Munich Office Sale Signals Investor Return

Munich records its biggest office sale in three years

Munich’s office investment market has recorded its largest sale in three years after Union Investment sold the fully leased office building at Prinzregentenplatz 7–9 to a company managed by CONREN Land. CRE Media Europe reported that Newmark brokered the transaction, describing it as the city’s biggest office sale over that period.

Union Investment exits a prime Bogenhausen asset

The property is located in Bogenhausen, opposite the Prinzregententheater, in one of Munich’s most established urban office locations. Union Investment said the complex provides around 21,332 sq. m of lettable space, holds DGNB Silver certification and was fully refurbished in 2011 and 2012. The transfer of rights and obligations is expected at the end of June 2026.

Newmark put the lettable area at about 21,400 sq. m and said the asset is fully leased. Tenants include GSK GlaxoSmithKline and Immobilien Bayern. The sale price was not disclosed, although Union Investment said it was above the latest expert valuation.

Why the transaction matters for German offices

The deal shows that institutional investors remain willing to buy office assets when the location, occupancy and income profile are strong enough. That separates prime, well-let buildings from secondary assets, where buyers still price in higher capital expenditure, energy upgrades and vacancy risk.

Immobilien Manager, citing Thomas Daily, reported that the transaction value was above €167 million, although the parties themselves did not publish a price. If accurate, that would make the sale one of Munich’s most significant office transactions of 2026.

Munich leasing market supports prime pricing

The sale comes as demand for high-quality space in Munich remains resilient. CBRE said prime office rent in the city rose 5% year on year to €61 per sq. m per month in the first quarter of 2026, while the 12-month rolling weighted average rent stood at €26.72. Vacancy excluding sublease space reached 8.4%, and office investment volume totaled about €419 million.

JLL estimated Munich office take-up at 164,900 sq. m in the first quarter of 2026, pointing to a strong start for the letting market despite continued caution among occupiers.

Investors focus on income security

Colliers reported that Munich office investment volume reached €620 million in the first quarter of 2026, up 34% from a year earlier, while transaction activity almost doubled. The firm also said prime rents reached a record €61.50 per sq. m.

Against that backdrop, the Prinzregentenplatz sale looks less like an isolated trophy trade and more like evidence of a selective recovery. Buyers are not returning to all office assets equally; they are concentrating on modern, central and highly occupied buildings with predictable cash flow.

As experts at International Investment report, the Union Investment and CONREN Land deal does not mark a full recovery of Germany’s office market. It does, however, set a benchmark for Munich: capital is returning first to the safest part of the sector, where location quality, tenant stability and building standards can still support large transactions.