Market reports

 

03/02/2012

Western Europe | Offices

Property Report Q4 2011

Activity is slowing in the major office markets - January 2012

Market conditions in the 9 major Western European cities resisted the ongoing economic downturn relatively well. Although occupier demand slowed down slightly in H2 2011, the current reduction in vacant office space was still the dominant trend. Prime rents and yields were stable in Q4.

Poor economic performance in Western Europe

- Euro area GDP should contract in both Q4 2011 and Q1 2012

- Unemployment rate has not peaked yet

 

 Office take-up on a slowly downward trend in Western Europe

- The German market is driving occupier demand in Western Europe

- Additional slight contraction in average vacancy rate

- Overall stability maintained in prime rents

 

Office investment volume was quite resilient in 2011

- Central Paris and German cities were the most dynamic markets

- But a slowdown in activity is already perceptible in London

- Prime yields were stable, except in Milan

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Pineau Christophe

Christophe Pineau
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