Office take-up slips as confidence declines: JLL

Office take-up across Europe fell by 2% to around 2.9 million m² in the final quarter of 2011, according to a new report by Jones Lang LaSalle. The figure marked a decline of 9% on the year-earlier period, the adviser said, due to subsiding corporate confidence and increasing uncertainty during the second half of the year.

However, some markets remain firmly in focus for occupiers, with 15 of JLL's core 24 European Index markets seeing 2011 take-up volumes exceed the previous year, most notably Munich and Luxembourg.

All CEE markets saw strong occupier demand across 2011, driving gross take-up 21% higher than 2010. Moscow, Prague and Budapest were more active markets q-on-q while a range of 2nd and 3rd tier cities within CEE are coming into focus as occupiers seek to make efficiencies through BPO and Shared Service Centre activity.

The Brussels market saw leasing volumes amount to 124,000 m² in Q4, well below the 10-year average. However, occupier sentiment improved somewhat in the second half of the year, the adviser said. Due to the virtual absence of speculative development in the CBD, choice is expected to tighten in 2012, although restructuring in the financial sector could result in the release of some prime office space.