Spotlight: European Office Outlook
Southern Europe office demand outperforms as European vacancy rates begin to stabilise
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Southern Europe office demand outperforms as European vacancy rates begin to stabilise
Read now"European office take-up to marginally increase in 2024, as occupiers seek the best of the best"
"While the European economy continues to struggle under the strain of tight monetary policy, there are signs of stabilisation in both the occupier and investment markets"
"With many EV users not having access to home charging points, public infrastructure provision is essential. Many landlords have significant volumes of car parking spaces that could be suitable for installation, so this is an opportunity to monetise an asset that is largely underutilised while simultaneously strengthening potential revenue to other facilities via partnerships with CPOs"
"The average European office occupancy rate has increased from 55% in February 2023 to 57% in September 2023, behind the pre-pandemic average of 70%"
"Over €12bn to be invested in PBSA over the next two to five years, led by Spain, Italy, Germany, France, and Portugal"
"Average prime European office yields move out by 20 bps during Q3 2023, as Berlin, Amsterdam, Madrid and Munich sit within fair pricing territory"
"We expect a gradual resurgence in investment activity starting in Q4 and extending in 2024 on the back of the downward price adjustments. However, the lacklustre economic landscape is poised to act as a drag on investment activity for the forthcoming six months"
"UK tops European investor wishlist, as sentiment improves for logistics and living sectors"
"European Industrial Outdoor Storage investment expected to grow by 4.5%"
"With Europe’s economy continuing to struggle it’s increasingly clear that any sustained recovery in the occupier market is unlikely to begin until 2024. With that said, leasing activity is in line with its pre-pandemic levels, and we have seen a slight uptick in investment volumes this quarter. With interest rates expected to peak in late 2023, we may start to see further activity as prices stabilise"