Mainland Europe records strong Q2 2016, while EU referendum slows London leasing
In Q2 2016, office leasing was down 4% y-o-y. However, excluding the UK, European take-up grew by 3% y-o-y, a clear sign of the upbeat sentiment on the continent. While in London leasing has clearly been affected in the run up to, and following, the EU referendum, general sentiment elsewhere in Europe is one of 'business as usual' with continued levels of activity as recorded in recent quarters.
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