Despite the significant supply growth in that time frame, demand has grown at a faster rate. Absorption has materially outpaced new supply, in turn driving vacancy rates in Europe’s FLAP-D (Frankfurt, London, Amsterdam, Paris and London) markets down from 10.5%, to 2.3%, the lowest level recorded.ii 

This significant expansion in demand shows no indication of softening, with Q2 2024 absorption continuing to set new records, with 355MW of absorption across FLAP-D markets, 13% higher than the previous record quarter and almost 2.3x the average quarterly absorption level in these markets.iii As a result, absorption throughout the past four quarters has been greater than the previous eight quarters that preceded it.iv This does not however appear to be the peak of the market.

Read the full ‘Thought Leadership’ article at the link below