Germany’s commercial property recovery remains highly selective. JLL’s Q2 Big 7 office report shows first-half take-up of 1.35 million square metres, about 5% below last year, with Berlin and Munich together accounting for more than half the leased space.

The Big Two Are Doing The Heavy Lifting

Berlin recorded about 386,100 square metres of take-up and Munich about 347,500 square metres, giving the two cities disproportionate influence over the national office narrative. Tenants are still moving, but they are focusing on better-connected, higher-quality buildings rather than absorbing older commodity space.

Vacancy And Rent Can Rise Together

Office vacancy across the Big 7 reached roughly 8.5 million square metres, with the average rate at 8.5%. At the same time, prime rents rose by about 5% over 12 months, led by Munich at EUR62 per square metre per month, Frankfurt at EUR55 and Berlin at EUR48. That combination shows a polarized market: premium space is scarce while secondary space remains hard to lease.

Investment Volumes Are Improving From A Low Base

Cushman & Wakefield reported EUR16.6 billion of German real estate investment in the first half, up 20% from a year earlier, with commercial volume at its best first-half level in four years. Regional performance still varies sharply, so capital is returning with discipline rather than chasing every asset class equally.

What To Watch Next

Germany’s second-half question is whether capital follows tenant demand into refurbished and prime assets only, or whether price resets finally make secondary offices investable. Berlin and Munich will remain the clearest leasing signals. Track Germany real estate daily: For current listings, price trends, and market data, visit germanyhousingmarket.com.