Europe’s occupier markets continue to benefit from positive economic indicators according to Cushman & Wakefield's Q3 2017 The DNA of Real Estate Report.
Rental growth in the European office sector accelerated to an annualised 2.7% from 2.1% in the previous quarter following a 0.5% quarterly increase in rents. Logistics rental growth turned positive (+0.9%) in the third quarter following four quarters of negative growth, but this was not enough to arrest the annual decline in rents (-0.4%). Rental growth was negative (-0.4% q-o-q) for high street shops with 43 of the 45 markets reporting no growth over the quarter.
Across Europe, there are similar trends in many segments of the market, with rents broadly accelerating, with the Nordics and Germany also benefitting from strong growth, especially across the office sector in the third quarter.
Nigel Almond, Head of Data Analytics, EMEA Research at Cushman & Wakefield, said: “Positive demand and limited supply of prime space is placing upward pressure on rents in a number of office markets, especially across Northern Europe. Over the third quarter, Brussels (+7%) and Luxembourg (+6.4%) recorded the strongest quarterly growth leading to double digit growth on an annualised basis."
Download the full report |
