Demand for office space in Europe recovered sharply last year, recovering from the effects of the coronavirus pandemic, which contributed to rental growth and partially compensated for the price correction associated with rising interest rates, according to a Cushman & Wakefield review.
According to the experts, in total 12.6 million square meters of office space was leased in Europe in 2022. The figure rose by 15% compared to the previous year, when many employees of companies worked remotely because of the pandemic.
Rents were up 6.2% in the fourth quarter of 2022 from a year earlier. This is the fastest year-over-year increase since mid-2008.
The strong demand for office space is due in part to companies looking to bring employees back to their offices after the removal of anti-covid restrictions.
“Tenants are focused on taking the best offices in their segment in the most attractive locations to attract and retain employees,” said Nigel Almond, director of data analytics at Cushman & Wakefield.
Companies also want to occupy offices in buildings that meet environmental standards, which have become more stringent, the expert said.
Analysts recorded an increase in activity in 23 out of 30 European markets of office buildings, which it monitors. Meanwhile, it was not active enough to compensate for the increase in the amount of available office space.
According to the company, the total available office space in Europe increased by 0.7% to 22.6 million square meters. The lowest level of availability was recorded in Luxembourg – 4,2%.
