lisbon & porto office market report q2 2019 · 5 u adamastor 4,260 liberty seguros financial...

Lisbon & Porto

Office Market Report

Q2 2019

PORTUGAL ECONOMIC

OVERVIEW

1

PORTUGAL ECONOMIC OVERVIEW

3

Q2 2019

0.5% QoQ

1.6% YoY

Q4 2017

Q2 2019

6.5% Unemployment

1.00.6% Inflation

Source: Focus Economics

-1,0%

-0,5%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

GDP Evolution - Growth Rate

Taxa de crescimento Homóloga YoY Taxa de crescimento em cadeia QoQ

-5%

0%

5%

10%

15%

20%

Q1

200

8

Q2

200

8

Q3

200

8

Q4

200

8

Q1

200

9

Q2

200

9

Q3

200

9

Q4

200

9

Q1

201

0

Q2

201

0

Q3

201

0

Q4

201

0

Q1

201

1

Q2

201

1

Q3

201

1

Q4

201

1

Q1

201

2

Q2

201

2

Q3

201

2

Q4

201

2

Q1

201

3

Q2

201

3

Q3

201

3

Q4

201

3

Q1

201

4

Q2

201

4

Q3

201

4

Q4

201

4

Q1

201

5

Q2

201

5

Q3

201

5

Q4

201

5

Q1

201

6

Q2

201

6

Q3

201

6

Q4

201

6

Q1

201

7

Q2

201

7

Q3

201

7

Q4

201

7

Q1

201

8

Q2

201

8

Q3

201

8

Q4

201

8

Q1

201

9

Q2

201

9

Unemployment and inflation rate

Unemployment Rate Inflation Rate

ECONOMIC TRENDS 2019

4

GDP growth forecast

1.8%

Source: Bank of Portugal

Estimated external demand growth

3.4%

Exports estimated growth

4.7%

Employment expected growth

1.2%

Slight acceleration of wages

Strong acceleration of investment

to a 6.6% change

Maintenance of the relatively strong growth

of tourism exports in the coming years.

LISBON OFFICE MARKET

Q2 2019

2

ZONE MAP– LISBON OFFICE MARKET

6

Lisbon office market is divided in 6 big zones, as

following:

Zone 1 – Prime CBD

Zone 2 – CBD

Zone 3 – Emerging Office Zone

Zone 4 – Secondary Office Zone

Zone 5 – Parque das Nações

Zone 6 – Western Corridor

LPI is the Index used to evaluate the Lisbon Office

Market Performance.

It’s a Real Estate Index that monthly shows the sq

m traded and the correspondent lease values (sq.

m./month) .

Prime CBD (Zone 1) and CBD (Zone 2) represent

the Prime Location in the Lisbon Office Market.

LISBON OFFICE MARKET

7

ZONE 1 - PRIME CBD

N.B.: All offices located outside the main zones are included in the so-called zone 7, which corresponds geographically to all the

areas of Lisbon which are not within zones 1 to 6.

Area: From Av. da Liberdade to the Praça Duque de Saldanha.

Description: The leading zone of Lisbon.

Occupiers: The main area for head offices and back offices in the banking and

insurance sector plus offices of the largest law firms.

ZONE 2 - CBD

Area: Av. da República, Av. Duque de Loulé and the Amoreiras area.

Description: Central and established area of Lisbon.

Occupiers: Service companies and state entities

ZONE 3 – EMERGING ZONE OFFICE

Area: From Campo Grande to the 2nd Circular ring road, the areas of Benfica,

Praça de Espanha and Sete Rios.

Description: Close to the main roads into and around Lisbon.

Occupiers: Head offices and back offices for the banking sector.

ZONE 4 – SECONDARY ZONE

Area: From Av. Infante Santo to the Av. 24 de Julho.

Description: Riverside and historic area of Lisbon.

Occupiers: Small businesses in various sectors.

ZONE 5 – PARQUE DAS NAÇÕES

Area: Parque das Nações.

Description: The most recently developed area of Lisbon with excellent transport

and other facilities.

Occupiers: HQs of multi national companies and state services.

ZONE 6 – WESTERN CORRIDOR

Area: Along the A5 motorway, up to Porto Salvo and Alfragide.

Description: A zone on the periphery of Lisbon along the motorway to Cascais.

Supply is generally in office parks.

Occupiers: HQs of multi national and IT companies.

8

Source: Savills Research

LISBON OFFICE MARKET- Q2 2019

68,290 sq.m.

Consultants

and Lawyers

18,841 sq.m.

Relocation

45%

Take-upMost Dynamic

Business Sector

Best Performing

Zone

Prime Zone

21,565 sq.m.

Q1 2019 vs Q2 2019

(% variation)

63%

Reason for Letting

21,565

sq.m.

5,500

sq.m.

14,817

sq.m.

0

sq.m.

