The Eurozone is home to some of the world’s most affordable premium office space, says JLL in its annual Premium Office Rent Tracker (PORT).
The average rent per square foot per year in the Eurozone is $63 (€53), compared to $85 (€72) in the Americas and $111 (€94) in Asia Pacific, according to the report, which underlines that cost is only one criterion in judging a location.
Access to talent, amenities and technology infrastructure are increasingly key for both occupiers and investors, it notes.
'Whilst cost is a critical factor when searching for office space, increasingly it’s just one piece of the puzzle,' said Neil Prime, head of office agency, UK, JLL. 'Corporates are becoming increasingly aware of how their real estate can be a powerful tool in the war for talent and in increasing employee productivity, and this is impacting decisions on location and office types.'
He added: 'Recent JLL research found that only half of 7,300 employees globally felt their workspace allows them to work completely effectively and this is an important stat for both corporates and investors who want to future proof themselves.'
The annual Premium Office Rent Tracker (PORT) compares premium office occupancy costs across 54 markets in 46 major world cities. The Eurozone's most competitive markets include Warsaw ($40/€34), Brussels ($48/€41), Amsterdam ($49/€42), La Défense, Paris ($52/€44) and Berlin ($56/€48).
On the other end of the scale, the most expensive premium office rents globally are found in Central in Hong Kong ($323/€274), New York’s Midtown ($194/€165) and London’s West End ($193/€164).
Technology-rich cities like London (West End: $193/€164; City: $108/€92) and Stockholm ($94/€80) command some of Europe’s highest premium rents thanks to their deep talent pool, and corporate activity is also increasing in other European hotspots which combine relative affordability and a reputation for good quality of life, the report says.
Leasing volumes in Warsaw and Berlin have risen significantly since 2014, and take-up in Amsterdam is at its highest since 2008.
'La Défense in Paris is a great example of a market which offers real, affordable opportunity to access premium office space in a competitive city where premium rents can reach upwards of $85 per square foot per year, and which attracts global talent and innovation,' said Marie-Laure De Sousa, head of office agency, France, JLL.
'With the Grand Paris development and upcoming Olympic Games, the La Défense region is only going to grow in value both in terms of returns for investors but also the quality of life it offers the businesses that occupy and the people that work inside the buildings.'
