European Office Occupier Markets
In Europe, economic growth in Germany is expected to slow further, with industrial production still looking weak, impacted by the ongoing decline in global trade volumes. In France, internal pressures on the economy are easing, but external risks continue to loom. In the UK, the Government has delayed Brexit once again and a leadership change further complicates the economic outlook. Nevertheless, we expect demand for offices in Europe to remain above the long-term trend. Coupled with the prevailing low supply environment across the region, this should continue to support rental levels in most key office markets.
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.
Please contact us directly to discuss any of the issues raised in this report or for more information about our research capability.
Head of Offices Research - EMEA Research
+31 (0) 650 671 152
Senior Analyst - EMEA Research
+44 (0) 207 852 4402