Milan Office Market Dynamics, Q1 2026

In Q1 2026, Milan office leasing market recorded almost 66,000 sq. m. of take-up, supplemented by 4,000 sq. m. in subleasing activity. Demand remains robust, as demonstrated by a stable number of transactions compared to Q1 2025, and a figure that is above the five-year first quarter average.

Occupier focus on core locations persisted, with the Centre and CBD areas capturing 40% of total volume. Demand for quality drove Grade A absorption to 65% of the total. The grade A vacancy rate hovers around 3.6%.

Milan recorder €260 million of office investment volume, mainly focused on value-add strategies involving assets repositioning. In contrast, core assets were the primary target for private investor in the CBD.