A report on the resilience of European office markets

While office investment markets in Europe in 2023 are expected to record a post-GFC low annual volume, a recent AEW research report states that AEW “think[s] investors’ concerns about the office occupier market are overstated.”

European office vacancies are expected to peak at 7.9 percent by 2024, as new development deliveries begin to slow down, says the report.

“The limited new supply in central office areas combined with a recovery in post-lockdown take-up is driving rental growth,” the authors write.

The most resilient European markets in the post-COVID office environment are Copenhagen, Bristol, the Hague, Utrecht and Hamburg, says AEW.

The report amplifies the “shift to quality” trend happening in many office markets worldwide, as companies seek to prioritize quality location, amenities and workspace for their employees.

“Secondary offices that no longer meet EPC and ESG standards for investors and occupiers are more likely to