Office Vacancies Rise in Germany as Economic Uncertainty and Remote Work Persist

Demand for office space in major cities remains subdued, with companies favoring smaller, modern spaces and delaying large leasing decisions.

Office vacancy rates in Germany's seven largest cities increased to 6.8% by the end of 2024, up from 5.8% the previous year, according to Jones Lang LaSalle (JLL).
The total available office space in these cities now stands at 6.7 million square meters, reflecting a continued oversupply in the market.
Economic challenges and widespread adoption of remote work since the pandemic have significantly reduced demand for traditional office spaces.
Many companies are opting for smaller, sustainable, and modern office spaces while older and unsanctioned properties struggle to find tenants.
Experts predict that the shift to hybrid work models could reduce office space needs in Germany's largest cities by over 10% by 2030.