2023-07-24-莱坊-Munich_Office_Spotlight_Q2_2023_4页_3mb

Munich Office Q2 2023 Summary

Overview

• In Q2 2023, Munich's office market experienced subdued activity with total transactions of 118,900 m², representing a nearly 40% decline from the same period in 2022.
• Prime rent reached a new all-time high of €46.00/m²/month, up 8% over the last 12 months.
• The vacancy rate increased by 300 basis points to 5.7%, the highest level since 2014.

Key Trends

• Low take-up persists due to restrained demand.
• Supply remains stable, with completions expected around 6%.
• Submarket variations exist, with prime locations like Old Town having higher rental rates (€38.00–46.00/m²/month) and lower vacancy, while peripheral areas have lower rates (€9.50–18.50/m²/month).

Outlook

• For H2 2023, demand is expected to stay weak, leading to a potential miss of previous year's performance.
• Prime rent is projected to continue rising, particularly in central locations, while supply holds steady.