Vacant Spaces, Large Amounts: Office Vacancy Reaches Double-Digit Millions in Top Cities

2 min

Introduction

Office space vacancy in major German cities is associated with opportunity costs amounting to millions. An analysis of the 15 largest cities reveals that current office vacancies and rent levels in many areas accumulate to monthly amounts in the millions. The analysis is based on city-specific vacancy data, the respective median office rent, and the spatial expansion of the cities. Additionally, employment figures are used to contextualize the significance of vacancies within the respective labor markets. The aim is not to evaluate individual locations, but to provide a data-driven assessment of where vacancy economically and spatially has significant impact.

Millions in cities with robust job markets

Particularly high computational values are seen in cities with pronounced office and job markets. In Frankfurt am Main, approximately 1.73 million square meters of office space are currently vacant. With a median rent of 30.20 euros per square meter per month, this amounts to approximately 52.3 million euros per month attributed to unused space. Frankfurt has around 642,000 employed individuals in a city area of 248 square kilometers, indicating a high spatial concentration of office spaces.
In Munich, about 1.87 million square meters of vacancy at a median rent of 27.10 euros amount to approximately 50.7 million euros per month. The city covers 311 square kilometers and has around 1.15 million employed persons. Berlin, with 1.83 million square meters of vacant office space and a median rent of 27.30 euros, reaches a monthly amount of nearly 49.9 million euros. At the same time, this value is spread over a comparatively large urban area of 891 square kilometers with about 2.2 million employed individuals, which puts the absolute amount into perspective.
Düsseldorf and Hamburg also fall within the double-digit million range. In Düsseldorf, 1.17 million square meters of vacancy at a median rent of 19.90 euros corresponds to around 23.3 million euros per month. The city counts about 565,000 employed individuals over 217 square kilometers. Hamburg has 882,000 square meters of vacancy and a median rent of 22.50 euros, amounting to around 19.8 million euros monthly, spread over 755 square kilometers with about 1.37 million employed individuals.
Stuttgart also joins this group. There, the computed amount for vacant office spaces is around 10.1 million euros per month, placing it in a similar range as Cologne, which amounts to about 9.2 million euros monthly.

High rents alone don't explain the vacancies

The data does not show a clear pattern that could explain vacancies solely by rent levels. Although the highest amounts occur in cities with high office rents such as Frankfurt, Munich, or Berlin. At the same time, cities with significantly lower rents also show relevant vacancies, albeit on a smaller scale. For instance, Nuremberg reaches approximately 5.75 million euros per month and Hanover around 4.5 million euros, resulting in amounts greater than those of some larger cities, even though the rent levels there are significantly lower. Conversely, the monthly amounts in cities like Dresden or Duisburg remain relatively low, at around 1.4 and 1.2 million euros respectively, even though office spaces are also vacant there. The comparison clearly demonstrates: while high rents do amplify the economic significance of vacancies, they do not explain them solely. The crucial factor is the interaction between office stock, space utilization, and the spatial structure of the cities.

Categorization

“The analysis reveals that many office spaces are still planned for permanent full occupancy even though the actual usage has long since changed. Our calculation refers exclusively to officially designated, unrented vacant spaces. Office spaces that are rented but practically only partially used are not considered. Especially since the expansion of home office and hybrid work models, the amount of truly unused office spaces is likely higher than the official vacancy rates suggest. Additionally, when long-term leases expire in the coming years, a significant portion of this previously hidden underutilization is likely to emerge as official vacancy in the market. High rents make these opportunity costs more apparent, but do not explain them alone. What is crucial is how office space is planned, used, and spatially distributed. Concepts like desk-sharing or flexible space use are therefore less a trend and more an economic necessity.”

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