Europe dominates again
Take-up in Q1 2013 was 100,700 sq.m., up 84% y-o-y, 57% of which being generated by European institutions. Only 37% of the take-up was generated by Corporates, local administrations being virtually absent from the market so far.
Office space optimization is spreading over to the administrations. Flex-desk solutions and reduction of surface per employee reach Federal Public Services, Regional Administrations and potentially European institutions, for more efficiency and lower occupancy costs.
Vacancy rate increased slightly to 10.7% vs. 10.4% 3 months ago. Availability in the CBD increased to 6.4% vs. 6.2% while Outside the CBD it increased by 60 bps to 18.2%. Only 22% of vacant stock is new, the limited speculative pipeline suggests that new space vacant will shrink further.
Prime rents remained at €285 / sq.m. / year, top quartile rent for Brussels was unchanged QoQ at €219/ sq.m. /y and weighted average face rent increased by 1% to €175/ sq.m./y.
More office investment deals
Office investment volume this year to date (26/04/2013) confi rmed the recovery started end of last year with a 57% increase to € 344 Mio. Total volume including Retail and Industrial increased by 28% to € 528 Mio. Prime offi ce yields were unchanged at 6%.