Luxembourg’s office market is on the verge of collapse as the supply for space struggles to satisfy the demand created by the booming service sector.
The widening gulf between supply and demand is indicative of the current trend in Europe’s wealthy capitals, with only 19,000 sq m available in Luxembourg compared to an occupation rate of 1.82m sq m. Elsewhere, the vacancy rate is a mere 6% in Brussels, 5% in Frankfurt and London, and only 4% in Paris.
Take up rates soared to 90,000 sq m in 1999, 20% up on 1998 and 64% on 1997, with the result that it is now impossible for companies with more than 50 people to find suitable premises.
Atenor, CODIC and LeaseInvest are planning to build some 50,000 sq m of offices in the city in a bid to alleviate the critical situation, however a site is yet to be decided. Sale and lease agreements are also offered as a possible antidote to the shortage.
L’ Echo, 04 February 2000, page 15
