Annual office take-up reaches post-GFC high as Paris and the German Big 5 outperform
The European economy faced significant political risk in 2017, ranging from the Catalonian crisis and ongoing uncertainty around Brexit negotiations to the extended coalition talks in Germany. However, these did not prevent economic growth from accelerating at its highest rate in a decade across the continent. The European office market has shown a similar trend to the economy. While we expect 2018 to pose a number of challenges, we forecast demand for offices to remain robust and rental growth to continue to outperform the 10-year 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