Availability of larger office premises totalling more than 5,000 m2 has decreased by 12% in 22 key European markets in the last 12 months, according to new research published by Colliers International.
Availability of larger office premises totalling more than 5,000 m2 has decreased by 12% in 22 key European markets in the last 12 months, according to new research published by Colliers International.
The largest falls were seen in Moscow, Central London, Berlin, Frankfurt, Madrid and Lisbon.
The lack of good new large office suites in many of Europe’s major cities poses a real threat to companies' expansion plans, Colliers said.,
'In recent months we have seen clients lose their favoured options by delays in their decision making process. We are advising our clients to be pro-active in their key city metro strategies and we expect to see an increase in pre-let activity as a result,' commented Simon Ford, director, EMEA Corporate Solutions at Colliers International.
Corporates are facing a lack of choice, especially when it comes to a central location, he added. 'Our research tells us that only 19% of the options available were in central business districts. And we expect further constraint on the back of increased demand for space fuelled by an improving economic situation across Europe.'
In total, there are 723 larger offices (5,000 m2) available in the major European cities (if previously occupied, refurbished and under-construction properties are included), with Moscow (71), Central Paris & La Défense (62), Amsterdam (61) and Munich (52) coming out on top.
Moscow quite literally tells a tale of two cities; it offers the highest number of large newly-built premises in Europe (50 out of 60 available larger offices in completed buildings). However, the city has recorded a significant decrease in the availability of large premises under construction.
Central London has seen a sharp reduction in the total number of large offices available (down from 60 to 44) within the past year. 'The relative quality of what is available has also fallen. Occupiers prepared to look beyond Central London will have a much wider choice,' added Ford.
In Southern Europe, Madrid has seen a significant decrease in the number of large offices available (from 42 to 28) due to a lack of new speculative office projects and strengthening demand. Milan’s office market has also enjoyed an increase in take-up resulting in smaller availability in the CBD and a glimpse of rental growth.