Office vacancy rates in the European core markets remain low, particularly in cities such as Paris, Cologne and Hamburg. This is according to the real estate services company Savills. Although office take-up in Europe fell in the third quarter of 2023, the real estate services company expects a slight increase in Europe in 2024.
However, German cities could continue to experience a decline. Despite a slight increase in vacancy rates in German cities, high-quality office space remains scarce. This increases competition for this space. The lack of first-class office space and construction delays are increasing competition and rents, particularly in central locations.
Savills expects rental growth for prime office space to continue. Older properties in peripheral locations may have to offer more incentives if they are not extensively refurbished. Interested parties can find further information at savills.de.
Source: savills.com
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