Feel the squeeze
According to research from Savills, a lack of available office space in prime CBDs across Europe is set to lead to a fall in take-up and further rent rises throughout 2018, adding to the 4.9 percent prime rental increase seen during 2017.
The firm’s latest European Offices Market Report found that total office rental growth in 2017 against 2016 was 4.9 percent, but that full-year take-up volume fell by 3 percent due to a lack of stock. Prime CBD rents grew by 3.3 percent in Q3 2017 year-on-year, while in non-CBD locations they rose by 1.7 percent. Savills predicts that, as good-quality space remains limited, prime rents will continue to grow in some locations in 2018, with specific price corrections occurring after 2019 as new office developments are completed.
Total take-up across Europe reached 8.2 million square metres in the first three quarters of 2017, says Savills; this was on a par with the same period in 2016 and 2 percent up on the five-year averag