combine different work zones.
“Non-territorial working” – i.e., free choice of seating instead of fixed desks – enables more efficient use of space. Employers save on unused workspaces, while employees enjoy flexible working locations.
Social demands and new requirements
Younger generations expect offices to offer social, creative, and athletic activities. Companies are responding with relaxation areas, fitness rooms, and communal zones—a decisive factor in the competition for skilled workers.
The market for office properties
Diversity and structure
The market ranges from modern, state-of-the-art new buildings in city centers to renovated old buildings or combined uses with restaurants and retail outlets.
In the past, the user was often also the owner. Today, investors dominate, which has led to office properties becoming much more important as capital investments.
Decline in Office Investments
Development Since 2023
According to JLL, only €5.3 billion was invested in office real estate in 2023—a decline of 81% compared to the previous year (€22.3 billion).
In 2024, the volume stagnated and rose to €6.2 billion in 2025. According to CBRE, investments totaled €3.5 billion in the first half of 2026. As a result, office real estate has once again moved to the top of the list of commercial real estate investments.
Causes and Market Factors
- Weak Economy in Germany
- Increased financing costs
- End of the Low-Interest-Rate Period
According to BNP Paribas Real Estate, yields did not change as expected in 2025.
Prime yields in A-class locations stand at 4.2% (Munich), followed by Berlin and Hamburg at 4.36%.
However, interest from international investors rose significantly: from 16.1% (2024) to 28.4% (2025). Just over half of the investments were in the range of €25 million to €100 million. Only slightly less than a quarter of the investments exceeded that amount.
Rental Market: Slight Recovery
Rental Space Turnover in Tier-A Cities
In 2024, the market stabilized: The leasing volume in the office hubs stood at 2.66 million square meters (+2%).
According to CBRE, Germany’s top five office markets recorded 2.23 million m² in office space take-up in 2025—a slight decline of 2% compared with 2024. In the first half of 2026, Germany’s top five office leasing markets recorded a total of 1.13 million m² in space take-up. This was 6.1% less than in the same period of the previous year, with the first quarter of 2026 in particular proving to be very weak (516,000 m²—a 15% decline compared to the first quarter of 2025).
Top Performers (Second Half of 2026):
- Berlin: 373,000 m² (+51% compared to the previous year)
- Munich: 335,000 m² (+38%)
- Hamburg: 177,000 (-33%)
- Frankfurt am Main: 173,000 m² (−57%)
Vacant space rose to 9.1 million square meters. The average vacancy rate thus increased to 8.5%
- Düsseldorf: 12.4%
- Frankfurt: 11.8%
- Berlin: 9.6%
- Munich: 8%
- Hamburg: 6.5%
Top Rents (First Half of 2026):
- Munich: 59.50 €/m²
- Frankfurt: 57 €/m²
- Berlin: 47 €/m²
- Düsseldorf: 46 €/m²
- Hamburg: 39 €/m²
The Future of the Office Real Estate Market
Economic Outlook
According to the Federal Statistical Office, the German economy grew by 0.2% in 2025. Based on forecasts by leading economic institutes (mid-2026), GDP is expected to grow by between 0.4% and 0.8% in 2026.
Companies are proceeding cautiously, reviewing their space requirements and staffing structures.
In addition, remote work and AI are influencing the number of office workstations needed.
Flexible Office Solutions
Flexible offices are gaining in importance.
They offer space and services that are available on short notice—especially for small and medium-sized businesses.
This trend is continuing, driven by digitalization and the desire for flexibility.
Project Development in Transition
Rising interest rates, high construction costs, and economic uncertainties are slowing down project development.
In 2025, only 475,000 m² of new office space was completed—most of which was pre-leased (up to 60%). According to forecasts by BulwienGEsa, completions will continue to decline.
A sustainable approach to existing buildings and detailed site analyses are becoming increasingly important for investors.
Attractiveness and Sustainability
Focus on Green Buildings
In addition to location, sustainability is becoming a key value driver.
In 2022, certified buildings accounted for 46% of investment volume (2020: 34%).
This is due to ESG requirements, CO₂ taxes, and EU energy efficiency directives. Green buildings accounted for approximately 40% of new leases in the first half of 2025.
According to a 2023 study by CBRE, certified buildings achieve
- Rents
are 7% higher, and vacancy rates are lower.
Advantages: lower operating costs, a better reputation, and greater market liquidity.
Trends and challenges
Market and user trends
- Home offices reduce space requirements in the long term.
- Location quality and accessibility are becoming increasingly important.
- Employees expect service offerings, mobility solutions, and social spaces.
- Sustainability is becoming a must-have – even for renovations of existing buildings.
Flexible contracts and working models
Companies prefer shorter terms and agile rental models. Flex office operators offer offices that include services, community spaces, and infrastructure. Although prices are 10–15% higher, the model is growing dynamically.
Adapting existing buildings and repurposing
Sustainable renovation instead of new construction
Many older office buildings need to be adapted to new energy and ESG standards. Demolition is often not an option due to the “gray energy” tied up in buildings. Therefore, repurposing (e.g., into residential space) is becoming the focus.
Asset managers are faced with the task of identifying potential for value enhancement and implementing the right adaptation strategies.
Conclusion – Office real estate between adaptation and realignment
The office property market will undergo structural change in 2025. Economic uncertainty, new ways of working, and ESG requirements are changing the rules of the game. Flexibility, sustainability, and location quality will become the key success factors for investors, developers, and users.
What does EXPO REAL have to offer in the office property segment?
Exhibtiors dealing with office real estate form the largest group at the international trade fair for property and investment. The spectrum ranges from planners and architects, project developers, project managers and building technicians to financiers and investors, consultants and brokers, and facility and property managers responsible for smooth operations. All major players in the office property market are represented at EXPO REAL in Munich, as are the locations where office properties exist or are being developed.