Milan Office Market Dynamics, Q2 2024
Summary and analysis of Milan's current office real estate market conditions.
- Francesca Fantuzzi
- Stefania Campagna
- Alberico Radice Fossati
In H1 2024, over 170,000 sq. m. of office leases were signed in Milan, remaining stable compared to the same period in 2023. H1 also saw an additional 10,000 sq. m. of subleases.
Over 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 3%.
In terms of investor interest, Milan remains the core market for offices. The presence of private capital which was strong in 2023, has been balanced during H1 2024. Investments were driven by assets in central locations and focused on core products and, interestingly, on value-added operations for assets to be refurbished.
