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EMEA City Offices | Q2 2020

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In this quarter’s EMEA City Offices Q2 review, we highlight the following key areas:

  • ECONOMY: European economic growth had already begun to cool at the start of 2020, before the impact of the COVID-19 pandemic took hold in March. Fast forward to the end of H1 and the virus’ impact is clearly visible in the GDP figures across Europe.
  • EMPLOYMENT: Like GDP, employment growth had been slowing by the end of 2019, with many economies reaching full employment. The immediate impact of COVID-19 has pushed out unemployment rates close to levels seen in 2008 and the 1930s, primarily due to the contraction of the retail and hospitality industries. Major European cities have been hit hard, especially those dependant on tourism and those driven by centralised, high-density office populations reliant on public transport.
  • TAKE-UP & PRE-LEASING: The 12-month rolling take-up figure for H1 2020 is expectedly down, but only by -17.2%. Many occupier expansion plans have been put on hold in the immediate aftermath of COVID-19, but large individual deals have buoyed overall take-up in some markets.
  • VACANCY: The average vacancy rate across EMEA moved up only slightly to 5.8% by the end of Q2 2020, from 5.5% in Q4 2019. This reflects how tightly balanced office markets remain, in-line with our April prediction of limited movement in vacancy by up to 200bps maximum as of year-end 2020.
  • RENTAL GROWTH: By H1 2020, our EMEA office rental index grew by a surprising 1.5% Y/Y, but most of this increase was recorded by end Q1, before the full impact of COVID-19 took hold.

This report also includes a macroeconomic overview, market supply and demand, rents and occupier conditions, country markets updates before finishing with our forecast. 


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EMEA City Offices | Q2 2020

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Related Experts
United Kingdom

Andrew Hallissey

Executive Managing Director – Occupier Services, EMEA

London - West End

Well respected within the industry, Andrew is an Executive Managing Director with over 20 years of global experience within Corporate Real Estate. Andrew has a wealth of knowledge having advised dozens of Fortune 500 companies throughout the world on developing real estate transformation solutions.

As Executive Managing Director of EMEA Occupier Services.  Andrew drives strategy, client service delivery and spearheads the growth of Colliers’ occupier business within the EMEA region.

Andrew leads integrated service delivery for all occupier clients specialising in corporate real estate services, portfolio strategy, transaction management, brokerage, lease administration, project management, workplace services, and facilities management outsourcing advisory across the EMEA region.

Prior to joining Colliers, Andrew worked for CBRE where he has held senior leadership roles within their Global Workplace Solutions business in Chicago, Hong Kong, New York and London.  He has gained extensive global experience advising large corporations on their global real estate organization and strategy over the last 18 years, having worked across EMEA, North America and Asia Pacific.  Andrew also currently serves on the global board of directors of Corenet, the leading global association for the corporate real estate profession.

He has lived and worked internationally and has a deep understanding of the cultural and regional challenges within a global organisation.
 

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Peter Leyburn

Head of Enterprise Clients

EMEA Headquarters

Peter is Head of Enterprise Clients, Occupier Services EMEA. He is focussed on ensuring Colliers' Occupier Services enterprise clients are receiving best-in-class solutions to manage their organisations and portfolios.

He is responsible for ensuring service excellence including account growth, setting direction on account strategy & innovation. He leads the programme to hire, grow and develop our Account and Transaction Managers.

In addition, Peter is also responsible for leading Colliers EMEA Cross Border Tenant Representation, coordinating the in-country Tenant Rep teams to deliver multi-market solutions to our occupier clients.

Peter is a senior member of Colliers Global Tenant Advisory Council and maintains close working relationships with key Colliers occupier focused teams across all global regions in order to seamlessly connect clients, advisers and brokers.

 

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Damian Harrington

Head of Research

London - West End

Damian Harrington is a Director and Head of Research for both Global Capital Markets and EMEA at Colliers. He has over 20 years of experience in the real estate industry living and working from various locations across EMEA including London, Dubai, Prague, Helsinki and Amsterdam. Damian is responsible for producing research for internal and external clients. His expertise helps to provide clients with global capital market trends and analysis, and connects them with strategic and actionable insights, such as the changing nature of global capital and the impact on global capital flows. Damian has produced numerous research papers and generated analysis of markets across all asset types - from residential to offices, retail to logistics and hotels to niche sectors such as life sciences, air cargo and data centres. Damian is a member of the EMEA location strategy team and a key member of Colliers ESG focus group.  He speaks regularly at internal global conferences, external industry events hosted by GRI, ULI and other key industry bodies, plus key annual events such as MIPIM and EXPO REAL.

Damian holds a Masters degree in European Property Development and Planning from University College London, a BPI Bachelor of Planning from the University of Amsterdam and a BA (Hons) in Town and Country Planning from Manchester University. He is also a qualified surveyor, holding an MRICS with the Royal Institute of Chartered Surveyors.

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