Lockdown 3.0 and vague recovery
The strong increase in the number of cases across Europe means that the race to vaccinate the population will dominate 2021. However, the pace of vaccination may appear slow in the EU, compared to other countries such as the US or even the UK.
2021 will start on a softer note
After a robust recovery in Q3, the economy looks set to slow into the year-end following renewed lockdowns in many European countries. Risks, however, remain predominantly skewed to the downside, as more and more countries have already decided to tighten their restrictive measures again.
Office yields still low
Despite many cities witnessing the end of office prime yield compression, only a few have experienced an upturn. Some such as Berlin, Paris and Milan are still seeing reduction.
Office take-up plunged in 2020
Office take-up has been severely hit by the pandemic and reached its lowest total since 2009, shrinking 41% relative to 2019. The plus side is that although vacancy increased in most markets, it remains low, and prime rents were not really affected.
Office space will adapt
The office market will be influenced by the rise in remote working. However, companies will adopt different strategies and offices will remain important for both businesses and employees.