European office space market 'starting to stabilise'

Signs of stability are beginning to emerge in the European commercial property market, it has been suggested.

According to Joe Simpson, spokesperson for real estate firm Knight Frank, improvements are beginning to take place, something that may be welcomed by companies looking to expand overseas as part of efforts to increase their market entry.

"There has certainly been some stabilisation," Mr Simpson remarked, noting that this is especially true in very prime sectors of the European market.

"If you take prime markets, [such as] the likes of central London and Paris there may even have been a slight tightening of yields for certain products in the last few months," he explained.

Mr Simpson went on to say that the weakness of sterling has made the UK an attractive location for those seeking commercial property, meaning a growing number of US and European-based firms may be opting to set up offices in London.

His comments come following the release of a report by LaSalle Investment Management earlier this month.

It suggested that occupational demand for commercial property real estate is still relatively weak, meaning there could be greater opportunities available for international firms looking to expand while prices are low.

Written by Julian Poulter and Copyright "Selling People 2009"