The office market closed 2020 with take-up of 294,500 sqm in Milan and 120,000 sqm in Rome. A downward trend compared to the same period of the prior year, due to the contingent situation linked to the Covid-19 health emergency.
The second quarter suffered the effects of the lockdown period and, although the market resumed activity from May-June, the take-up of office space in the months from July to September was below quarterly averages.
Positive signs were observed in Q4 2020 in both the Milanese and Roman markets, with a sharp increase in office space compared to the two prior quarters.
In terms of area let, the most active markets in Milan were the Periphery, accounting for 39% of the total area, mainly thanks to a pre-let transaction of approximately 41,000 sqm during the first quarter, followed by the Hinterland with 19%. In the last quarter, a transaction of approximately 19,000 sqm was recorded in the south-east periphery, within the municipality of Milan.
Prime rents in the CBD are stable at approximately 600 €/sqm/year compared to the prior quarter and up compared to the same period in 2019.
Moving on to the Capital, the periphery is the preferred macro-zone, accounting for 34% of total take-up. Rents are stable compared to the prior quarter, with prime rent in the more central zones of the city at 440 €/sqm/year.