ZIA Office Property Day 2025 - Rethinking the Office

Gunnar Gombert attended the ZIA Office Property Day 2025 in person. The event provided a clear picture of the current status of the German office market: vacancy rates in the Big 7 sit at around 8 %, with Frankfurt and Düsseldorf significantly higher. The “flight to quality” continues to sharpen – strong locations and ESG-compliant, flexible assets remain resilient, while older, less adaptable buildings come under increasing pressure.

ZIA Office Property Day 2025 (Source: Gunnar Gombert)

New developments remain limited due to high construction costs, weak pre-letting activity and tight financing conditions. Transformations and repositioning grow in importance but remain economically demanding. Capital providers act selectively and place increasing emphasis on operating costs, data quality and ESG alignment.

Against this backdrop, four developments stood out:

1. Office-to-residential conversion

Converting offices into residential use was more prominent than ever. The potential to repurpose existing stock is significant, though feasibility depends heavily on building structure, economic viability and regulatory approval processes.

2. Alternative construction methods gaining traction

Hybrid timber construction continues to gain momentum. Sustainability, circularity, material innovation and faster delivery times are key advantages. Two of the three winners of the ZIA Office Award were developed using timber-hybrid structures – a strong signal of where development may be heading.

3. Digitalisation reshaping work and buildings

Digital tools are changing work models and user expectations. The more digitally enabled work becomes, the more flexible the choice of workplace – yet the office grows in importance as a place of identity, collaboration and a “market hall of knowledge”. This dynamic influences space planning, technical specifications and investment strategies.

4. Desk sharing & new workspace concepts

Large corporates increasingly plan with desk-sharing ratios of up to 1:3. The traditional desk becomes less relevant; collaborative, communicative and project-oriented areas move to the forefront. The concepts showcased at the ZIA event illustrated the broad spectrum of innovative workspace solutions – from open knowledge areas to modular project zones.

The German office market is undergoing structural adjustment. Shifting user preferences, ESG requirements, digitalisation and new construction methods reshape both opportunities and risks. Future-proof assets will be those aligned early with functional, technical and economic demands.

Gunnar Gombert Strategy Consulting supports market participants in assessing these shifts and developing strategies that create lasting value.