Access and Amenity Driving Office Demand
European office occupiers are increasingly prioritising location, with a marked shift back to core Central Business Districts (CBDs) across major European cities. Accessibility, proximity to transport hubs, and amenity-rich environments have become critical factors as organisations compete for talent and encourage employees to return to the workplace. Over the past twelve months, nearly 75% of office leasing activity occurred within core CBDs—a significant rise from pre-pandemic levels. This trend is evident in cities such as Frankfurt, Milan, Amsterdam, Madrid, and London, where demand for well-located, high-quality office space continues to strengthen.
The resurgence of core locations is driving notable market dynamics. Leasing volumes in core areas have increased by 10% year-on-year, while activity outside the core has declined by 4%. Vacancy rates in core markets have dropped to an average of 7.1%, compared to increases outside the core, and prime rents have grown more robustly in core locations. Investors are responding by focusing on assets in the core, with prime values rising and yields edging in. These shifts underscore the importance of location over quality alone, as occupiers seek spaces that support flexibility, collaboration, and hybrid working models.
