2022-04-21-莱坊-Munich_Office_Spotlight_Q1_2022_4页_288kb

Munich Office Market Q1 2022 Overview

Key Metrics

The Munich office market experienced a strong start to the year with a take-up of 191,400 square meters, marking a 93% increase from the previous year. The vacancy rate declined to 4.9%, and prime rent settled at €42.00 per square meter per month, reaching historically high levels due to sustained high demand, particularly in inner city areas.

Completions and Supply

In Q1 2022, 25,000 square meters of office space were completed. An additional 500,000 square meters are currently under construction and are expected to be completed throughout the year, contributing to existing supply figures.

Submarket Analysis

Munich's office market consists of five submarkets:

• CBD: Rental range €24.00-€42.00, 18,000 sqm vacant, vacancy rate 2.3%, under construction 33,500 sqm.
• City Center: Rental range €20.50-€35.00 (note: specific segments listed, e.g., East at €30.50, HBF at €42.00), varying vacancy rates and completions.
• City Area: Broader area with rental range €12.50-€23.50, 373,000 sqm vacant, vacancy rate 4.2%, and under construction 423,600 sqm.
• Periphery: Rental range €9.00-€17.00, 438,000 sqm vacant, vacancy rate 8.8%, and lower planned completions.

Outlook

The leasing market showed continued strong activity, with expectations for exceeding last year's performance. Demand remains high, suggesting a decrease in vacant space, especially in inner city locations, maintaining prime rents at elevated levels.

Knight Frank monitors these trends for informed client guidance.