A significant increase is recorded in new lease agreements office spacesas demand remains high, resulting in each new building which is created to be absorbed directly by the market. During the second quarter of the year, 26 new lease agreements were signed, for a total of 51,000 sq.m. offices. According to her data CW Propriusservice company real estatethis size represents an increase of 50% compared to the corresponding period of 2022, while compared to this year’s first quarter, the increase reached 25%.
The public sector, financial and technology companies played an important role in this increase. The largest agreement in terms of size and value was certainly the one between Premium Properties and to AADE for the lease of the building of the former Athens Heart shopping center, 26,500 sq.m. The building located at the junction of Piraeus and Hamosterna streets is being converted into a green office building, LEED Gold certified, which is expected to be ready in June 2024. Premia Properties’ investment is in the order of 30 million euros.
Of the 26 lease deals between April and June, 80% are for high-end buildings.
The center of Athens emerged as the area with the greatest mobility, while the northern suburbs and especially the axis of L. Kifisias followed in demand. In particular, 21,000 sq.m. were leased in the center. offices and around the axis of Kifissia Street an additional 19,000 sq.m., with the rent amounting to 26 euros/sq.m. on average. According to Proprius, rents for modern high-energy-efficient office spaces can even reach 28-30 euros/sq.m., having increased by 10% year-on-year. The volume of new investment for the development of new office buildings is now significant, in order to increase the supply of modern buildings, where there is a very large deficit in relation to the existing supply and the demand that exists. According to Proprius data, 80% of rental agreements are for high-end buildings that typically offer quality facilities and high energy efficiency. By the end of the year, Proprius predicts that only 15,000 sq.m. will be delivered. of new or upgraded buildings, mainly through the operation of the Tower of Piraeus. By the end of 2024 it is estimated that an additional 124,000 sq.m. will be added, while by the end of 2026 it is predicted that an additional 211,000 sq.m. will have been developed, i.e. approximately 350,000 sq.m. in total.
To these are expected to be added the office buildings in the Ellinikos investment, which are in the planning stage, as Lamda Development has drawn up a new strategy for placing them on the market, through the creation of a special purpose vehicle (SPV), in which join 150,000 sq.m. office spaces. Afterwards, 70% of this company will be put up for sale, with Lamda keeping the remaining 30%. The relevant tender process is expected to be completed by Easter 2024.
