A shortage of prime office space is developing in the Lisbon region. Of the 509,000 m2 available for occupation, the market has just over 25,000 sqm of new and used stock, 40 percent is concentrated in zone 6 (Axis A5 to Porto Salvo and Alfragide) and 20 percent in zone 2 (Axis Av. da República, Av. Duque de Loulé and Amoreiras area). The data comes from the 6th edition of Prime Watch, prepared by B. Prime. The study concludes that buildings with strong locations are being occupied more quickly and that during 2016, new record lows will be achieved in vacancy rates. The office market in Lisbon has an average value of almost €6.5 billion.
According to Jorge Bota, Managing Partner of B. Prime, “Investors have basically invested in the residential and hotel market, but with the economic recovery, companies have been expanding, in addition to the entry of new international companies in the market. As there is virtually no new supply in the office segment, we have reached this unusual situation where there is no quality supply for the current demand.”
