
Spotlight: European Office Leasing – Q4 2025
"European office demand held steady in 2025, with vacancies at 9% and incentives tightening, and take-up forecast to grow 3% in 2026."
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"European office demand held steady in 2025, with vacancies at 9% and incentives tightening, and take-up forecast to grow 3% in 2026."

"European office investment set for 2026 rebound"

"European real estate investment volumes are on track to reach c.€77 billion in Q4 2025, a 12% year-on-year increase. This would bring the full-year total to c.€215 billion, 9% higher than volumes recorded last year"

"European take-up Q1-Q3 2025 rose by 3% year on year, lifting average prime office rents by 4.9%"

"AI is expected to increase job displacement in the short to medium term, and support office-based employment over the longer term, as skills required will be more focussed on utilising existing AI tools, freeing up more time to be allocated to interactive, people-focussed and creative roles"

"Appetite for larger lot sizes gradually increases"

"European office Q2 take-up rises 10% year on year"

"Average prime European office yields compress by 5 bps during Q2 2025, driven by core Western European markets"
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"Since 2020, European office tenants have increasingly opted to relocate to Central Business District (CBD) locations, which is driving outperformance of prime rental growth in central locations. "

"UK property yields remained steady at 5.91% in May, reflecting market resilience. With rate cuts and strong fundamentals in place, optimism is growing"