European and Russian research teams of CBRE report that returning occupier confidence and improving office take-up will drive rental growth across EMEA in 2014.

European and Russian research teams of CBRE report that returning occupier confidence and improving office take-up will drive rental growth across EMEA in 2014.

According to the latest data from CBRE aggregate office take-up across Europe increased by 9.6% in Q4 of 2013, as improving economic sentiment in a number of European markets alleviated occupier caution.

Take-up in Central London totalled 365,000 m2 in Q4, representing a 9% increase quarter-on-quarter, capping a 39% rise year-on-year. The increase in leasing activity led the City of London market to experience its first rental growth since 2010, with prime rents increasing by 4.5% in Q4. Milan exceeded 100,000 m2 take-up in Q4 for the first time since 2011. Warsaw recorded highest ever annual office take-up at 457,000 m2.

Elena Denisova, head of office agency in CBRE, Russia, said: 'Growing take-up in European office markets is another evidence of steady recovery of the Eurozone economy after world economic crisis. In Russia rental rates are expected to remain under downward pressure from decreasing rates of growth in economic indicators and relatively large new delivery of 2014's. In this situation we might see demand shifting to cheaper quality office renting opportunities and more flexible landlords’ strategies when discussing commercial terms.'