2023-07-26-莱坊-European_Office_Dashboard_-_Munich_Q2_2023_2页_540kb

Summary of Office Market and Economic Indicators Report (Q2 2023)

Office Market Performance

• Take-up and Demand: Total office take-up across the region reached 118,900 square meters in Q2 2023. For H1 2023, the cumulative take-up is 239,100 sqm, representing a 40% decrease from H1 2022.
• Vacancy Rate: The vacancy rate increased to 5.7% in Q2 2023, a 12% year-on-year rise, reaching levels not seen since over 9 years.
• Prime Rent: Prime rent hit a new high of €552 per square meter per annum in Q2 2023, up 8% compared to Q2 2022. Current expectations indicate continued rent growth.
• Construction Activity: H1 2023 saw 191,300 sqm of office construction completions, surpassing the H1 2022 level and exceeding the 5-year average. Approximately 800,000 sqm of stock is expected to be delivered in 2024-2025.

Economic Indicators (Germany)

• Unemployment Rate: Unemployment edged up to 5.7% in June 2023 after a 10bps increase, with potential minor further rises, though broad-based job cuts are not expected. The rate slowed from earlier peaks in late 2021.
• New Business Activity: New business starts were robust in late 2021 to early 2022 but weakened subsequently, with H1 2023 preliminary figures above the five-year average.
• Services Employment Expectations: In the German services sector, employment expectations index stood at 8.2 in June 2023, below the long-term average but above contraction levels seen in 2020.
• Services PMI: The services Purchasing Managers' Index (PMI) in Germany indicated expanding activity in Q2 2023 (65), suggesting positive growth trends, with tourism being a standout performer.

Contact Information

• Local Office Occupier Contact: Dennis Beißer (dennis.beisser@knightfrank.com, +49 89 83 93 12 190)
• Local Research Contact: Viktoria Reiser (viktoria.reiser@knightfrank.com, +49 89 83 93 12 122)
• Head of Occupier Strategy & Solutions EMEA: Colin Fitzgerald (colin.fitzgerald@knightfrank.com, +44 20 7861 1203)