Cologne office market 1st half-year 2025 - Stable, but still not spectacular
With take-up of 105,000 m², Cologne's office market shows a significant increase compared to the first half of 2024
Take-up of 105,000 m² in the first half of the year - 70 % up on the previous year
With take-up of around 105,000 m², the Cologne office market recorded a strong upturn in the first half of 2025 compared to the same period of the previous year. The increase of around 70 % is primarily due to increased activity from the public sector. Two major contracts signed by the Cologne Jobcenter alone account for around 31,000 m². These are a key driver of the market in an environment that remains challenging overall. The vacancy rate is currently stable at 5.1 %, which corresponds to around 410,000 m². Compared to other top 7 cities, Cologne thus remains at a healthy level. There is still a noticeable shortage of high-quality space, particularly in the central locations, with a steadily worsening supply shortage.
Rental levels remain crisis-proof
The prime rent stabilized at €32.50/m² in the first half of 2025 - driven by the continuing shortage of high-quality new-build space and a persistently low volume of completions. The maximum rent remains unchanged at €35.00/m². Due to the low number of high-priced deals, the weighted average rent fell slightly to €19.80/m².
"The decline in the average rent is of little concern - it does not reflect any weakness in the market, but is simply a consequence of the lack of high-quality space on offer," explains Alexander Wunderle, CEO of Angermann NRW.
Cologne city center with over 50 % market share
The trend towards the city center will remain unbroken in 2025: Cologne city center accounts for over half of take-up. Companies continue to prioritize central, high-quality locations with urban surroundings, good infrastructure and attractive working environments. Cologne's Weststadt district was also particularly strong, with a market share of over 36% - largely driven by the large-scale lease by the Jobcenter. Weststadt, which already has the most extensive pipeline of project developments, is therefore likely to become an increasing focus in the future. The north of Cologne secured third place with a solid market share of around 8 %.
Outlook: The trend is right, but the challenges remain
Despite the positive development, the overall volume is still well below the boom years. The structural shortage of new-build space remains the central problem: many projects can only be realized with a high pre-letting rate. This is exacerbated by restrictive financing conditions, lower purchase price factors and ongoing economic uncertainties - factors that continue to slow down project development. The excess demand for high-quality space remains.
Market activity has recently increased noticeably, particularly in the segment below 1,000 m² - an initial sign of recovery. In the medium to long term, the ifo Institute's upward revision of economic growth to 1.5 % for 2026 is also likely to have an impact on the office market. However, short-term stimuli remain the exception - commercial decision-making processes are too sluggish in a contractual environment that is geared towards the long term.
Press contact
Alexander Gruhler
Managing Partner
Tel: 0221 / 947 40 - 0
Mail: alexander.gruhler@angermann.de
