European Office Update

Drivers and Opportunities in the European Office Real Estate Market

The European office market is evolving as occupiers adapt to shifting workplace strategies, sustainability demands, and economic conditions. Cushman & Wakefield's European Office Market Update for H2 2024 offers a comprehensive analysis of leasing activity, investment trends, and the ongoing transition towards prime office spaces that align with ESG standards.

European Office Update – Key Takeaways:

• Office leasing activity continues to recover, with strong demand for prime and high-quality secondary spaces that meet evolving workplace requirements.
• Investment sentiment is stabilising, with selective capital deployment focused on assets offering strong fundamentals and resilience.
• Sustainability remains a priority, with occupiers and investors showing a clear preference for buildings that adhere to the latest ESG and energy efficiency standards.
• Office yields have shown resilience despite macroeconomic pressures, reflecting continued confidence in key European markets.
• Repricing dynamics and asset repositioning opportunities are shaping the investment landscape, particularly in core markets such as the UK, Benelux, Germany, and Southern Europe.

Why This Matters:

The future of office real estate is being redefined by structural shifts in demand, workplace strategies, and sustainability imperatives. For developers, investors, and occupiers, understanding these trends is essential for navigating an evolving market, capitalising on new opportunities, and making informed strategic decisions.