High class, but less available

The tenant leasing activity in Europe’s largest cities in the third quarter of 2022 totalled 2.97 mln sqm, representing a 7 pct increase on the previous year. For the twelve months up to the end of Q3 2022, tenants leased 12.7 mln sqm, which, when compared with the 9.86 mln sqm leased from Q4 2020 to Q3 2021 inclusive, is an increase of 29 pct. Over the last twelve months, a number of cities – including Brussels, London, Madrid, Munich, Paris and Warsaw – have seen growths in tenant leasing activity of over 50 pct on the previous twelve-month period. Offices become highly sought The transaction volume of 12.7 mln sqm illustrates the scale of the recovery of the office space market in Europe since the lifting of the pandemic restrictions. At the same time, it is a far higher figure than the 15-year average of 10.4 mln sqm and not far behind the volumes recorded for the last pre-pandemic calendar year of 2019, when tenants signed contracts for 13.2 mln sqm. “