Berlin ($48/sqft, 7.4% vacancy) and Frankfurt ($60/sqft, 8.4% vacancy) compete on different axes: Berlin on talent depth and Frankfurt on talent depth.
Berlin ($48/sqft, 7.4% vacancy) and Frankfurt ($60/sqft, 8.4% vacancy) compete on different axes: Berlin on talent depth and Frankfurt on talent depth.
| Metric | Berlin | Frankfurt |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Germany | Germany |
| Class A rent (USD/sqft/yr) | $48 | $60 |
| Class A rent (local) | 44 EUR | 55 EUR |
| Vacancy | 7.4% | 8.4% |
| Trend | flat | flat |
| Prime yield | 4.3% | 4.4% |
| Premium flex / seat / month (USD) | $580 | $1,080 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 30% | 30% |
| Metric | Berlin | Frankfurt |
|---|---|---|
| Typical term | 5 yrs | 7 yrs |
| Typical rent-free | 4 mos | 9 mos |
| Lease norms | Net leases dominate. 5-10 year terms; tenants frequently negotiate break options at year 3 or 5. Free rent of 3-6 months on a 5-year deal; TI of €60-€100/sqm typical. | German leases run 5-10 years with break rights. Rent reviews are indexed to the CPI (Verbraucherpreisindex). Tenant pays Nebenkosten (operating costs) on top of base rent. Cautio (security deposit) of 3-6 months is typical. |
| Tax note | 15% federal corporate income tax plus 5.5% solidarity surcharge plus Berlin trade tax (Gewerbesteuer) of about 14.35% for an effective combined rate of about 30%. | Combined federal + state + Gewerbesteuer (trade tax) effectively 30% in Frankfurt. |
| Metric | Berlin | Frankfurt |
|---|---|---|
| Talent index (0–100) | 88 | 88 |
| Talent note | Deepest tech and creative talent pool in Germany. Strong feed from TU Berlin, HU, FU, and the rapidly growing Hertie School. Multilingual talent base supports non-German European HQs. | Deepest banking-and-regulatory talent pool in continental Europe. Average all-in compensation indexes 88. |
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9.
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE.
Berlin is the cheaper Class A market on a USD basis.
Talent indices are tied at 88/100.
Tax rates are tied.
Berlin typical term is 5 years with 4 months free; Frankfurt runs 7 years with 9 months free.
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9. Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE.
Score Berlin, Frankfurt and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.