Milan Office Market Dynamics, Q3 2024
Summary and analysis of Milan's current office real estate market conditions.
- Francesca Fantuzzi
- Stefania Campagna
- Alberico Radice Fossati
In Q1-Q3 2024, almost 260,000 sq.m. of office space was absorbed in Milan, almost 90,000 sq.m. of which was in Q3, slightly lower than in the same period of 2023. The first nine months of 2024 also saw an additional 11,300 sq.m. of subleases.
Almost 50% of take-up was in the Centre and CBD areas, confirming central locations as a main driver for occupiers. Grade A assets represented around 60% of take up confirming the focus on high quality assets. The Grade A vacancy rate is at 2.8%.
Milan remains the primary office investment market. Investors favored single assets in central locations, focusing on core products. Notably, there's renewed interest in value-add properties, both for office use and potential conversions. Private investors were particularly active, accounting for over 10% of Q3's transaction volume.
