However, the average vacancy rate managed to fall slightly over the last year as new supply remained limited, which ensured the resistance of office rents to decline in most markets. In contrast to patchy occupational market, office investment saw expansion with several large deals in core markets.

Slow economic recovery ahead

- Unlike the UK, the Euro area may stay in recession in 2013

- Unemployment rate in the EU-15 remains at historic highs

Occupier markets impacted by economic context

- Office take-up in Western Europe is still on a decreasing trend

- Contraction in immediate supply is only occurring in the German cities

- Office rents are resilient in core occupier markets

Office investment continues to be particularly strong

- German cities outperform whilst London and Paris remain strong

- Investors are still risk averse in Madrid and Milan

- Office prime yields continue to diverge