Take-up
Office letting activity has sufficient momentum in demand that should persist into H2. Nonetheless, the market remains characterized by a limited volume of large-scale transactions that reflect the difficulties created by reduced office development.
Letting in the 18 main European office markets amounted to 3.99 million sqm over H1 2025 (+6% y.o.y). This result is close to the 5-year average. Market momentum currently exists in cities, though many tenants may eventually end up postponing real estate decisions if economic uncertainty caused by global trade disputes persists.
Rents
The gap between prime and average rents is expanding reflecting the dichotomy of office markets.
Prime rental values are still driven by high demand for top space.
Average rents are growing at a slower pace as demand for secondary locations is weaker and requires higher incentives. However, this trend could diminish due to the reduction in the number of players willing to pay so much.
Vacancy
Low availability prevails in central submarkets, particularly for new buildings that provide high quality accommodation.
Much higher vacancy rates are found in peripheral office districts and for second-hand space.