Zone 1

Prime CBD

Zone 2

CBD

Zone 3

Emerging

Zone

Zone 4

Secondary

Office Zone

7,002

sq.m.

Zone 5

Parque das

Nações

14,908

sq.m.

Zone 6

Western

Corridor

4,498

sq.m.

Zone 7

Other Zones

3,372 sq.m. 9,340 sq.m. 6,521 sq.m. 19,838 sq.m. 2,708 sq.m.

68,290 sq.m.

54

NR TRANSACTIONS

MARKET TOTAL

TAKE - UP

MARKET TOTAL



Q1

201

9

Q1

201

9

Q1

201

9

Q1

201

9

0 sq.m.

Q1

201

9

Q1

201

9

Q1

201

9

0 sq.m.

10



21

14

3 3

1 1

19

14

9

45

3

0

5

10

15

20

25

Until 300 sq.m. 301 - 800 sq.m. 801 - 1.500 sq.m. 1.501 - 3.000sq.m.

3.001 - 5.000sq.m.

> 5.000 sq.m.

Nº

deals

Number of deals by interval area

Q1 2019 Q2 2019

30%

61%

9%

Reasons for letting (% GLA)

Expansion of area

Relocation

New company in Lisbon

11



43

01

24

21

75

3

53

5 13

85

82

39

18

84

1

48

11

33

9

22

24

3

11

34

10

67

69

53

24

9

20

02

0

57

65

95

76

0

3 000

6 000

9 000

12 000

15 000

18 000

21 000

24 000

sq.m

.

Take-up by Business Sector

Q1 2019 Q2 2019

12

TOP 10 – Deals Done Q2 2019


Market Zone New/Use Building GLA Tenant Business Sector Demand Reason

1 N Av. Fontes Pereira de Melo 41 9,950 KPMG Consultants and Lawyers Relocation

1 N Av. Fontes Pereira de Melo 41 6,950 PLMJ Consultants and Lawyers Relocation

3 U Open 5,471 Teleperformance Portugal Business Services Expansion of area

5 U Adamastor 4,260 Liberty Seguros Financial Services Relocation

7 U EUA 43 4,246 Conectys Business Services New business in Lisbon

6 U Arquiparque I, 4 4,193 Sociedade Portuguesa do Ar Líquido, S.A. Other Services Expansion of area

3 U Malhoa 19 3,215 Sitel TMT's & Utilities Relocation

6 U Q61 - Dona Amélia 3,069 Efacec Business Services Relocation

3 U Espaço Sete Rios - Twin Towers 2,102 EDP Distribuição Business Services Expansion of area

3 U José Malhoa, 22 1,934 KW Consultants and Lawyers Relocation


LISBON OFFICE MARKET – Q2 2019

13


Building ZoneArea

[sq.m.]Occ% Conclusion

António Pedro, 111 7 4,897 100% Q3 2018

Infante Dom Henrique, 342 5 8,000 100% Q2 2018

Camilo Castelo Branco, 36 - 44 1 3,312 100% Q2 2018

Espaço Sete Rios - Twin Towers 3 6,000 40% Q4 2018

Edifício LACS 4 4,000 100% Q2 2018

Beato 1904 7 2,001 100% Q2 2018

Marquês de Pombal 14 (AXA) 1 5,230 100% Q1 2018

Cinema Quarteto 2 1,048 0% Q2 2018

FPM 41 1 18,538 100% Q1 2019

TOTAL 53,026 sq.m.

NEW SUPPLY Q1 2019: 18,538 sq.m.

STOCK 2019 = 4,272,488 sq.m.

Zone2015

[sq.m.]

2016

[sq.m.]

2017

[sq.m.]

2018

[sq.m.]

Q1 2019

[sq.m.]

Q2 2019

[sq.m.]

Prime CBD 597,767 597,767 595,139 552,918 553,112 571,650

CBD 1,096,077 1,096,077 1,096,077 932,622 940,640 940,640

Emerging Zone 491,247 502,350 501,738 513,850 543,947 548,246

Secondary Zone 390,225 387,804 418,536 343,472 360,315 360,315

Parque das Nações 359,149 359,149 361,389 414,618 417,118 417,118

Western Corridor 909,036 916,250 916,250 934,946 965,469 965,469

Zone 7 768,003 778,524 778,524 463,173 469,050 469,050

TOTAL 4,611,504 4,637,921 4,667,653 4,155,599 4,249,651 4,272,488

Lisbon Office Stock Concluded Supply 2018 | Q1 2019

14



Pipeline confirmed

Building Conclusion date Market Zone GLA (sq.m) Pre-Let In negotiation

Fontes Pereira de Melo, 41 Q2 2019 1 18,538 14,400

Castilho, 213 Q3 2019 1 1,869

Defensores de Chaves, 4 Q3 2019 2 4,576

Quinta da Alagoa E2 e E3 Q3 2019 6 6,525

Quinta da Alagoa E4 Q4 2019 6 2,850

República, Paço do Saldanha Q4 2019 2 6,100

HUB Creativo do Beato 2020 7 11,000

Metropolis 2020 3 15,000 15,000

Monumental 2020 2 18,000

Galerias RITZ Q2 2020 1 2,300

EXEO – Fase 1 2021 5 30,000 8,500

BNP Paribas - Alcântara 2021 4 37,000 37,000

K Tower Q2 2021 5 15,000 7,000

AGEAS Headquarters Q3 2021 5 17,400 17,400

Carnaxide Tower 2021 6 13,770

TOTAL 199,928 83,800 15,500

Pipeline to be confirmed (project phase)

