JLL – EMEA Flex Report Q3 2019

The 2019 JLL EMEA Research and Strategy deck examined the scale, growth and geographic distribution of flexible office space in Europe during the third quarter of 2019. It estimated that operators leased approximately 410,000 sq m during the quarter and reported that flexible-space transactions represented 13% of total European office take-up across the first three quarters. The deck placed European activity within a global market that had expanded at an average annual rate of 30% from 2015 to 2018, compared with 3.8% annual growth in overall office take-up from 2013 to 2018. It charted accelerating European supply after 2014, with total flexible office stock expected to reach about 5.6 million sq m by the end of 2019 and confirmed openings implying 29% annual growth. City comparisons showed that London held the largest stock and the highest penetration rate, at 6.9% of total office inventory. The report also recorded substantial take-up shares in Central London and Paris, alongside transaction data for Berlin and Spain. Its 2019–2023 outlook anticipated continued expansion but considered sustained annual growth above 30% unlikely because of reduced WeWork expansion, low vacancy in some markets and slower growth in mature cities.

Key findings

• European flex-space take-up was approximately 410,000 sq m in Q3 2019 and represented 13% of total office take-up during Q1–Q3 2019.
• European flexible office stock was expected to reach about 5.6 million sq m by the end of 2019, representing 2.1% of total office stock.
• London had Europe’s highest flex-space penetration at 6.9% of total office stock, with approximately 1.53 million sq m in Central London.

Published by JLL, 2019