Sell retail in Munich.

Munich enters Q1 2026 as Germany strongest retail-leasing market, anchored by two distinct prime pitches. The Kaufingerstrasse/Neuhauser Strasse pedestrian axis between Marienplatz and Stachus ranks among the country highest-footfall and highest-rent mass-market streets, with EHI data putting Munich prime rent at roughly 320 EUR/sqm/month, far ahead of Frankfurt and Stuttgart at around 190. After the post-2020 correction, asking rents on the main axis have stopped falling and 1a rents in large German cities rose nearly 5% year-on-year, signalling a stabilising-to-recovering picture, although top mass-market levels remain below the pre-2018 peak. Demand is led by international flagship, vertical-retail, beauty and lifestyle brands, while younger pitches such as Sendlinger Strasse attract concept and emerging-brand occupiers at more accessible rents. The luxury segment on Maximilianstrasse is a separate, structurally tighter market. It commands Germany highest luxury rents, around 250 EUR/sqm/month, with vacancy of only about 1.8% and effectively no genuine availability. Cushman & Wakefield reports brand competition for the scarce units intensifying, luxury rents about 7% above the prior year, and continued investment by maisons including Bulgari, which reopened its modernised Maximilianstrasse 17 boutique in 2025. Theatinerstrasse and the adjacent Fuenf Hoefe bridge the mass-market and luxury clusters with resilient premium demand. The leasing pipeline is dominated by the revitalisation of the Alte Akademie directly on the Kaufingerstrasse axis, which will add modern flagship space, alongside the planned Maximilianstrasse 12-14 upgrade by Commerz Real and ongoing repositioning of legacy floorplates. Lease structures remain indexed fixed rents with roughly five-year minimum terms and somewhat more tenant-favourable conditions than before the pandemic. The main risks over the next twelve months are softer consumer spending amid renewed inflation and energy-cost pressure, structural challenges for oversized legacy boxes, and geopolitical uncertainty. The opportunities lie in landlord pricing power in the fully-let luxury core, the upside from normalising mass-market rents, capturing lifestyle demand on emerging streets, and the delivery of high-quality flagship space through the Alte Akademie. Overall, Munich combines a defensive, supply-constrained luxury core with a recovering mass-market high street.

luxury rent: 250 EUR/sqm/month (Maximilianstrasse); prime rent high street: 320 EUR/sqm/month (Kaufingerstrasse/Marienplatz).