Why a 1990s Munich Office Block Is Becoming 800 Apartments
Published on 07/09/2026 at 05:03 | Redaktion boerse-global.de
Germany’s commercial property market is sending mixed signals. Office vacancy rates hit 8.5 percent in the second quarter of 2026, yet rents for premium central locations are climbing. The disconnect is forcing companies, landlords and workspace providers to rethink how offices are designed, financed and used.
Take Munich. Despite a one-third jump in leasing volume during the first half of 2026, the Bavarian capital still has roughly 1.8 million square metres of empty office space. The city’s administration has set up a conversion task force to push through the transformation of surplus commercial buildings into housing. One flagship project is the Zamilapark in Bogenhausen, a vacant 1990s property slated to become more than 800 apartments. Construction is expected to begin in early 2027.
Across Germany’s five biggest office markets, total take-up in the first six months of 2026 reached 1.13 million square metres — 6 percent less than in the same period a year earlier. With vacancy rising, companies are hunting for ways to turn fixed property costs into variable ones while maintaining ergonomic quality for staff whether they work at headquarters or remotely.
A three-way merger targets flexible workplace furniture
That search is behind a recent consolidation in the workplace-equipment sector. Onyo GmbH has completed a retroactive acquisition of competitor Furnable, effective 1 January 2026. Together with the design-function group FaaS GmbH — already part of the Onyo structure — the three entities now form a single provider specialising in hybrid working environments.
Onyo contributes its digital platform for home-office solutions and technology know-how. The Designfunktion group brings brand recognition and an established sales network. The goal: offer companies rental models for office furnishings that can be scaled up or down as headcount and floor plans shift.
The market logic is straightforward. Physical office equipment is increasingly treated as a service — “Workplace-as-a-Service” — that combines software-driven inventory control with logistics and installation. Onyo will lead on technology, while Designfunktion handles project planning and direct sales. The integration of Furnable fills a gap in the product range.
Premium spaces still command top euro
Paradoxically, the loosest markets still see fierce competition for the best addresses. Munich prime rents have risen to as much as €62 per square metre. Landlords and tenants alike are investing in high-end, ergonomic fit-outs to make the physical office attractive enough to draw people in.
Beyond the office itself, adjacent industries are also consolidating around technical assistance systems. Prosthetics maker Ottobock, for example, recently acquired Spanish specialist Fesia Technology — a deal that underscores how assistive technology is gaining importance both in rehabilitation and at the workplace.
For furniture and workspace providers, the takeaway is clear: shipping desks and chairs is no longer enough. Competitive advantage now depends on bundling hardware with services, offering flexible financing, and designing environments that can adapt as hybrid work patterns keep evolving.
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