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.
Uncertainties dampen investments in office real estate
Development since 2023
According to JLL, only €5.3 billion was invested in office real estate in 2023—an 81% decline compared to the previous year (€22.3 billion).
In 2024, the volume stagnated, and in the first nine months of 2025, investments were down another 8% year-on-year at €3.9 billion.
This reduces the share of office properties in the overall commercial market to 18% —behind residential, logistics, and retail properties.
Causes and market factors
- Weak economy in Germany
- Increased financing costs
- End of the low interest rate phase
According to BNP Paribas Real Estate, the expected yield compression in 2025 did not materialize.
Prime yields in A locations are 4.2% (Munich) and 4.5% (Frankfurt, Düsseldorf).
However, interest from international investors rose significantly: from 9.2% (2024) to 26.2% (2025). The proportion of large transactions exceeding €200 million also almost doubled (26.4%).
Rental market: slight recovery
Space turnover in A cities
The market stabilized in 2024: the rental volume in the office strongholds was 2.66 million m² (+2%).
The trend continued in 2025, with 2.0 million m² (+3.4%) over the course of the year.
Leaders:
- Frankfurt am Main: 501,000 m² (+60%)
- Munich: 408,000 m² (−8%)
- Berlin: 362,000 m² (−14%)
Vacancies rose to 8.43 million m².
- Düsseldorf: 11.7%
- Frankfurt: 11.1%
- Berlin: 8.4%
- Munich: 8.1%
- Hamburg: 6%
Prime rents:
- Munich: €55/m²
- Frankfurt: €54/m²
- Berlin: €47/m²
- Düsseldorf: €19.90/m²
- Hamburg: constant €36/m², average €22.50/m² (+9%).
Future of the office property market
Economic outlook
According to forecasts by leading economic institutes (September 2025), GDP will grow by 0.2% in 2025 and 1.3% in 2026. Companies are acting cautiously, reviewing their space requirements and personnel structures. In addition, working from home and AI are influencing the number of office workstations required.
Flexible office solutions
Flexible offices are gaining in importance.They offer space and services that are available at short notice – especially for small and medium-sized enterprises.The trend is continuing, driven by digitalization and the desire for flexibility.
Project development in transition
High interest rates, construction costs, and uncertainties are slowing down project developments. In 2025, only 475,000 m² of new office space was completed – most of it pre-let (up to 60%).
Sustainable use of existing buildings and differentiated location 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 the investment volume (2020: 34%). This is due to ESG requirements, CO₂ taxes, and EU directives on energy efficiency.
According to CBRE, certified buildings achieve:
- 6% higher rents,
- 2% lower vacancy rates.
Advantages: lower operating costs, better reputation, and higher 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.