Robust leasing activity in Q3, with no signs of waning demand across most of Europe
In Europe, politics rather than economics continue to dominate. The recent German elections delivered a fourth term for Angela Merkel, albeit with a reduced majority. Elsewhere, ongoing uncertainty surrounds Britain’s withdrawal from the EU, while the political standoff in Spain is cause for concern. Nevertheless, the European recovery remains on track for a post-GFC high in 2017. Indeed, accommodative policy, solid domestic demand and reviving job creation are driving occupier activity in Europe.
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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