20250210-莱坊-Munich_Office_Spotlight_Q4_2024_5页_4mb

Munich Office Market Q4 2024 Summary

• Leasing Market Performance: Munich's office market remained stable in 2024, with Q4 recording a high take-up of 159,000 sqm, totaling 605,000 sqm annually—a 30% increase from 2023. Prime rents rose 14% to €53.50/sqm, while vacancy rates hit 7.1%. Industrial and ICT sectors drove demand, with large transactions such as the Technical University of Munich leasing 19,300 sqm. Small to mid-sized leases accounted for 45% of total volume.

• Investment Market: Investment activity surged in 2024 with a €2.5 billion volume, a 108% year-on-year increase primarily fueled by the retail sector (notable transactions exceeding €100 million). The office sector contributed €466 million, still below long-term averages, but showed signs of recovery in Q4.

• Market Outlook: Leasing activity is expected to increase modestly, with prime rents continuing to rise due to premium space shortages. However, vacancy rates may rise further, particularly in peripheral submarkets. Economic factors, including potential government policies and interest rate changes, could influence future market dynamics, with Munich maintaining its position as a top office market.

• Key Trends: High demand for premium locations contrasts with supply issues; under-construction office space is decreasing, but peripheral areas face oversupply risks. Retail dominance in investment highlights shifting market preferences.