Berlin's Office Market Rebounds: Leasing Activity Surges in Q1 2026

The Berlin commercial property market has shown signs of a significant rebound in early 2026, according to recent sector data. Office take-up in the first quarter of 2026 saw a notable increase, with between 148,100 and 171,600 square metres of office space leased. This represents a growth of 43% to 50% compared to the same period in 2025, although total activity remains below the five-year average.

Rental Trends and Pricing Dynamics

Leasing costs for premium space continue to exhibit upward pressure. Prime rents for office properties in Berlin reached €47.50 per square metre per month in Q1 2026, marking an increase of €0.50 compared to late 2025 levels. Conversely, average rental rates across the broader market have seen a decrease, settling at approximately €25.40 per square metre per month. These figures reflect a nuanced environment where high-quality, prime assets maintain strong valuation, while the wider market experiences a different pricing trajectory.

Vacancy Rates and Market Capacity

A primary driver for the current market state is the change in available office inventory. The office vacancy rate in Berlin increased to 8.4% during Q1 2026. This shift, which reverses a multi-year period defined by a shortage of space, is underscored by the fact that over 1.94 million square metres of office space are now available on short notice. For businesses and investors, this expanded availability signals a transition from the supply constraints that characterized previous years.

Commercial Investment and Transaction Outlook

Broader commercial investment metrics provide context for the current office market performance. Data from the first three quarters of 2025 indicated that total commercial property investment volume reached €2.45 billion, remaining virtually stable with a 1% increase over the prior year. Within this landscape, retail properties emerged as the strongest asset class, holding a 26% market share. Earlier performance in Q1 2025 showed a commercial transaction volume of €1.08 billion, which was 105% higher than the same quarter in 2024, despite still trailing the five-year average by 25%. Throughout these movements, prime yields have remained unchanged across all commercial property types, suggesting a period of stabilization in investor expectations.

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