Office take-up in 2023 dampened by a challenging environment and changing working patterns
The slowdown in rental activity seen from late 2022 in some European markets then spread and was confirmed in 2023. This was due to the uncertain economic and geopolitical context and structural changes in the way offices are used.
All told, take-up for the year came to 7.6 million sqm across the 17 main European markets*, down 19% vs 2022. This was 16% lower than the long-term average.
According to Thierry Laroue-Pont, CEO of BNP Paribas Real Estate, “2023 will still be looked back upon as a respectable year. After leasing declined due to teleworking and new work patterns, office take-up is now finding a new balance. This has primarily affected large units, while small and medium-sized units have shown more resilience”.
*17 main European markets: Amsterdam, Barcelona, Berlin, Brussels, Dublin, Cologne, Düsseldorf, Frankfurt, Hamburg, Central London, Luxembourg, Madrid, Milan, Munich, Central Paris, Rome, Warsaw.
Mixed performances across Europe
The weaker leasing trend is largely due to fewer deals for units over 10,000 sqm. The six main German markets (Berlin, Cologne, Frankfurt, Düsseldorf, Hamburg and Munich) reported a 26% fall, directly hit by the slowdown in the German economy, while Central London ended the year down 23% and Central Paris down 20%.
Conversely, Southern Europe has been boosted economically by tourism and is enjoying take-up above long-term averages. This is the case for Madrid and Milan which, despite a moderate fall in take-up year-on-year (-1% and -11% respectively), outperformed their ten-year averages by 5% and 20%.
Want to know more?
For more information and statistics about the office market in 2023, download the press release.
