Take-up in the European office sector during the first nine months of 2007 reached an all-time high of 10 million m2, 12% more than the same period last year, Jones Lang Lasalle said in its latest European Office Property Clock. Demand was driven by continued corporate expansion, JLL said, and remained strong particularly in Germany's five major cities where it was up 25%. All European markets saw positive net absorption over the year which now stands at a record volume of seven million m[sup]2[/sup].

Take-up in the European office sector during the first nine months of 2007 reached an all-time high of 10 million m2, 12% more than the same period last year, Jones Lang Lasalle said in its latest European Office Property Clock. Demand was driven by continued corporate expansion, JLL said, and remained strong particularly in Germany's five major cities where it was up 25%. All European markets saw positive net absorption over the year which now stands at a record volume of seven million m2.

The European Office Property Clock indicates that most major office markets were in the 'up phase of their rental cycles at the end of the third quarter'. Record levels of occupier demand resulted in further falls in vacancy rate as the European office rental index grew by 1.5% over the quarter.

Alastair Hughes, CEO EMEA at Jones Lang Lasalle, commented: 'Decreasing vacancy rates in 18 out of 24 European markets driven by continued strength of demand and record take-up paints a positive picture for the remainder of 2007. Whilst we see this activity stabilising into the first half of 2008 as the global credit crunch impacts, we remain positive about the continued strength of the European office market going forward as demand remains strong.'

The occupational market is being supported by continued falling unemployment across Europe and office markets saw sustained prime rental growth as demand remained persistent. Prime rents are now 11.6% above the figures for the same period in 2006 . Eleven out of 24 markets saw growth over the quarter, led by Utrecht (+7.1%), Prague (+5.0%) and London (+4.6%), with all other markets remaining stable.