Thursday, 16 October 2025
Essen’s office property market continued to show subdued activity through the third quarter of 2025, with leasing momentum easing after a stronger start to the year. Total take-up by the end of September reached roughly 45,000 square metres, marking a decline compared to the same period last year and falling well below the city’s long-term average, according to market research from BNP Paribas Real Estate and corroborated by analysts at JLL and Colliers.
The slowdown is largely due to a lack of medium-sized transactions, traditionally a key driver of the market. While smaller leases under 500 square metres and a few large-scale lettings have helped sustain activity, the absence of deals in the 2,000–5,000 square metre range has weighed heavily on overall results. The City of Essen itself accounted for several of the largest agreements this year, including a notable 13,000-square-metre lease in the Weststadt district — the most active submarket to date.
Average rents have continued to edge upward despite weaker leasing volumes, reflecting the limited availability of modern, high-quality space. Prime rents currently stand just below €19 per square metre, with the Southern Quarter achieving the highest rates. Average rents across the city are reported to have climbed toward €15 per square metre, supported by rising fit-out standards and a shortage of new completions.
Public institutions remain a dominant source of demand, representing about half of total leasing activity so far this year — significantly above long-term averages. The private services sector follows, though with fewer large commitments than in previous years.
Vacancy across the Essen office market has risen modestly, now estimated at around 8%, though availability of modern, ESG-compliant offices remains limited. Only a small share of the existing vacant stock meets current standards, while ongoing projects under construction are already largely pre-let. New development activity has declined sharply, with construction pipelines down by more than a third year-on-year.
Market observers expect a mild improvement in the final quarter, encouraged by stabilising sentiment in the wider German economy. However, the full-year leasing total is unlikely to reach last year’s levels unless several large transactions are concluded before December.
Despite short-term headwinds, analysts suggest Essen’s fundamentals remain intact. The city’s transformation from a traditional industrial hub to a diversified service and administrative centre continues, supported by steady public-sector demand and gradual modernisation of its office stock.
