TMT boosts share of European office market

The Technology, Media & Telecommunications (TMT) sector has significantly increased its share of the total leasing market, according to Savills' latest European office market report.

The sector's share has increased to 20% from 15% in 2009. Savills noted that this increase is a reflection of the emergence of the sector throughout many of the local European markets that it tracks.

The business and consumer services sector was the main driver of occupational demand in the European office market in 2012, accounting for a 28% share, while the public sector (public services, education and health) and the insurance and financial sector have seen a weakening.

Leasing activity in general across Europe declined 2.2% in 2012 compared to 2011, however cities such as Frankfurt, Amsterdam, London City, Paris, Vienna, Warsaw and Brussels saw higher levels of take-up due to a number of substantial deals.

Eri Mitsostergiou, director of Savills European Research, commented: 'Whilst the overall office take-up picture for Europe is lower, there are pockets that are either in line with or exceed the five-year average take-up levels. Warsaw, for example, is one of the strongest outperformers with its 2012 take-up level 21% above the five-year average, while the German markets are also between 7% and 30% above their five-year average.'

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