Office rents could not sustain the upward trend started at the beginning of the year in the third quarter of 2013, according to Jones Lang LaSalle's Q3 European Office Clock.
Office rents could not sustain the upward trend started at the beginning of the year in the third quarter of 2013, according to Jones Lang LaSalle's Q3 European Office Clock.
Over the quarter, the European Office Rental Index fell by 1.1% as a result of rental declines recorded in Paris (-7.2%), Milan (-4.2%), Prague (-2.4%) and Barcelona (-1.4%).
JLL said the rental falls reflected weak demand and cost-consciousness on the part of occupiers. The contrasting prime rental increases in London (+2.6%), Munich (+1.6%) and Frankfurt (+1.5%), based on a combination of healthy demand and a shortage of quality stock, were not sufficient to offset these falls. Prime rents in all other index markets such as Brussels and Luxembourg remained stable.
However, the report suggests that the recovery of the European office sector continues, with the outlook improving alongside improvements in economic sentiment and growth. Conditions remain diverse, with markets moving at varying speeds. However, occupiers remain vigilant and improving sentiment is likely to be vulnerable to external shocks.
Click on the link below for JLL's Interactive Office Clock
