European Office Occupier Markets

Track and compare 36 key real estate markets in Europe with our interactive Office Rental Clock

The health, economic, and real estate impacts of the COVID-19 pandemic continued to disrupt markets across EMEA in Q2 and look to remain a primary determinant of performance in the second half of the year. Macroeconomic indicators point to the most severe contraction on record in the second quarter, to be followed by a strong but incomplete rebound in Q3 and Q4 as containment restrictions are eased, fiscal and monetary policy continue to backstop business finances and the labour market, and consumer behaviour gradually returns to normal. The crisis has accelerated existing trends evident before the pandemic: the retail shift toward e-commerce; the de-densification of office space; the adoption of remote working technology and communication tools. The next six months will continue to be characterised by high levels of uncertainty and market disruption, though transaction activity is set to rebuild, price discovery will be less opaque, and finance conditions will remain favourable. Structural changes to how office space is used will continue to emerge, incorporating lower employee density and deployment of remote work options, with the likely net effect of increasing office demand and raising the premium on the highest quality assets.
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JLL's Office Rental Clock demonstrates where each market sits within its rental cycle.
European Office Rental Clock
Exit city view

Source: JLL, July 2020

Note:

This diagram illustrates where JLL estimates each prime office market is within its individual rental cycle at the end of June 2020.

  • The Covid-19 pandemic has created a material uncertainty in real estate investment market performance. Across Europe, there is considerable variation in the extent of the human implications unfolding and their impact on economic activity, including the trajectory, duration, and extent of these impacts on all real estate sectors. Varying recent and ongoing policy responses across the region and mitigating implications will differ by market and sector.
  • 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.

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