Berlin's office market splits as prime rents soar but vacancies climb

Companies are downsizing but paying more for premium spaces. Economic caution reshapes Berlin's office landscape—flexibility over expansion.

, and Administrator

2026 March 26 . 7:01 PM

1 min read

The image shows an old document with a map of a building on it, which is a plan of the Berliner... — The image shows an old document with a map of a building on it, which is a plan of the Berliner Handelagellachaft. The paper has text written on it and a stamp on the left side.

Berlin's office market splits as prime rents soar but vacancies climb

Berlin's office market is showing mixed signals in 2025. While prime rents have reached record levels, overall leasing activity remains below past peaks. Companies are choosing smaller, higher-quality spaces as economic uncertainty lingers across Germany. The number of lease agreements in Berlin climbed to a notable high this year. Yet total leasing volume dropped to roughly 530,000 square meters. Businesses appear cautious, prioritising flexibility and premium locations over large-scale commitments.

Vacancy rates in the city have now surpassed eight percent. The sharpest increases are in older buildings and less central districts. Meanwhile, top-tier rents continue to rise—not just in Berlin but also in Munich, Frankfurt, and Hamburg. Across Germany, the office market stays stable but subdued. Fewer major deals are being signed, reflecting a broader trend of restrained expansion. Firms are opting for modern, efficient spaces rather than traditional, sprawling offices.

Berlin's office sector is adjusting to shifting demands. Higher rents in prime areas contrast with growing vacancies elsewhere. For now, businesses are focusing on quality and adaptability rather than rapid growth.