Spotlight: European Office Value Analysis – Q3 2024
"Tide is turning for European office investment as debt becomes accretive to returns"
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"Tide is turning for European office investment as debt becomes accretive to returns"
"Global prime office costs have seen an increase of 3.1% from last year as demand for prime office space remains high, while densification trends vary regionally"
"Build costs increasing in line with inflation"
"Legal occupiers looking to attract and retain top talent, drive performance, and prioritise ESG requirements are demanding premium space that provides vibrant employee experiences and positive environmental impact. "
"European office yields remain stable at 4.9%, as pricing expectations begin to align"
"Prime office rents in major cities around the world have risen 3% in the past year, while significant premiums have emerged for top-tier space over the wider Grade A market"
"Our analysis of the top 10 prime office occupier deals by size across global cities shows that expansions and renewals still dominate activity, in spite of rising costs and broader economic uncertainty. Tech remained the top industry by deal volume, followed by finance."
"Prime and secondary rents for European offices have started to diverge as occupiers focus on better quality office stock. "
"Concessions and inducements hold sway"
"Improving occupancy rates, increasing competition for top-quality spaces, and emphasis on sustainability have supported office demand over 2023 and look likely to continue through 2024"