The Frankfurt office property market was characterised by very strong letting activity in the first half of the year, but very low sales transaction volumes. This picture might change as the year progresses. High-quality space in central locations continues to be in high demand. Some large properties such as the Westend Duo are on the market. Transactions could still be concluded in the fourth quarter – or in 2026.

Rental agreements for around 340,000 m² of office space were concluded in the Main metropolis in the first half of 2025. This is a multi-year record, according to reports from the major brokerage houses JLL and BNP Paribas Real Estate. At around 200,000 m², the figures in the first quarter were even better than in the second (140,000 m²).

„The market is currently characterised by large-volume contracts that the market in Frankfurt has had to wait many years for,“ explains Riza Demirci, Managing Director and Frankfurt Branch Manager of BNP Paribas Real Estate. In the first quarter, these included project lettings by Commerzbank (73,000 m² in the Central Business Tower, and ING-DiBa (32,000 m² in the Hafenpark Quartier), as well as the signing by White & Case (10,000 m²). In the second quarter, KPMG (approx. 12,000 m² in the Opernturm and approx. 21,000 m² in the Park Tower) and Condor Flugdienst at Frankfurt Airport (a good 15,000 m²) were added. Deutsche Rentenversicherung Hessen has also rented 13,000 m².

„Some of these major deals took time to be realised,“ says Suat Kurt, Senior Team Leader Office Leasing and Branch Manager JLL Frankfurt. „However, there are still other large-volume requests for space on the market, and the pipeline is still well filled with around 200,000 m².“ JLL is therefore raising its take-up forecast for the year as a whole from 475,000 m² to 550,000 m². Savills is not quite as optimistic. The estate agent expects that, as a result of brisk market activity in the coming months, take-up could reach around 480,000 m² by the end of the year.

However, the rising trend is not only attributable to large lettings. The segment between 500 m² and 2,000 m² has also increased – by 23% from January to June according to BNPPRE. Rental space of less than 500 m² accounted for two thirds of the 237 (previous year: 243) deals counted by JLL. The largest share in terms of space was accounted for by Frankfurt's core sectors of banks and financial service providers, as well as consultants, with 126,000 m² and 75,000 m² respectively. The banking sector was the strongest sub-market, accounting for 41% of take-up.

For BNPPRE, the figures impressively reflect the reorientation of companies in terms of office use. Centrally located, high-quality space is now regarded as indispensable for the future of companies, but is hard to come by, and not just in Frankfurt. „Too little new, high-quality space is coming onto the market,“ says JLL manager Kurt. According to BNPPRE's observations, only around 19,000 m² of prime new-build space is available in city centre locations in the short term. As a result, outdated buildings are increasingly being completely refurbished and brought back onto the market.

In view of this development, vacancies, which have steadily increased in Frankfurt in recent years, are now falling again. JLL sees a trend reversal, while BNPPRE prefers to speak of a sideways movement as the „most likely development“ for the rest of the year.

However, the three estate agents agree that the top rent has permanently jumped above 50 euros per m² – and will continue to increase. JLL manager Kurt expects top rents in Frankfurt to „rise continuously by at least one euro/m² per year until 2030.“

And BNPPRE puts the average rent at a record-high 27.80 euros (+11.2%). It is now „slowly heading towards the 30 euros per m² mark,“ says Demirci.

The Frankfurt transaction market for office properties is quite different from the letting market. To put it bluntly: while large companies in particular are relocating a lot to prime central locations, investors are almost not active at all, at least if these activities are measured in terms of concluded sales agreements. According to JLL, offices account for just 12%, or 77 million euros, of the total commercial transaction volume of 640 million euros. At BNPPRE, the figure is slightly higher at 132 million euros (56% of 237 million euros).

