2023-05-04-莱坊-European_Office_Dashboard_-_Munich_Q1_2023_2页_538kb

Q1 2023 Occupier Market Dashboard Summary

Key Metrics

• TaKe Up: 120,200 SQM in Q1 2023, marking the third weakest quarterly result in the past 10 years.
• Prime Rent: €534 PSQM annually, up 6% year-over-year since Q1 2022.
• Vacancy Rate: 5.4%, an increase of 10 basis points from Q4 2022, and a 10% rise compared to Q1 2022.

Market Conditions

The Munich office market showed subdued activity in Q1 2023, with rising prime rents but weak take-up. Available office space increased moderately, contributing to higher vacancy. Demand for central locations remains strong despite overall uncertainty about economic conditions.

Economic Context

Q1 2023 data shows Germany's unemployment rate at 5.6%, with services PMI improving and supporting service activity growth.

Outlook

Prime rents are expected to continue rising, and the development pipeline indicates about 1.2 million SQM of new completions by 2025. Demand may remain subdued, but central locations see sustained interest. Source: Knight Frank Research and other sources.