Savill’s recent market outlook examines 25 European markets and the supply and demand equilibrium. They state that 5.23m square feet of office space is expected to be delivered this year, up 24% from last year’s completions. The development pipeline corresponds to approximately 4% of stock. Fifty-four percent of the space in the 2021 pipeline is already committed and they project 7% YoY recovery in take-up for 2021, albeit 33% below the five-year average.
In terms of office space requirements, the report points to redesign of office spaces to adapt to employee priorities for safety and wellness. Flexible working is in demand and some companies are reducing overall space requirements while others are adopting hub and spoke models and on-demand flexible office space closer to residential areas. Flexible and mixed-use assets are factors of choice for occupiers. Savill’s points to increased competition among landlords, citing operational efficiency and quality of services as key factors of consideration for occupiers.