Poor sentiment on European offices is being overplayed
Negative sentiment towards Europe’s office markets is being overdone, according to AEW.
In its 2023 Mid-year European Outlook report, the manager has said that opinions on the office sector remain negative in Europe primarily due to “extensive media coverage” of poorly performing US office markets, which are skewing perception.
In contrast with the United States, AEW says Europe’s core office markets are performing strongly. “In prime office, the negative demand trends of hybrid working, a slower return to the office and a first round of tech job cuts are partly offset by strong recent take-up by serviced and flex office providers, as occupiers prefer to not commit to long-term leases,” says the paper.
As occupiers are searching for centrally located, green and efficient office space in greater numbers, central business districts across Europe are experiencing very low vacancy rates. AEW also emphasises the positive net impact of limited and