Positive beginning of 2016 for Office Real Estate Market, with a general increase of rents, a progressive recovery of sector, which is already started in previous years, and gently variations for yields, which reach 7% in suburbs of Turin and Milan; this is the portrait drawn by new “Report Office Market 2016/1”, realized by Research Department of World Capital.
“Encouraging signs, that emerge from first six months of 2016, – claims Neda Aghabegloo, Responsible Research Department of World Capital – with a general increase of rents in all office prime cities, except Eur districts of Rome (290€/sqm/annual) and the area of center of Florence (250€/sqm/annual) and Bologna (200€/sqm/annual).
The portrait of yields is dynamic, with an increase of values, especially in suburbs of Bologna (8,2%), Padova (8,5%), Turin and Milan (7%), with slight contractions in the city of Florence (5,2% in Centre and 7% in Suburbs) and in urban suburbs of Rome (from 7,6% to 7,5%).
Increase also for most requested cuts, – continues Neda Aghabegloo – especially in cities of Turin and Milan, where in this area it’s recorded the most requested lengths of 5.000 sqm in New Business District of Porta Garibaldi, main zone of all office prime locations, following by suburbs of Milan and Eur area and Suburbs of Rome, with spaces from 4.000 sqm.
Finally, vacancy is stable, – concludes Neda Aghabegloo – except in Milan, where compare to previous range from 6 to 11, we reach 10-14, whereas vacancy reduces in the center of Florence (from 9 to 8 months) and in Center Area B and in Urban suburbs (from 8 to 7 months) of Rome.”
