Office take-up across the major European markets has run at about 2 million m[sup]2[/sup] per quarter so far this year, 20% below last year's levels as short-term economic uncertainty has begun to bite, according to a forthcoming report from property adviser CB Richard Ellis. But the EMEA Office Market View also indicates significant local differences.
Office take-up across the major European markets has run at about 2 million m2 per quarter so far this year, 20% below last year's levels as short-term economic uncertainty has begun to bite, according to a forthcoming report from property adviser CB Richard Ellis. But the EMEA Office Market View also indicates significant local differences.
CBRE said weaker leasing activity reflected the uncertain economic environment and lower business confidence. 'Interestingly, aggregate take-up in the second quarter marginally increased over the first quarter, but the market is operating at lower levels than 2007’s record year.' Leasing levels in 2008 so far are comparable with those recorded in 2004-05.
Take-up levels in London have fallen almost 30% quarter-over-quarter, but CBRE said that there is no clear evidence the other main financial centres in Europe have been any more severely affected than other markets. Several cities including Paris and Frankfurt have witnessed an increased contribution from financial services companies to total take-up levels this year.
CBRE said the stronger areas of demand are mostly in Central & Eastern Europe, where higher economic growth is supporting increased take-up in several markets including Moscow, Warsaw and Bucharest.
