Office & Retail Market Report
Fourth quarter 2018
What to remember from this year 2018:
FOCUS OFFICES 2018-2019
– Vacancy rate of 3.58%, record rate since 2008.
– A take-up of 243,000 m², which exceeds 200,000 m² for the 5th year in a row.
– A stock that now exceeds 4 million m² (a first time) and interesting to see that 25% of the stock is less than 10 years old …
– The average office area is 660 m².
– The biggest catch in occupancy is 31,000 m² by the company DELOITTE in the district of La Cloche d’Or in Luxembourg City.
– The Cloche d’Or district is a hit in the last quarter in terms of occupancy. Is this a TRAM effect? The tram will serve the district of Cloche d’Or in 2022. It is noted that the districts concerned by the passage of the Tram are on the rise.
– Companies profiles: consulting firms, financial services, public authorities.
A year 2019 full of projects largely marketed and which may see the course of 200,000 border crossings.
– Kirchberg: Infinity / Staccato
– CBD: Royal Hamilius / Zenith
– Station: Impulse
– Cloche d’Or: Jewel Building (6.000 m²), Darwin and Kockelscheuer (5.470 and 4.990 m²)
– Airport: Casa Ferrero
– Belval: Naos and Rouden Eck
– Leudelange: Altitude and W4
FOCUS CAPITAL MARKETS 2018-2019
– We pass the milestone of 2 billion euros (25% made by INOWAI). A record year. We must go back in 2007 to have exceeded the threshold of two billion euros.
– 2019 is already confirmed to also reach the two billion investment mark thanks to products already under sales mandate supported by active occupants in development.
– The largest operation is the JBBK (Kirchberg district) with 37,600 m² for a total of 168 million euros (carried out by INOWAI).
– The prime rate of return is 3.75% in the city center. It goes to 6.25% in the periphery.