Location, location, location, confirms JLL

RESEARCH from property consultancy Jones Lang LaSalle has confirmed that location remains the dominant driver on office real estate decisions.

But its Offices 2020 research findings suggest that quality of real estate is growing in importance, as is access to talent.

The firm found European prime rents in core locations are on average 40-70% higher than secondary rents and also found that paying less rent in a non-central location could be a false economy.

Whilst central business district developments record considerably higher rents in 75% of markets, the savings gained in less central locations might represent false value as a company’s recruitment, retention, branding and strategy risks being adversely affected.

Bill Page, head of EMEA offices research at the firm, said: “Corporate occupiers are looking to maximise space utilisation and fit-out to improve efficiencies. But an increasingly strategic approach to recruitment, retention, brand and client access means location is growing in importance.

“The battle for the right space in the right place will rage on.”

Jon Carmalt from the Birmingham office of Jones Lang LaSalle, added: “Office buildings in central areas command higher liquidity, greater income stability and stronger rental growth potential. Peripheral areas can work, especially if there is suitable financial discount on offer but only if transport links and building quality can fill the gap.”