Office take-up continues to rise despite economic woes: JLL

Overall office leasing volumes continued to improve in Europe over the third quarter of 2011 despite variations in prime rents, according to a new research report issued by Jones Lang LaSalle on Tuesday.

Prime rents increased in Stockholm, The Hague (both +2.4%), Hamburg (+2.2%) and Milan (+1.9%), but were offset by decreases in Brussels (-3.2%), Dublin (-3.0%), Madrid (-1.9%) and Edinburgh (-1.8%).

Despite these changes, the Jones Lang LaSalle European Office Index is unchanged. Office rents in CEE markets remained stable compared to the previous quarter, reflecting continued positive demand.

Despite ongoing concerns, gross take-up of European office space increased to 2.9 million m² in Q3 2011, up 6% compared to Q2 2011 and 16% higher than Q3 2010.

'Demand is fluctuating across Europe. In the first three quarters of 2011, London office take-up fell by 40% whilst Berlin, Munich and Stockholm grew strongly. In CEE the Q3 figures are 29% higher than the same period last year,' said Bill Page, JLL's head of UK and pan-EMEA Office Research.

New office space completions throughout Europe also remain low. Across the first three quarters of 2011, 2.3 million m² was completed, about 45% below the 10-year average. 'Shortages of good quality space continue to be an issue in many markets,' Page added.