Our latest office map depicts market conditions continue to shift in tenants’ favour. As of end Q2, 52% of markets were registered as tenant favourable, up from 44% in Q1. This trend is set to continue for the next 12 months, reaching 56% of markets by Q2-2022. Concurrently, landlord-favourable markets are expected to hold just 6% of the vote in a year’s time, highlighting that neutral conditions will continue to hold sway in a large number of markets. This reflects the limited impact on prime headline rents, propped up by rising incentives against a backdrop of low availability, particularly for the best-in-class stock. Low availability has resulted in prime rental growth in some 10% of markets in the last quarter, including St Petersburg (+3%), Helsinki (+3%) and Paris – CBD (+2%). That said, 16% of markets expect further downward pressure on prime rents in the next 12 months. More details can be found using the downloadable map below.