In the first half of the year, JLL only registered five deals, none of which exceeded 30 million euros. „It is often only minor differences in quality or asking prices that prevent transactions from materialising,“ says Kurt. „This is particularly true for properties in B and C locations.“ In the central business district, virtually nothing is currently coming onto the market, because owners here are still waiting for better purchase price factors to make their business plans work.

In an interview with Börsen-Zeitung, Kurt cites the Westend Duo as an example of one of several top properties currently for sale. „There is a high demand for A-locations in A-quality, but a low supply. However, given the interest rate landscape, I doubt whether purchase price factors of 30 can be achieved as they were a few years ago.“ For him, discounts of 5 to 6 factors are more realistic for absolute core products. For Core+, where there is still some work to be done on the buildings, 20 to 22 times could lead to deals.

Kurt believes that B-products in B-locations are neither in demand for rent nor for sale. „Neither tenants nor buyers see any utilisation opportunities here. Such products are therefore not in demand for 10 times or less.“

Franc Gockeln, Head of Office Investment at BNPPRE, takes a different view. There is certainly demand for such properties. „However, there must be price adjustments that are significantly greater than for top properties in top locations.“

After a solid start in the first quarter, the market subsequently lost momentum, not only in Frankfurt, but in many A-locations. However, BNPPRE manager Demirci sees reason for optimism. „The exceptionally high record result on the office letting market and the realisation that major deals are increasingly possible again in the letting segment should boost office investments in Frankfurt.“

Kurt also sees light on the horizon. The continuous rise in prime office rents also justifies somewhat more aggressive business plans– provided the location and building quality are right. „There are positive signs and there is also a little more pitching again, especially for value-add properties, but also in the core segment. There should certainly be one or two large-volume transactions by the end of the year.“ A few transactions are needed now. „Then you know: you can get 25 or 26 times more for an A building in an A location, for example. And then the rest of the market will follow suit,“ Kurt is certain. „Core is then the benchmark.“ For core+ transactions, there would then be a few factors less.

BNPPRE manager Gockeln explains the reluctance of portfolio holders to put their properties up for sale with the uncertainty surrounding interest rate trends. They also saw no need to sell off extremely cheaply financed properties, especially if they still had to realise a loss. „Supply has been slowly increasing since the beginning of 2025, as the Westend Duo shows, for example. This may not be reflected in property sales until the fourth quarter, or perhaps not until the course of 2026,“ Gockeln told Börsen-Zeitung.

Currently, properties worth between 30 and 100 million euros are primarily being sought, observed Gockeln. „Capital for really large-volume transactions is not available as in previous years. In terms of transaction volumes, Frankfurt in particular has always thrived on these large-volume deals.“ However, in view of a recent 450 million euro transaction in Berlin (Upper West), he was confident that this capital would also return. „A good product in Frankfurt will also meet with great national and international demand", he says.

Manuel Backfisch, Managing Director & Head of Capital Markets Frankfurt at Colliers, is also positive about the future: „More products are currently coming onto the market again, as the pressure to sell is increasing for some owners, for example due to cash outflows, refinancing requirements or strategic portfolio adjustments", he says. "Numerous sales processes are currently undergoing active marketing or exclusivity. These range from properties in the value-add segment in peripheral locations to core properties in central city centre locations. The ongoing processes will show whether supply and demand will come together again under the current conditions.“

The increased yields on German government bonds are making it more difficult for property investments to compete again. According to Backfisch, the financing environment will remain restrictive even if the ECB cuts interest rates further. Added to this are the high equity requirements and ESG criteria, which are becoming increasingly important from the perspective of banks and investors.

In view of the properties currently being marketed, some of which are at an advanced stage, the Savills manager expects to see a noticeable increase in transaction activity – provided that sellers and buyers are able to agree on prices. Backfisch does not expect the previous year's volume of around 1.5 billion euros this year. „But the second half of the year could pick up compared to the first. Many market players are already using the current phase to set the strategic course for 2026.“ In addition to the letting market, the projected economic growth and a slight improvement in the property climate are having a positive impact.