Overview

• Office vacancy across Germany’s seven largest cities reached 7.7 percent in the second quarter of 2025, the highest level since 2013, JLL reports.
• Leasing volumes rose nine percent year-on-year in the first half of 2025 to about 1.4 million square meters, with a majority of deals representing lease renewals.
• Frankfurt’s leasing soared by 86 percent on the back of major finance-sector deals involving Commerzbank and ING, contrasting with a 19 percent drop in Berlin.
• Higher interest rates, US tariff uncertainty and an economic slowdown have led companies to postpone new space commitments and sell off older office buildings.
• Ongoing delivery of modern office developments has intensified oversupply in secondary locations, pushing demand toward high-quality central spaces.