European office markets star to rebalance

Despite negative investor sentiment, the European office occupier market indicators show solid post-COVID recovery, according to AEW. Take up is up nearly 50 percent since its third quarter 2020 low point, prime rental growth is positive since fourth quarter 2020 and the vacancy rate has stabilized at just below 7 percent.

It is still too early to conclude at what level office demand will finally stabilize as companies define their new hybrid working practices.

The report explores how occupiers are dealing with hybrid working in a post-COVID world, the impact of higher financing and construction costs on new office supply, and the most resilient locations across the 32 European office markets it analyses.

To read the full report, click here.