On 22 September 2026, the market research institute of IVD Süd presented its Bavarian commercial property market report “Office/Retail and Investment/Yield” for autumn 2026. For Munich, the report paints a two-sided picture: office rents in central locations continue to rise, while retail rents are stable but still well below pre-pandemic levels.

Office: central locations remain in demand

  • In Munich’s City A location within the Altstadtring, office rents for new leases rose by 1.9% compared with spring 2026. They are around 54% higher than in spring 2020.
  • In the City B location within the Mittlerer Ring, rents rose by 2.8% since spring and by around 45% since spring 2020.
  • According to IVD, demand focuses on modern, high-quality, ESG-compliant space in central, well-connected locations. Older, energy-inefficient buildings and locations on the outskirts are coming under greater pressure.

Retail: stable, but below pre-COVID levels

  • Prime retail rents in Munich remained stable across all locations and shop sizes compared with spring.
  • In 1a core retail locations they are still around 27% below spring 2020 levels, in 1b locations around 36%.
  • Demand is concentrated on high-footfall city-centre locations, often driven by major international brands.

Investment: a subdued market

Rising interest rates and capital market yields have recently worsened financing conditions again. The number of transactions in Munich in the first half of 2026 was well below the long-term level, despite some large deals such as the sale of the Alte Akademie.

Our view

The figures confirm what matters in Munich’s office market: a central location, good transport links and modern, sustainable space. Our office and commercial building at Karlsplatz 3 is located directly on Stachus with S-Bahn, U-Bahn and tram connections. With the planned connection to the Stadtwerke München district cooling network, we are also investing specifically in the building’s energy performance.

Source: IVD Süd e.V., market research institute, press release no. 100 of 22 September 2026 (“IVD-Gewerbemarktbericht Bayern Herbst 2026”).