Solid Q1 confirms continued improvement in European office occupier market
Despite concerns about global market fluctuations and the impending EU vote in the UK, forecasts suggest further economic recovery across Europe in 2016. Overall, we expect demand for office space to remain strong this year, with take-up in line with the robust 2015 performance. While quarterly rental growth was marginally slower compared with Q4 2015, this is not unusual for the first three months of the year and general sentiment continues to be positive.
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