Solid economic growth supports steady rise in rents

The European economic recovery has been extended into the final quarter of the year, yet inflation remains well below target in most economies. As a result, occupier demand continued in a strong vein, driving office vacancy rates lower, although prime rents only rose in a handful of cities this quarter. Investment activity was perhaps slightly disappointing. But it was still up compared to Q3 2016 and yields for the best assets remain under some downward pressure.