European office take-up jumps 8% - Savills

Savills' latest research reveals an 8% year-on-year increase in European office space take-up during the first half of 2025. 

Mike Barnes

The professional and business services sector led this growth, accounting for 26% of total take-up, up from 24% in H1 2024. Savills attributes this to the sector's resilience, particularly among counter-cyclical businesses like law and accounting firms.
Several European markets saw significant growth in activity from this sector. Frankfurt experienced a notable surge, with the sector's share rising from 21% to 32%, driven by KPMG's large lease. Amsterdam led proportionally, with the sector representing 47% of total take-up, boosted by a large commitment from UWV at Bright Offices. In Paris CBD, professional services leasing also exceeded historical averages, capturing 25% of leasing activity, more than double its five-year average of 12%, highlighting renewed confidence in prime urban locations.
Banking, insurance, and finance were the second most active sector, contributing 20% of total European office take-up, a slight decrease from 22% in H1 2024. However, the sector remains significantly above its 2020 benchmark of 16%, indicating continued momentum supported by corporate office attendance mandates.
Mike Barnes, director in Savills European commercial research team, stated: “Prime vacancy rates across the core European office markets are around the 3% mark. Average European prime office rents rose by 6.1% year-on-year during Q2 2025, and development pipelines remain tight, as we approach a 10-year low for new office deliveries. For smaller lot sizes in non-prime buildings, landlords are fitting out to a Cat B standard in order to improve lettability.” 
Christina Sigliano, EMEA head of Global Occupier Services at Savills, commented: “Clearly location has become more important as occupiers shift to more central areas with better connectivity. Similarly, occupiers seek better quality office stock in these locations to reduce their carbon emissions and to attract and retain employees. Occupiers are less willing to sacrifice either of these two factors than they were previously, with more companies competing for less prime space.”