Leipzig office market collapses: only three major deals in 2025!

Leipzig office market collapses: only three major deals in 2025!

What is happening on the Leipzig office market? The market will be quite challenging in the first half of 2025. Only 70 rental agreements were concluded, which corresponds to a decrease of 39 percent compared to the previous year. A total of 37,100 square meters were rented - a value that is 43 percent below the long-term average lvz.de reported. Anja Schuhmann, who is branch manager at JLL, describes the current development as weak and points out that the office market, which was stable during the Corona crisis, now needs reforms and a return to more security.

A particularly worrying trend is the lack of major deals: only three significant rental agreements were signed in the first half of the year. A positive exception is the Vollack Group's new building project at the Alte Messe, which is fully let. One of the most important tenants is LGH Leipziger Gewerbehof, which rents 3,100 square meters of office and laboratory space.

Market development and future prospects

However, the Leipzig office property market remains one of the leading economic centers in Eastern Germany, supported by a well-developed infrastructure and a highly qualified workforce. Even if the current figures show a decline, the prospects for 2025 are quite positive due to economic conditions, technological innovations and changed working models erena.me thematised.

The city continues to attract investors, citing, among other things, the constant growth of start-ups, the settlement of international companies and the growing demand for modern, energy-efficient office space. The current trends towards hybrid office concepts and coworking spaces are also central in this context. Companies are increasingly looking for flexible solutions. The demand for compact workspaces and “on-demand offices” is increasing significantly. The labor market is being further strengthened through government funding programs and an increasing number of training offers.

Construction projects and demand

With regard to office space, it should not be overlooked that LGH cannot meet current needs. Many of the newly created areas have already been allocated, while the move of c-LEcta, for example, will free up an additional 3,000 square meters in the Alte Messe. The vacancy rate in Leipzig has increased by nine percent to 198,000 square meters, but overall remains below the average of the last ten years. Older office properties that were renovated before the turn of the millennium often remain unused, which puts additional strain on market development.

In a nutshell: The office market in Leipzig is facing profound changes. A further 130,000 square meters of office space will be under construction in the coming years, with a third of the new office space currently still available for rent. Demand remains high in central districts such as Leipzig city center, Plagwitz and Südvorstadt, which is supported by the moderate price increase. The rental price for office space could rise by 5 to 7 percent in central locations by the end of 2025.

Surprisingly, the market saw only one notable sale of a commercial property in the first half of 2025: the retail park at the Rewe market on Zschochersche Strasse changed hands for around 40 million euros, according to the jll.com resulted. Although these transactions are rare in the current context, they show that there is still movement in the market, even if uncertainty remains.