Absorption of office space in Lisbon up 36,800 sq.m in the 1st half of the year
With the first half of the year just around the corner, this is a good time to take stock with a little more certainty and foresight about the trend for 2023.
In the 2nd quarter of 2023, 16,900 square metres of office space were transacted on the occupational market in Greater Lisbon, spread over 29 operations, according to Worx Real Estate Consultants. The average deal fell to 580 sq.m, compared to 1,730 sq.m in the same period in 2022. This volume is in addition to that recorded in the 1st quarter, making for a total take-up of 36,800 sq.m in the 1st half, 78% below 2022. This drop mainly reflects the lack of pre-lets signed so far – a situation that differs substantially from last year, when 102,500 sq.m of pre-lets were signed in the first 6 months.
Even if we try to make a ceteris paribus comparison, that is, discounting the pre-lettings that took place in the same period last year, demand is 44% lower in the first half of the year. Parque das Nações was the most sought-after area, with a 23 per cent share, influenced by the largest occupancy of 2023 so far – a company from the Utilities sector that occupied 4,600 sq.m at Exeo Office Campus – Lumnia. This was followed by the Western Corridor, boosted by several small transactions with an average of 315 sq.m, and the CBD, where a Financial Services occupation at Miguel Bombarda 4 with 770 sq.m stands out. These areas accounted for 19% and 15% of total take-up, respectively. The TMT & Utilities sector once again proved to be one of those with the greatest demand, accounting for 32 per cent of the area let. This was followed by the Consultants and Lawyers sector and the Other Services sector, which each accounted for 11 per cent of take-up.
Bernardo Zammit e Vasconcelos, Head of Agency at Worx, points out that “Worx has had a 30% share of the take-up volume transacted to date, intervening and mediating 11,000 sq.m. The flow of demand remains stable, with national and international companies looking for new workspaces. It’s the closing of deals that has taken longer, so take-up is unlikely to reach the average of the last five years of 190,000 sq.m. The technology sector is showing the greatest slowdown in decision-making, the impact of which should have an impact on take-up in the coming months, which is also leading us to look for another tenant mix to occupy the spaces being let.”
13 July 2023
