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The beginning of the fourth quarter

Care continues to be the keyword in the Portuguese office market, with 79,300 sq. ft. occupied through October. m in Lisbon and 45,290 sqm. m in Porto. These results reflect a 69% decrease in activity in the capital and an 8% decrease in Porto, in line with the global macroeconomic situation. While the decline in rental volume is having a significant impact, the number of transactions was less reduced compared to last year. However, prices and rents remained stable or even increased slightly, this is a strong signal of market stability and indicates that the decline in activity is more of an opportunistic phenomenon.

According to Sofia Tavares, Head of Office Leasing at JLL, in the context of macroeconomic difficulties, we see a trend of reduced activity in the office market in both Lisbon and Porto, but note that this has had an impact mainly on rental volume, reflected in a significant decrease in leased space, but to a lesser extent on the number of transactions compared to last year.

In October in Lisbon

There were 7,300 sq. sq. m. of space placed in Lisbon in October. m, down 24% from September but up 21% from October 2022. There were a total of 12 deals, of which only three exceeded 1,000 square feet. m, which gave an average transaction area of 609 sq. m. м. The most active area of the month was Corridor West (Zone 6) with 42% of employment, while the enterprise services sector led the demand, covering 34% of absorption. JLL took part in three deals during this period, and was the consultant in the largest transaction of the month - placement of Closer offices on 1,427 sq.m. of space. m in WTC building b1 (zone 6).

Looking at the year end results

To 79,300 sq. m. m occupied in Lisbon through October, 69% lower than the 253,900 sq. ft. m over the same period last year. Annual declines are also evident in both the number of transactions, of which there were 124 in 2023 (-28%), and the average transaction volume of 639 sq. ft.

In PortoAG/h3>

Occupancy volumes were almost flat (+266%) compared to September, with the month closing at 4,680 sqm. m, up 12% from October 2022. A total of nine deals were concluded in October with an average volume of 520 sq. ft. m and one transaction above 1,000 sq. m. m: accommodation for Globalmédia in the Monte dos Burgos building (1,298 sq. m.). м). Geographically, Zone 2 - Baisha's CBD was the most active during the month, concentrating 37% of employment, while the TMT & sector;

Total occupancy in the Port through October is 45,290 sq. ft. m, which is only 8% lower than in the same period last year, while the number of transactions (57) remained unchanged. At the same time, the average transaction volume decreased by 8% and amounts to 795 sq. km. m at the moment. Zone 1 - CBD Boavista proved to be the most popular among demand, taking 34% of total absorption, while the TMT & sector; JLL, having closed 10 deals in the period, has a market share of 23% and has already secured the placement of 10,400 sq. ft. m in the Greater Portland office market in 2023. The consultant is also active in other parts of the northern region, including the city of Braga, where this month they were able to locate Critical Techworks in the Pólo de Negócios de Braga building in an area of 1,956 square meters. m.