A recent report by Cushman & Wakefield reveals alarming statistics regarding the future of office buildings in Greater Lisbon. By 2030, it is estimated that 64% of these buildings, equating to approximately 2.86 million square meters of office space, could become obsolete. This trend is attributed to various factors, including climate legislation and changing occupational demands, which are reshaping the real estate landscape in major European cities.
The Rethinking European Offices 2030 Report
The findings come from the “RETHINKING European Offices 2030” report, which analyzes the risk of obsolescence across 16 major European cities. The report indicates that over 170 million m² of office space built before 2004 is at risk of becoming obsolete due to a lack of significant renovations.
Among the cities analyzed, Greater Lisbon shares a similar risk profile with Dublin and Berlin, with 64% of their office stock potentially becoming outdated. In contrast, cities like Milan and London face even higher risks, with around 80% of their office buildings at risk of obsolescence.
Current Market Dynamics
In Greater Lisbon, the Central Business District (CBD) and New Office Zones are under the most pressure, with a significant influx of new projects. Currently, there are 234,400 m² of office space under construction, with an additional 195,000 m² expected to be completed by 2028. This new supply will add to the competitive landscape, making it challenging for older buildings to attract tenants.
As the market evolves, landlords and property owners will need to reassess their strategies to remain competitive. The report emphasizes that Europe is relatively well-positioned to manage these risks, with a lower increase in availability rates compared to other global regions.
