Office rents fall across Europe

May 14, 2003—New research from property agents Jones Lang Lasalle finds that prime office rents have fallen by an average of 8.6% this year. Vacancy rates are the highest in 10 years.

Only two cities—Brussels and Moscow—show any sign of short-term rental growth.

Occupier demand for office space remained weak in Q1 2003, and leasing activity across Europe was 16% below that in the previous quarter, Q4 2002. At the end of March, the average vacancy rate across western Europe reached 7.7%, taking it back to the peak level recorded during the downturn of the early 1990s.

     Reprinted with permission; copyright 2003 i-FM