Landlords’ market because of lack of supply
We have been visiting our clients and network in Milan and the surrounding areas.
Unlike the UK, Milan is seeing an influx of workers heading back to the city centre offices following the covid years.
There has been a shift in demand for more modern offices in recent years with the completion of the mixed use Garibaldi development. It has forced landlords to re-think their offering and the market has seen much refurbishment to attract tenants.
Generally occupancy rates are high and it is a landlords’ market because of the lack of supply.
Looking further afield, the industrial and logistics sectors have remained steady. There has not been the surge in demand the UK has experienced in the past three years however there has been an increase in demand for new stock with activity mainly focused in the north of Milan.
The industrial sector has seen demand for data centres, again these are primarily found in the north west of the city.
Over the past two years rents have doubled due to demand and a long lead time for infrastructure.
Published: 13th March 2023