Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

European Offices Recapture Their Momentum With Leasing Activity Up 15%

13/02/2023
  • Total of 12.6 million sq m leases across Europe, 15% growth on 2021 
  • Leasing activity remains well above the fifteen-year average of 10.3 million sq m 
  • Net absorption positive across all quarters in 2022 and above ten-year average  
  • Vacancy stabilised at 8.1%, below long run trend as completions and construction activity shows modest fall 

London, 13 February 2023 – Market analysis from real estate services firm Cushman & Wakefield shows that Europe’s office leasing markets are in rude health as they reap the benefits of markets fully reopening from Covid-related restrictions. A total of 12.6 million sq m of office space was leased in 2022, a 15% jump on the 10.9 million sq m leased in 2021, and sits well above the fifteen-year average of 10.3 million sq m. 

The growth in activity was evident across the majority of markets with 23 out of 30 markets tracked reporting year-on-year growth in leasing activity. Major markets including Milan (+37%), Warsaw (+34%), Madrid (+32%), Paris (+26%) and London (+22%) all showed robust levels of activity. 

Nigel Almond, Head of Data Analytics at Cushman & Wakefield, said: “As occupancy levels pick-up, occupiers are focussed on taking the best-in-class space in the most desirable locations to attract and retain staff and ensure they have the right space to enable more flexible ways of working as well as ensuring there is the right space for collaboration, staff wellbeing and connectivity. With a growing number of countries now demanding tighter environmental standards, occupiers are focussed on securing space in buildings that meet the highest standards.” 

The drive for good quality space has helped drive rental increases on prime offices, which rose by 6.2% year-on-year in Q4 2022 compared with just 1.7% in Q4 2021. This was the strongest annualised reading since mid-2008.  
Almond added: “The demand for new space has not been at the expense of downsizing. Across the markets tracked net absorption levels was positive across Europe in every quarter in 2022, having been largely negative since mid-2020. Quarterly absorption averaged over 643,000 sq m in 2022, well above the ten-year average of 530,000 sq m.” 

The total amount of space available for occupation across Europe showed a modest 0.7% increase year-on-year to 22.6 million sq m. Equivalent to 8.1% of total stock. This ratio has been stable at this level over the previous four quarters. 

Luxembourg has the lowest ratio of available space to stock at 4.2% with three German markets – Hamburg (4.4%), Berlin (4.7%) and Munich (5.2%) – in the lowest five markets, with Paris fifth at 5.5%. Many cities are benefiting from stronger levels of take-up and limited construction activity, which is helping to keep the amount of available space at relatively low levels. 

Whilst the market is not immune to broader economic headwinds, over recent quarters we have seen completion levels start to fall and the level of construction activity fall too. A total of 4.3 million sq m of new space was completed in 2022, down from 4.8 million sq m in 2021. The amount of space under construction totalled 15.2 million sq m at the end of 2022, down from 15.6 million sq m in Q4 2021. This is equivalent to 5.4% of stock. The lowest rate since 2017 and will help insulate the market from what is expected to be a more challenging environment in 2023. 

About Cushman & Wakefield 

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 52,000 employees in over 400 offices and approximately 60 countries. In 2022, the firm had revenue of $10.1 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake External Link on Twitter.

MEDIA CONTACT

Richard Coleman, Head of Communications EMEA
Richard Coleman

Head of EMEA Communications • London

What's new

Card-image-News-UK-Sensor-City-CGI-Liverpool
Cushman & Wakefield Appoints New Hospitality Sector Lead for UK & Ireland

Cushman & Wakefield has named Ed Fitch as Head of Hospitality UK & Ireland. In this new role, Fitch will be responsible for delivering best in class solutions for Cushman & Wakefield’s hospitality sector clients across its core service lines of Capital Markets, Development & Investor Services.

Richard Coleman • 24/04/2023

James-Young
Cushman & Wakefield Expands James Young’s Head of Investor Services EMEA Role To Include Asia Pacific

Cushman & Wakefield, a global leader in commercial real estate services, has expanded the role of James Young, Head of Investor Services EMEA, to also include the Asia Pacific region. The promotion will take effect from January 2023.

14/12/2022

Regent Street, London W1 at Christmas
The Crown Estate Appoints Cushman & Wakefield As Hospitality and Leisure Advisors Across Its London Portfolio

The Leisure & Restaurants Team at real estate services firm Cushman & Wakefield, led by Matt Ashman, Megan Hutchinson and Matt Englender, has been appointed by The Crown Estate to advise on the Hospitality and Leisure aspects of its London portfolio.

14/12/2022

Insights

UK SELF STORAGE ANNUAL REPORT 2022
Research

UK Self Storage Annual Report 2023

The Self Storage Association UK Annual Industry Report provides a comprehensive overview into the self storage sector.
Philip Macauley • 16/05/2023
Oxford Street, London
MarketBeat • Office

Central London MarketBeat

Central London Marketbeat provides an overview of the occupational and investment markets across Central London on a quarterly basis.  

Liberty Strong • 09/05/2023
Build to rent
Research • Residential

Build To Rent Quarterly Report

Our latest report takes a deep dive into US multifamily operational data.
Mark Clegg • 19/04/2023

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS