Strongest Q2 European office take-up on record
A year ago, economic growth in Europe was outstripping expectations, but H1 2018 saw a slight deceleration. Germany and France are expected to record a step down in growth this year and next, although forecasts remain healthy in the context of the recent past. In the UK, ongoing political uncertainty is likely to continue to impact confidence, though recent economic data has been more upbeat than expected. Nevertheless, the European office market shows little sign of slowing, with current economic and employment growth providing enough traction for solid take-up levels. We expect demand for offices to remain strong and rental growth to continue to outperform the long-term average.
Prime Rent represents the top open-market rent that could be expected for a notional unit of the highest quality and specification in the best location in a market, as at the survey date.
The Prime Rent reflects an occupational lease that is standard for the local market. It is a face rent that does not reflect the financial impact of tenant incentives, and excludes service charges and local taxes. Stockholm is the only city where it is market practice to quote the rent as Prime Effective Rent, therefore the rent is including incentives (i.e. rent free periods as well as relocation costs, tenant fittings, etc.). The Prime Rent represents Jones Lang LaSalle’s market view and is based on an analysis/review of actual transactions for prime office space, excluding any unrepresentative deals. Where an insufficient number of deals have been made for prime office space, an assessment of rental value is provided by reference to transactions generally in that market adjusted accordingly to equate to prime.
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Head of Offices Research - EMEA Research
+31 (0) 650 671 152
Senior Analyst - EMEA Research
+44 (0) 207 852 4402