Strong occupier activity pushes European office take-up to strongest Q3 on record
In 2018, the European economy has seen a deceleration in economic activity, albeit modest. Both Germany and France are expected to see a step down in growth this year and beyond, though rates remain healthy by the standards of the last decade. Brexit continues to colour the UK outlook, but growth is set to continue. Nevertheless, the outlook for the European office market is encouraging. As unemployment continues to fall across the region, we expect demand for offices to remain solid and rental growth 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