1、2 O 3 ORISKS AND OPPORTUNITIES FROMOBSOLESCENCEEUROPEANOFFICESContents1EXECUTIVE SUMMARYP.64FOCUS ON BEST-IN-CLASS CBD OFFICESP.122OFFICE VACANCY LOWER ACROSS EUROPEP.85NON-CENTRAL LOCATIONS MOST AT RISKP.187CONCLUSIONSP.293WESTERN EUROPE FACES BIGGEST CHALLENGEP.106LOWER OFFICE VALUES RELATIVE TOOT

2、HER USES DRIVES REPURPOSING OFASSETSP.22KEY TAKEAWAYSP.4RETHINKING EUROPEAN OFFICES 20302CUSHMAN&WAKEFIELD3MARKET%OFFICE STOCK AT RISK OFOBSOLESCENCEMILAN86%BARCELONA81%STOCKHOLM81%PARIS80%MADRID77%AMSTERDAM77%LONDON76%BRUSSELS70%FRANKFURT70%BERLIN65%LISBON64%DUBLIN64%MUNICH60%PRAGUE47%BUDAPEST43%WA

3、RSAW40%Source:Cushman&Wakefield Research Key TakeawaysWe see an acceleration in the risks of offices becoming obsolete.By 2030 we estimate over 170 million sqm of office stock is at risk of becoming obsolete in sixteen European cities.This is equivalent to more than six times the total office stock

4、in Central London.Western European markets face agreater challenge with nearly 80%ofstock at risk in seven leading cities,reflecting arelatively older stock profile.Repositioning of assets is likely to be the optimal solution in CBD locations with strong demand for best-in-class space and premium re

5、nts being achieved.Higher vacancy in non-central locations is driving a widening discount in values.Here repurposing of assets is likely to be the best option with more favourable alternative use values.The value differential between offices and other uses has narrowed since 2019 providing a greater

6、 incentive to consider alternative use types.Clear strategic analysis is required atan asset level to determine the optimal solution.RETHINKING EUROPEAN OFFICES 20304CUSHMAN&WAKEFIELD5Executive SummaryLAST YEAR WE RELEASED A REPORT OBSOLESCENCE EQUALS OPPORTUNITY 1 WHICH HIGHLIGHTED THE RISKS FACING