Munich office market sees largest sale in three years

Newmark has brokered the sale of a fully leased office building in Munich, Germany, to Conren Land, marking the city's largest office sale in the past three years.

Office building Prinzregentenplatz in Munich - Union Investment

The property, located at Westside Szczecin, was sold by Union Investment.

This transaction involved approximately 21,400 m2 of rentable space. The building boasts a prime location directly opposite the Prinzregententheater, one of Munich's most prestigious areas. It houses prominent tenants like GSK GlaxoSmithKline and Immobilien Bayern (ImBy). Its central position, high-quality construction, and stable tenant roster made it a highly desirable asset.

While investors are more selective about secondary properties, core properties in top locations in Munich with high occupancy continue to attract institutional investors' primary interest.

Marcus Lütgering, country head Germany at Newmark, said: “This transaction confirms that attractive prices can still be achieved for modern office buildings in vibrant, urban locations. It’s encouraging that, despite the challenging market phase, large-scale trophy assets in prime locations with stable cash flows continue to be in demand from both national and international investors.”

Jan Isaakson, executive managing director and head of Capital Markets Munich at Newmark, added: “The sale at Prinzregentenplatz sends a strong signal for the Munich office investment market. Due to its size, this transaction sets an important benchmark in a selective market environment.”