For institutional fund strategies, Altstadt-Lehel carries the strongest investor flag in Munich, with prime yields around 3.9%.

  • Trophy submarket (Altstadt-Lehel) carries the strongest investor flag.
  • Prime yield: 3.9%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Munich office fund strategy and flag

For institutional fund strategies, Altstadt-Lehel carries the strongest investor flag in Munich, with prime yields around 3.9%.

TL;DR

  • Trophy submarket (Altstadt-Lehel) carries the strongest investor flag.
  • Prime yield: 3.9%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Munich, that's Altstadt-Lehel and assets like Highlight Towers, Hochhaus Uptown München.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityMunich
countryGermany
regionEMEA
classARentLocal56 EUR/sqft/yr
classARentUsd$61/sqft/yr
vacancy6.1%
typicalLeaseYears5
typicalRentFreeMonths3
submarkets5
primeYieldPct3.9%
primeYield3.9%
trophyAnchorAltstadt-Lehel

Frequently asked questions

Where do core funds buy in Munich?
Trophy submarket — Altstadt-Lehel — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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