JLL’s new EMEA Information Centre report exhibits sturdy information centre demand shifting focus to new markets. In 2024, there might be a 16% improve in information centre provide with 467MW added to Europe’s core markets of Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD). Secondary markets can even see important progress in 2024, with Madrid, Berlin and Warsaw set to see a median 49% improve to their market measurement. Madrid alone is anticipated to have 58MW of latest provide added.
In line with JLL’s Information Centre report, 2023 was an distinctive 12 months, with document take up for information centres throughout the FLAPD markets, which reached 352MW, a 19% YoY improve. A complete of 391MW of latest provide got here on-line, with 161MW added within the final quarter alone – the most important yearly improve seen with the core market measurement rising by 16 %. Frankfurt dominated 2023 each by market progress and take up, which noticed 119MW of take up (20% up YoY) and 134MW of latest provide (51% up YoY). This can proceed to be the case in 2024, nonetheless we are going to see London make a comeback after a 12 months of comparatively low market progress.
Pre-leasing exercise additionally remained excessive, with a complete of 511MW of pre-lets in 2023, a 6% YoY improve. Falling emptiness charges led to common colocation rents rising between 9% and 13%. Funding within the sector greater than doubled in 2023, reaching $2.34bn in Europe up from $0.76bn in 2022.
Tom Glover, Head of Information Centre Transactions, EMEA, JLL, stated: “In a world more and more fuelled by the web, information, and synthetic intelligence, demand will proceed to rise for the actual property to make all of it occur. We noticed document ranges of take up, demand and preleasing for information centres in 2023, and anticipate 2024 to be one other staggering 12 months for exercise within the sector.
Information centre demand exhibits no signal of deceleration. Energy availability and more and more powerful sustainability efficiency rules and reporting necessities are starting to drive exercise in Europe’s secondary markets.”
Secondary and rising markets achieve floor
Berlin, Madrid, and Warsaw are forecast to develop by 39%, 54% and 59% respectively. In 2023 alone, 23MW of latest provide was added in Madrid, a 27% improve in market measurement. Tertiary or rising markets are additionally anticipated to develop by a median of 17%. In Southern Europe and the Nordics, markets are set to develop between 30-55% over the 12 months forward.
Daniel Thorpe, Information Centre Analysis Lead, EMEA, JLL, added: “Whereas we noticed further provide come to market, it’s nonetheless struggling to maintain tempo with the staggering ranges of demand for information centre capability, creating an ongoing imbalance. We anticipate demand for house in 2024 will proceed to be extremely excessive, significantly in core markets, resulting in low emptiness charges for brand spanking new house and upward stress on rents.
We predict that information centre developments will develop to areas the place there’s out there energy and land, which means secondary and rising markets, significantly in Southern Europe and the Nordics, might be essential in countering provide challenges.”
