Office take-up back to historical levels in 2022. After a promising end to 2021, recovery was confirmed for the European office market in 2022: occupiers' growing demand for sustainable buildings that address CSR issues and offer facilities adapted to hybrid work styles continues to drive rental demand. All told, annual take-up for the 17 main markets came in at 9.169 million sqm, up 10% vs 2021. This figure brought it back in line with the long-term average.
*17 main European markets: Amsterdam, Barcelona, Berlin, Brussels, Dublin, Cologne, Düsseldorf, Frankfurt, Hamburg, Central London, Luxembourg, Madrid, Milan, Munich, Central Paris, Rome, Warsaw.
Post-Covid rebound losing momentum
Prime rents are held up by demand for quality
With hybrid working patterns becoming more entrenched, occupiers are looking for the most established central districts and flexible, modern buildings. The office is becoming an essential corporate tool, whether to attract and retain talent by maximising occupier wellbeing, provide optimal facilities to encourage team production or to fulfil environmental ambitions and limit energy consumption. This appetite for central and prime assets is supporting the growth of prime rents in almost all markets
comments Laurent Boucher, President of BNP Paribas Real Estate Advisory Europe 7.
We note contrasting patterns. On the one hand, new assets in the most sought-after areas are experiencing a continuous increase in rents. On the other hand, second-hand assets or those located in secondary areas may increasingly suffer from occupiers’ lack of interest
adds Laurent Boucher.
Vacancy rate remains stable and controlled
Yet investment in offices has fallen significantly
Prime office yields continue to expand
Nevertheless, key interest rates are now certainly close to peaking and should stabilise in 2023, or even fall again at the end of the year.
concludes Laurent Boucher.