Frankfurt’s office leasing market hits a five-year high in 2025
Frankfurt’s office leasing market saw its strongest performance in five years during 2025. Demand surged, with over 551,800 square meters leased—driven by major deals from banks and financial firms. Rents for top-tier spaces also climbed sharply, reflecting the high competition for premium offices.
The market’s growth was fuelled by nine large transactions, each exceeding 10,000 square meters. Together, these deals accounted for around 210,000 square meters—more than five times the volume recorded in 2024. Key players included Commerzbank, which secured 73,000 square meters in the Central Business Tower, and ING Deutschland, leasing 32,000 square meters in the HPQ building. KPMG Europe also took 33,400 square meters across the Park Tower and Opernturm, while Allianz Global Investors signed for 17,400 square meters in the Fürstenhof.
Banks, financial services, and insurance companies led demand, making up roughly a third of all leasing activity. Tenants showed a clear preference for central locations, particularly within the Central Business District, where new builds and high-end refurbishments were most sought after. This strong interest pushed prime rents up to €53.30 per square meter—a €4.30 increase from 2024. Despite the high demand, vacancy rates rose to 11% by the end of 2025, with about 1.26 million square meters of space remaining unoccupied. Analysts now expect demand to stay robust in 2026, but the supply of large, high-quality spaces is set to shrink. This imbalance could push rents even higher in the prime segment.
Frankfurt’s office market closed 2025 with record leasing volumes and rising rents. The dominance of financial sector tenants and a shortage of premium space suggest further upward pressure on costs. With demand expected to remain strong and supply tightening, the market’s dynamics are unlikely to shift in the near term.
