Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1} Share on Xing

Prime yields for office properties in Munich static

Verena Bauer • 06/04/2022

According to international real estate consultancy firm Cushman & Wakefield (C&W), Munich’s commercial real estate transaction volume was around EUR 960 million in the first three months of the year. Compared to the weak first quarter last year, this represents an increase of 113 percent, but is still 17 percent lower than the Q1 five-year average.

Three large-volume transactions of over EUR 100 million 
A major contribution to the solid result in the first quarter was made by three large-volume sales in the over EUR 100 million range. These totalled over EUR 534 million and accounted for 56 percent of the total transaction volume. All three deals involved office properties, namely the Olympia Business Center near the Olympic Park, with a purchase price of over EUR 300 million, the Allianz building in Unterföhring at EUR 110 million and the BMW office building in Milbertshofen at over EUR 100 million.

investment market Q1 2022


74 percent of turnover in the office segment
Office properties continued to be the clear focus of investors’ attention and, with a contribution of 74 percent, were the dominant asset class among commercial real estate transactions. Logistics and industrial properties followed well behind with around 10 percent and a transaction volume of around EUR 95 million. Five smaller transactions were registered here, including the sale of the industrial park in Garching near Munich to the Carlyle Group. Hotel and retail properties each accounted for only 5 percent of the total volume. 

Focus remains on low-risk assets
64 percent of the commercial real estate transaction volume in the first three months of 2022 involved low-risk assets in the Core and Core+ risk classes. Opportunistic and value-add properties played only a subordinate role in transactions in the Munich investment market. The participation of foreign capital was 19 percent and thus far below the previous quarter's figure of 47 percent.

Jan Isaakson, Head of Capital Markets Munich at Cushman & Wakefield, summarises: "Until recently, the Munich investment market knew only one direction - up. The market is characterised by rising rents and prices per square metre, low interest rates, falling property yields and demand that clearly exceeds supply. This environment has made the real estate investment market a hotspot of rapid value appreciation over the past ten years. Today, the market is in a transformation phase in which a wide variety of external forces are at work. Examples here include rising financing interest rates, rising inflation and, as a consequence, rising rents in the context of indexation adjustments. Furthermore, there is a high degree of investment pressure and still a lot of liquidity in the market as well as geopolitical risks, which increase uncertainty. Whether German commercial real estate will, as a result, continue to be seen as a safe haven against inflation risks or as an investment product at its zenith, will become apparent in the coming quarters."

Prime yields remain stable
The prime yield for high-quality core office properties with creditworthy tenants and long-term leases in prime locations was 2.50 percent at the beginning of 2022 and has remained static over the past 12 months, with non-central locations at 3.30 percent. The yield for high-quality logistics properties is currently 3.00 percent, compressing by 30 basis points compared to the previous year and reflecting the intensity of competition for this asset class. Further yield compression is expected by the end of the year. Likewise, there have been further declines in prime yields for commercial properties in city centre prime locations. Over the past 12 months, the prime yield compressed by 30 basis points to the current 3.00 percent.



verena bauer
Verena Bauer

Head of Marketing & Communications Germany, Cluster Lead • 60313 Frankfurt am Main


Business park econova in Essen
The letting of 11,500 square metres in Essen’s “econova” business park to Sulzer Chemtech

The Logistics & Industrial Services team advised Swiss process technology specialist Sulzer Chemtech on a long-term lease for 11,500 sq m of industrial and logistics space at Zur Peninsula 6 in Essen’s  “econova” business park.

Verena Bauer • 25/10/2023

Rhine Tower Duesseldorf
Solid quarterly take-up provides a slight improvement in Düsseldorf’s office letting market

In the first three quarters of 2023, a total of 183,400 sq m of take-up was recorded in Düsseldorf's office letting market, reports international real estate consultancy firm Cushman & Wakefield.

Verena Bauer • 10/10/2023

Luxury hotel lobby
Hotel Transaction Activity Remains Low and Yields Continue to Rise

In the first three quarters of 2023, international real estate consultancy firm Cushman & Wakefield recorded a total transaction volume of EUR 540 million in the hotel segment, of which EUR 150 million was generated in the 3rd quarter.

Verena Bauer • 10/10/2023


office with lights
Research • Economy

European Outlook 2024

Tailored for investors and property owners, our insights offer a clear path through the complexities of today’s market.
Sukhdeep Dhillon • 11/12/2023
main streets across the world 2023

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All