Munich is one of Germany’s premier cities and it has seen a lot of growth in the last few years. More and more companies are choosing to set up shop in the Munich area and this trend fuels the current office space shortage that the city has been experiencing.
As a hotspot for international and local IT companies and start-ups, this means that there is, in particular, a shortage in available office space for smaller companies in the Munich city centre. The average office space rental vacancy rate in 2017 stood at a low 2.4% and is continuing to decline year on year.
The local government in Munich has identified the need to add additional office space to the market but despite this, investment in new properties has remained low throughout 2018 and 2019. The same trend is set to continue in 2020 but new developments are planned to ease the problem in the years beyond 2020.
New property developments in the Munich area for 2020
There are several developments scheduled for completion in 2020 and beyond. On completion, the extra rentable space will make it easier to find a suitable property in the Munich area and give businesses a welcome reduction in rent rates. developments will focus on additional office space for smaller businesses, especially in the Werksviertel area where many tech businesses are centred.
New developments for larger corporate entities are also underway and this will make it easier for companies with several employees to find a working space in Munich. Due to several government incentives and high demand for space, developers are looking at Munich with new eyes. The city centre of Munich is another area where development is planned in the near future. Several additional office buildings will add rentable space to the market for smaller companies in need of offices in a central location.
The Munich area has always been a popular area for business to establish themselves and this is set to continue well beyond 2020. The city of Munich offers a lot of reasons for companies to open offices in the area and the addition of new developments will make it easier for companies to find space in 2020 and beyond.