More than 5.7 million square meters (61 million square feet) of new office space will be completed in Europe in 2022, of which 49 percent is currently prelet, according to Savills.
A further 5.1 million square meters (55 million square feet) of space is scheduled for 2023, of which 23 percent is already prelet. In total over the next two years, this marks a 43 percent increase per annum on the average level of completions over the previous five years. However, rising construction costs as well as shortages of materials and labor are adding pressure to supply chains and delaying some office completions. Furthermore, they are affecting fit-out costs, which in some countries in Europe, such as the United Kingdom, normally need to be paid for by the occupier, and in others, such as the Nordics, by the landlord.
In terms of quantum of space, Berlin (1.8 million square meters/19 million square feet) and Munich (1 million square meters/10.8 million square feet) will have the
