European Office Occupier Markets
Economic activity in Europe moderated in 2018 and growth forecasts continue to be lowered. Looking ahead, the outlook for Germany has been downgraded on the back of a struggling manufacturing sector, and Brexit-related uncertainty continues to colour the UK outlook. Nevertheless, domestic fundamentals remain sound and there are potential signs of green shoots in the Eurozone economy. Looking ahead, we expect demand for offices to remain above the long-term trend. Coupled with the prevailing low supply environment in Europe, this should continue to support rental levels in most office markets across the region.
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