A Cushman & Wakefield Research Publication - 2017 Global Forecast

completions have been gradually increasing year by year since 2013 and are set to move above the 10-year average in 2017 and 2018. This is likely to reduce the rental growth potential for Europe as a whole over the next few years, but there will still be variation by location. Broadly speaking, office-based employment growth across the Eurozone and the UK should support office occupier demand over the next two years, but it is not expected to match development completions in the aggregate. As the unemployment rate declines, the ability of markets to add jobs at the same rate also decreases; that will impact net absorption. However, there will be differences in performance with Macron’s France expecting employment growth to pick up in 2017-18, while near full employment will slow job creation and net absorption in Germany and the UK.

EUROPE OFFICE-USING JOB GROWTH

1,000 1,200

0 200 400 600 800

Office employment growth is set to slow from 2.5% pa over 2014-16 to 1.5% pa over 2017-19.

000’s

2014 2015 2016 2017 2018 2019

Source: Oxford Economics

cushmanwakefield.com / 27