Frankfurt's office market is booming: prime rents are rising, vacancies are growing!

Frankfurt's office market is booming: prime rents are rising, vacancies are growing!

The office rental market in Frankfurt am Main proved to be extremely lively in the first half of 2025. Thanks to high demand for high-quality office space, an impressive take-up of space was achieved340,100 m²can be achieved, which means a whopping increase of93.9% compared to the previous yearmeans how konii.de reported. This positive development is supported by several major deals5,000 m²supported, in particular by well-known companies such as Commerzbank, ING and White & Case.

The first three months of the year already laid the foundation for this success. In the first quarter, Frankfurt recorded a rental volume of198,100 square meters, representing an incredible increase of131 percentcompared to the same quarter last year cbre.de notes. Three major deals alone contributed115,000 square meterscontributes significantly to the overall demand for space.

Vacancies and rental prices at a glance

Despite the positive figures, the vacancy rate rose in the second quarter14.0%increased, which is the highest value since 2012. There is an increase here170 basis points compared to the previous quarter. However, the demand for modern office space remains unbroken; This also led to an increase in the prime rent51.00 EUR/m²led. An increase by2.0%compared to the previous quarter and13.3%compared to the same period last year.

Compared to other German cities, Frankfurt continues to be an attractive location. The average rents in the Main metropolis are rising to around29.65 EUR/m², which represents an increase of14.9 percentcorresponds. In contrast, Cologne is likely to continue to face challenges in the office rental market, as the city only recorded in the first half of the year63,000 m²in take-up of space, which is an impressive decrease compared to the previous year55%determines how presseportal.de summarizes.

Outlook and trends

The forecasts for the rest of the year are optimistic. There will be a space turnover ofapprox. 480,000 m²expected for the entire year 2025. The development is also driven by the increasing number of large deals and the growing interest of foreign investors. Nevertheless, the real estate investment market remains67 million eurosInvestment volume was very restrained, resulting in a decline of55 percentcompared to the previous year. Banks and financial service providers are still the main tenants and make around55 percentof all rentals in the first quarter.

In summary, it can be said that, despite increased vacancies and a cautious investment landscape, the office rental market in Frankfurt shows a dynamic and lively trend, which is characterized by strong rents and significant demand for modern space.