• Under pressure’ markets: comprising parts of southern Europe and the Eastern fringe of the continent (Rents fell substantially in Moscow and St Petersburg, Russia and Kiev, Ukraine throughout 2014). Uncertainty and economic weakness have resulted in increasing vacancies, likely carry over to 2015.
  • ‘CBD-led’ recovering markets: including key office locations in Spain, Ireland and Netherlands, which are benefitting from the economic upturn and improved sentiment.
  • ‘Stable’ markets: The German Big Six, Paris, parts of Scandinavia and CEE. In Germany, prime rents increased throughout 2014 and are now at their cyclical peak. Despite the more worrying state of the French economy, prime CBD office rents in Paris were unchanged in H2, but downside pressure remains in place across the rest of the market. In most cases, including Paris and Germany, prime rents are forecast to remain stable through at least the first part of 2015.
  • ‘Ahead of the curve’ markets: Dominated by the UK, there are signs of rental growth becoming increasingly broad-based and filtering through to the regions. Prime rents increased in London West End (+2.1%), London City (+8.3%), Manchester (+1.6%), Birmingham (+1.8%) and Bristol (+1.8%) during the second half of 2014. Forecasts point to CBD rents increasing further in a majority of centres in the next 12 months as business confidence continues to improve.