Savills, Spotlight European Investment
Savills shared, via a recent overview of European market activity, they’re seeing more enquiries for space and that the size of the requirements are larger than average. Savills research team believe companies see their employees gradually returning to the office as part of a new hybrid working model; this model however involves occupiers reassessing their property requirements.
It’s expected this will translate to an intensified demand for the best-in-class office space in good locations. Subsequently, Savills also believe this will put more pressure on secondary stock to upgrade.
Savills believe this could also mean “that prime CBD rents in markets with tight demand and supply conditions could also experience positive rental growth in the medium term”. This higher rent is linked to the search for premium, best-in-class buildings that meet the required ESG credentials.