Europe

PROPERTY REPORT Office Market in Europe

may 2010

Slowdown in vacancy rate growth

European countries are finally out of recession but the economic environment remains very uncertain. If some good news is arriving from economic indicators such as GDP growth, consumer confidence and international trade; the financial crisis of Greece is in the headlines. In fact, the whole monetary union is under pressure and the political leaders have to find a way to dampen and put out the Greek threat. The ongoing crisis could have some unpredictable effects on a recovery that is still fragile.

In almost all European markets, take-up activity continued the positive trend registered in Q4 2009. Even though the very good results of the last quarter of 2009 were not reached again, take-up volumes are well above the low levels recorded in Q1 2009. A crisis is always a moment full of good opportunities. Companies that are still looking to reduce their costs now have the possibility to secure office space in good quality buildings at a reasonable and interesting rent. Therefore, takeup activity will continue to be mainly fuelled by cost-cutting relocations.

Author(s): several

Source: BNP Paribas Real Estate

Published: 03.05.2010