Gradual recovery in European office market continues
- July 1, 2024: Vol. 18, Number 7

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Gradual recovery in European office market continues

by Marek Handzel

The European office market is gradually recovering thanks to a stable vacancy rate, rising prime rents and a consolidation in take-up, says BNP Paribas Real Estate.

Figures from the manager, covering 29 European countries, show that the overall vacancy rate in Europe remains stable at 7.6 percent. The trend varies by market, but Munich, Frankfurt, Paris CBD and Berlin stand out for their significant increases (+100 basis points or more), while Milan and Warsaw have seen their rates fall. The rise in some markets reflects a growing mismatch between supply and demand, particularly in terms of location, with availability scarce in central districts. At the same time, high vacancy rates in suburban areas and for secondary-quality assets remain in place.

Prime rents are still being pushed up by a lack of new buildings that have green energy consumption and high-quality services, maintaining a long-standing trend in Europe.

“Continued growth in prime rents over the

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