Spain reached a record high (since 1990) of 13.1% office availability in Q2 2012 from the previous quarter’s 12.9%, and is now way above its long-term average of 7.3%. In contrast, the UK and France are demonstrating some stability at an identical figure of 7.1%. London City and London West End availability rates are at 6.9% and 5.1% respectively. Germany’s availability, however, whilst higher than either France or the UK, continues on a downward trend, reaching 9.1%, equal to its long-term average.
Deteriorating consumer fundamentals continue to take their toll on the retail sector, although while European prime rental value growth in both Q4 2011, and Q1 2012 was just 0.2%, it was surprisingly higher in Q2 2012 at 1.5%. With the majority of countries recording nil change over the quarter, it was only two counties’ strong positives that generated the European growth: France at 5.7% and the UK at 2.6%. The only other change was in Ireland where, after nil changes for three quarters, prime rental values fell by 16.7% in Q2. France was home to two contrasting movements: a fall of 12.9% in Lyon, and a rise of 12.2% in central Paris.
Source : AXA Real Estate