Europe’s average office occupancy rate has risen from 55% to 59% over the last year, says Savills, with Madrid now standing at 68%, almost back to the European pre-pandemic average rate of circa. 70%.
London West End and Paris CBD have the second and third highest rates, at 61% and 59%, respectively. Warsaw has seen the highest surge, increasing from 46% to 56% over the same period of time. Over the last six months, Prague and Dublin observed the largest jumps, rising to 57% and 52%, respectively.
The international real estate advisor says that weekday office attendance is gradually becoming more skewed towards peak days, with attendance on Tuesdays the highest at 68%, followed by Wednesdays and Thursdays (64% for both).
Mike Barnes, Associate Director in Savills European commercial research team, says: “As we anticipated during our last survey six months ago, average European office occupancy rates have started to stabilise around the 60% mark, which implies that companies and employees are finding an equilibrium that works for them. The European cities that are showing a pattern of high occupancy – namely Madrid, London West End and Paris CBD – are supported by good transport links and have a broad mix of tenants from different sectors.”
Rebecca Webb, Director of EMEA Cross Border Tenant Advisory at Savills, comments: “Given the high expectations of top talent, including ESG and workplace flexibility, occupiers are competing for the best buildings to attract and retain staff. Hence, we see higher occupancy levels in the buildings that meet the demands of modern workplace needs. At the same time, we continue to see others renegotiate leases or move to a different building to better suit the needs of the business.”