European Office Markets Update

A recent report by CBRE on Europe’s office markets highlighted Madrid’s first quarter take-up was just under 100,000 sq m (1.1m sq ft) which was a major improvement on other recent first quarters. Analyst believe that demand is being driven by occupiers taking advantage of low rents in prime central locations with many small and mid-size deals recorded.

In Paris there were two office deals of 40,000 sq m (430,000 sq ft) each, together with a surge of HQ consolidation projects, taking the French capital’s take-up to 506,000 sq m (5.4m sq ft), a substantial improvement on recent quarters.

In London, rents increased, including the West End recording a 5% prime rent increase to £105 per sq ft per annum in the first quarter of the year.

Amsterdam and Munich also saw rents increases of 1.5% each over the same period, with both cities experiencing demand for grade A quality buildings. As a result, Munich has just 35,000 sq m of space available in the city centre with prime rents to stand 5% higher than 12 months ago at €33 per sq m per month.

In Barcelona, two large transactions of 9,000 sq m and 13,000 sq m boosted the market and the number of office deals per quarter is reaching 300.

In Dublin, there have recently been large office deals involving Facebook (11,000 sq m ), Deutsche Bank (10,200 sq m), Susquehannah (9,600 sq m) and William Fry (9,000 sq m).

This trend is not confined to the West of Europe with the Scandinavian cities of Oslo and Stockholm both recording prime rental growth of 5.2% and 2.3% respectively over the same period.

Metropolis has a large archive of European office deals

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