Europe’s occupational market remains robust with high levels of demand in the third quarter of the year, said CB Richard Ellis today.
In its market report, EMEA Offices Market View, it said most of the major European markets generated a total of 26.9m sq ft of leasing this quarter – the third successive quarter in which there was more than 21.5m sq ft of leasing activity.
Increase on last year
This figure boosted the total for the year to date to around 80m sq ft which was an increase of 10% over the same period last year.
Germany produced the most notable increase as office demand has risen in line with the improving economy. Frankfurt, in particular, saw a marked acceleration, with take up growing at 192% quarter–on–quarter. Düsseldorf and Berlin also recorded significant quarterly increases of 100% and 32%, respectively.
London and Paris 'flat'
However, some of the larger markets such as London and Paris saw relatively flat activity against very strong second quarter levels although CBRE said demand for office space was still generally robust in the third quarter.
Increased demand and continued reductions in office availability have resulted in higher rents. A number of markets saw prime rents rise at a faster pace year on year, including Warsaw where rents grew by 65%, Stockholm where rents grew by 19%, and Helsinki rents which grew by 13%.