Take-up
Demand for office space stabilized in Europe in 2024. The overall result remained below the long-term average (-15%). This reflects both a challenging economic environment, and structural changes in the office market where occupiers focus on smaller, more efficient and flexible premises.
Letting in the 18 main European office markets amounted to 7.96 million sqm at the end of 2024, in line with the 2023 results. Economic uncertainty in the major European markets continued to weigh on demand.
Rents
Prime rents continue to be supported by two factors: the appeal of high-quality buildings in central areas and the limited availability of those units.
The gap between prime and average rents is expanding reflecting the dichotomy of office markets.
Vacancy
Low availability prevails in central submarkets, particularly for new buildings that secure demand. Much higher vacancy rates are found in peripheral office districts and for second-hand space.
Empty space remains at a reasonable level. The overall European vacancy rate stood at 8.8% at the end of 2024, rising by +70bp compared to the same period last year.
