Central London offices have held their own against European rivals, according to research from BNP Paribas Real Estate.
A study of Q3 office take-up in 25 European cities show London ahead of the pack with a 63% increase to 9.25m sq ft, against 5.67m sq ft in Q3 2021. However, Dublin is doing better with a 175% increase in take-up.
Ben Thomson, head of tenant representation at BNP PRE said: “Despite the hybrid working revolution, and some occupier consolidation, overall demand for office space has been incredibly robust this year.
“Occupiers are clear in what they want in a post-Covid world: amenity-rich spaces to retain and attract talent and clients, sustainable buildings which support their ESG ambitions, and prime locations close to transport hubs.”
The leaders were followed by Warsaw, up by 54%, and Madrid, up 33%. Central Paris and Milan both registered a 27% increase.
BNP PRE’s head of city leasing, James Strevens, added: “While this trend is evident throughout key cities in Europe, it’s no surprise that demand in London has seen such a sharp recovery. As one of Europe’s largest urban economies, it remains hugely competitive on the world stage, attracting occupiers to its highly skilled talent pool, leading legal and regulatory systems, and influence over culture and arts.”
The professional services sector dominated take-up in central London with a 27% share, followed by banking and finance on 19%.
But central London rents did not match the pace of increases in rival cities, rising by just 6% over the 12 months. Warsaw’s rose by 13%, Milan’s by 10% and Dublin by 9%.
Central London vacancy stands at 8.8%, with the West End at 4.4% and City 11.4%. Supply has increased by 2% to 19.97m sq ft.
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