You are here : HOME > NEWS > Records tumble in Luxembourg - CBRE

Records tumble in Luxembourg - CBRE

The Luxembiurg office of real estate broker CBRE has produced its analysis of the office market in the Grand Duchy during 2018.
It finds that office take-up in the fourth quarter totalled a very active 89,400 m², bringing the annual volume to 250,000 m². This is one of the best years on record and the 5th consecutive year of +200,000 m² take-up. Overall, demand dynamics across the board are positive from healthy take-up and net absorption.

Service companies were the big movers in the final quarter. Deloitte (31,000 m²) and Alter Domus (10,600 m²) both moved into their new facilities in Cloche d’Or, heightening the profile of this growing district. Additionally,
Grant Thornton let 5,915 m² in Green Square. Also coming into the sector are flexible office providers. Welkin & Meraki let all 2,443 m²of a building in the CBD, as the flexible office trend continues in Luxembourg, albeit at a slower pace this year. Overall, services dominated new leases in 2018, accounting for
35% of all activity.

Public entities closed more than 21,000 m² of space in the final quarter for an expansive year. The CSSF continues to demand space beyond their three year old HQ, taking 5,400 m² in the Moonlight building alongside the Ministry of Finance (4,200 m²). The Chambre des Salaires acquired the entire building (4,340 m²) at 2/4 Rue Pierre Hentges.


Approximately 162,000 m² of office space is considered vacant out of a total stock of 4.22 million m². CBRE points out that this is less than a year’s worth of take-up, indicating a shortage of available space. Strong demand and limited new completions has led to a decrease in vacancy to just 3.8% at the end of the year. Major markets are under intense pressure. The CBD, Kirchberg, and Airport markets are recording availability of around 1%. Decentralised markets are absorbing some of this unmet demand. Lux-West has gone from 9.0% vacancy in 2017 to 5.3% today.
Esch-Belval is recording availability of 6.5%, but this is almost entirely concentrated in the Terre Rouges buildings. In Gasperich, around 7.7% of the stock is available. One-third of this (10,200 m²) is to be found in Dyapason.

Taking into account the project pipeline through 2020, vacancy in these districts is expected to stay somewhat elevated. Other large vacancies include the newly completed Green Square (10,585 m²) in Hamm, the Helios Buildings (7,600 m²) in Gasperich, and H2O (7,300 m²) in Howald.
Tim Harrup

News in short
'Infinity' points to future of Kirchberg | 13/12
Senior homes - the figures behind the trend | 10/12
Toison d'Or project has local support | 9/12
Finance Tower heading for Koreans? | 5/12
New life in Cureghem district | 4/12
Art & Build - wooden and healthy at 30 | 3/12
Defence site moving to concrete phase | 28/11
Louise district back in favour | 27/11
Tubize - another political football? | 26/11
Last mile costs - the rental reality | 21/11
Tubize renewal begins | 20/11
H.I.B. extends its scope | 19/11
CCN renewal on the road | 18/11
Souverain 25 officially sold | 15/11
New last mile facility near Ghent | 14/11