Occupational markets show early signs of optimism in Q4 despite continued market cautiousness.
- The European Office Prime Rental Index increased during Q4 2023, growing by +1.0% q-o-q and +4.4% y-o-y.
- Q4 take-up totaled 2.5 million sqm, up 20% q-o-q and down 6% y-o-y.
- European office vacancy increased q-o-q from 7.7% to 8.0% in Q4 2023, the highest rate since Q1 2016.
- Completions totaled 1 million sqm in Q4 2023, with Milan, London, and Paris accounting for the lion’s share of European office completions.
- JLL's Office Rental Clock demonstrates where each market sits within its rental cycle.
Note:
- This diagram illustrates where JLL estimate each prime office market is within its individual rental cycle at the end of February 2024.
- Markets can move around the clock at different speeds and directions.
- The diagram is a convenient method of comparing the relative position of markets in their rental cycle.
- Their position is not necessarily representative of investment or development market prospects.
- Their position refers to Prime Face Rental Values.