Flexible Office for the Evolving Workforce

Flight to Quality is Global European ‘Grade A’ and ‘non - Grade A’ availability

Bifurcation in the Office Market

12.0

40%

• Flight to quality is a global office trend that has also impacted European markets. • European Grade A availability ratio has remained stable at 2.6% quarter-on quarter. However, the availability ratio for non-Grade A climbed to 5.5% in Q3 2022 from 5.2% in the previous quarter. • The proportion of Grade A space as a percentage of available European office space has shrunk from 35% to 32% over the last two quarters. • These levels are high by historic standards, however, flight to quality and slowing construction should continue to exert downward pressure on Grade A availability.

10.0

sqm (mil)

35%

8.0

6.0

30%

4.0

25%

2.0

0.0

20%

Q2 2011

Q4 2011

Q2 2012

Q4 2012 Q2 2013 Grade A Avail Q4 2013

Q2 2014

Q4 2014

Q2 2015

Q4 2015

Q2 2016

Q4 2016

Q2 2017

Q4 2017

Q2 2018

Q4 2018

Q2 2019

Q4 2019 A as % (RHS) Q2 2020

Q4 2020

Q2 2021

Q4 2021

Q2 2022

Q4 2022

Non Grade A Avail

Source: Cushman & Wakefield Research