In Europe, the office sector faces an imminent challenge to evaluate, create and execute the right strategies for the large swathe of assets that face the dual issues of not meeting occupier needs nor being sustainable (in line with upcoming sustainability legislation).
We will soon face a situation where the longer we wait to make the changes we know must come, the more costly it will become.
Office markets across Europe are at risk of seeing a significant portion (76%) of office stock rendered obsolete by the end of the decade unless action is taken now.
Repositioning those assets in need is a real opportunity and in many ways a necessity.
Landlords that reinvest in their sustainability credentials, amenities, sense of place and community engagement to move their assets to deliver the best quality space will benefit from this flight to quality.
Sustainability, both in terms of legislation and occupier expectation, is a significant driving force in the risk of obsolescence in Europe.
Around half the existing stock is over thirty years old. Just 14% has been built or substantially modernised in the last ten years.
The flight to quality trend is accelerating, resulting in demand for the best quality space exceeding supply in most major cities.
Cushman & Wakefield has formed a pan-European, multi-disciplinary team as part of a global response to the office sector’s need for rethinking, reimagination, repositioning and repurposing.
We encourage you to read the report and reach out to our specialists to get more information on the research and our office repositioning solutions.