70% of the Offices Under Construction on Lisbon Are Already Allocated

22 March 2019 – Richard D. K. Turner

Nearly 70% of the offices that developers will introduce to Lisbon’s office real estate market have already been allocated, according to a new report by JLL, as cited in an article yesterday on the Idealista news and real estate website. Approximately 78,000 square meters of total office space is expected to come on the market this year. Of that, 46,000 m2 have already been leased, leaving just 32,000 m2 of office space for placement in an already tight market.

JLL noted in its Office Flashpoint report that supply constraints have led to a lessening in the take-up rate for offices in the region, as the total in the first two months of the year fell by 34% to 14,502 m2, compared to 2018. In the first two months of the year, there were 21 office leasing operations, with an average area of ​​691 m2. JLL was responsible for 27% of the 14,502 m2 of office space allocated.

Mariana Rosa, the director fo JLL’s Office/Logistics Agency stated that “there is no doubt that very strong latent demand still exists and that developers are beginning to respond with new investments.” The lag between the beginning of construction on new developments and their completion naturally leads to high levels of pre-allocation in a market subject to conditions associated with a lack of supply.

Original Story: Idealista