Of­fice space rental was up 29 pct in 2016

Kathimerini English - - Focus - NIKOS ROUSSANOGLOU

New leases for of­fice space in Athens posted a 29 per­cent in­crease last year com­pared to 2015, as en­ter­prises tried to make the most of the con­sid­er­able drop in rents over the last few years.

Ac­cord­ing to a re­port by BNP Paribas Real Es­tate, rep­re­sented in Greece by Danos & As­so­ci­ates, a to­tal of 67,000 square me­ters in of­fice space was rented in 2016, up from 52,000 sq.m. in 2015, as de­mand strength­ened sig­nif­i­cantly.

An­a­lysts at­tribute that de­vel­op­ment not only to the at­trac­tive rental rates but also to the short­age of modern of­fice build­ings, given the complete ab­sence of any in­vest­ment plans in the of­fice prop­erty mar­ket in re­cent years. In view of the short­age of qual­ity space, a num­ber of en­ter­prises have leased of­fices, in some cases ear­lier than ac­tu­ally re­quired, rather than buy­ing, as the eco­nomic un­cer­tainty has been pro­longed due to the gov­ern­ment’s on­go­ing ne­go­ti­a­tions with the coun­try’s cred­i­tors.

This was also re­flected in the re­duc­tion in the stock of empty of­fice space, whose in­dex dropped from 12 per­cent in 2015 to 10 per­cent last year, while in­vest­ment in of­fice spa­ces fell 25 per­cent year-on-year.

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