Office Space Market Overview Q4 2018

Some interesting findings:

  • The vacancy rate reached an 11-year low of 8.5%. We expect this percentage to increase slightly in the second half of 2019;
  • Average rental rates remained stable and landlords still have the upper hand in the negotiations process. We expect this trend to continue at least until Q3 2019:
    • The average asking rental levels for Class A office buildings are between EUR 12 – EUR 14. The Mall and Paradise Center office hubs command the highest rental levels;
    • For Class B these are EUR 8 – EUR 11.
  • About 160,000 sq. m of class A office space will be delivered in 2019;
  • A sharp decrease in office space deliveries is expected in 2020. This is likely to further decrease the vacant office space and further increase landlord’s bargaining power.

To see the complete report click on the image below.