Building Conclusion date Market Zone GLA(sq.m) Pre-Let In negotiation

3ª Torre Colombo 2021 (to be confirmed) 3 30,000

EXEO – Phase 2 To be defined 5 38,000

Entrecampos To be defined 2 148,480

Metropolis To be defined 3 30,000

Amoreiras Prime To be defined 2 55,053

Former Fábrica Barros To be defined 5 30,000 30,000

HQ Jerónimo Martins Project Phase - Date conclusion to be defined 3 22,000 22,000

Offices Braço de Prata Project To be defined 7 7,000

TOTAL 360,533 52,000


15


9,0

1%

9,5

0%

13

,92

%

6,1

2%

5,8

2%

23

,42

%

11

,66

%

6,2

0%

8,5

8% 9,8

1%

6,0

4%

5,0

5%

23

,51

%

10

,38

%

6,2

3%

7,9

9%

8,5

7%

7,1

2%

3,0

8%

21

,89

%

9,6

7%

4,5

0%

6,9

5%

6,1

2%

5,0

7%

2,4

2%

18

,99

%

8,1

0%

3,6

6%

0,0

33

3,8

3%

0,3

5%

0,0

14

12

,08

%

5,2

3%

0%

5%

10%

15%

20%

25%

Prime zone CBD Zone Emerging Zone Secondary Zone Parque das Nações Western Corridor Global Market

%

Vacancy rate by market zone

1º half 2015 1º half 2016 1º half 2017 1º half 2018 1º half 2019

16



€1

9,0

0

€1

5,8

0

€1

5,0

0

€1

1,0

0

€1

6,0

0

€1

2,5

0

€2

0,5

0

€1

7,0

0

€1

6,0

0

€1

5,4

7 €1

7,0

0

€1

3,5

0

€2

1,0

0

€1

7,0

0

€1

4,0

0 €1

6,0

0

€1

7,0

0

€1

3.5

0

€2

2,0

0

€1

8,0

0

€1

6,0

0

€1

6,0

0 €1

8,0

0

€1

4,5

0

€2

2,0

0

€1

8,0

0

€1

8,0

0

€1

6,0

0 €1

8,0

0

€1

4,5

0

0,00 €

5,00 €

10,00 €

15,00 €

20,00 €

25,00 €

Prime Zone CBD Zone Emerging Zone Secondary Zone Parque das Nações Western Corridor

€/s

q.m

./m

month

Prime rents by market zone

2016 2017 2018 Q1 2019 Q2 2019

PORTO OFFICE MARKET

Q1 2019

3

PORTO OFFICE MARKET– Q2 2019

18


* Gross floor area

Take-up Q1 2019: 3,775 sq.m.

Nº deals: 13

Average GLA (quarter): 290 sq.m.

Take-up Q2 2019: 10,665 sq.m.

Nº deals: 16

Average GLA (quarter): 666 sq.m.

Q1 2019 – Main transactions Q2 2019 – Main transactions

BuildingGLA

(sq.m.)Tenant Reason for letting

R. Tenente Valadim 956* Gabinete Advogados Relocation

Torre das Antas 559 MEO | ALTICE New project

Boavista II 467 Grant Thornton & Assoc. New offices

Prévoir 406 Crédito Agrícola Relocation

BuildingGLA

(sq.m.)Tenant Reason for letting

R. Delfim Ferreira 8,132 Fair Journey Biologics Expansion

A&A – Av. Méneres 4,000 Revolut New offices

Torre do Foco 1,500 Ipoges Iberia New offices

Urbo 1,157 Enolis Expansion

19


Market ZonesPrime Rents (€/sq.m./month)

Q2 2019

CBD €18.00

Baixa €17.00

ZEP – Zona Empresarial do Porto €14.00

Oriental €13.00

Matosinhos €14.00

Maia €13.00

Gaia €13.00

Future Supply - PIPELINE

Pipeline: > 150.000 sq.m.

PORTO OFFICE MARKET– Q2 2019

Building GLA (sq.m.) Conclusion date

Porto Business Plaza * 15,500 2020

Urbo Business Center 16,100 2019

Porto Office Park ( POP) 31,000 2019

Palácio dos Correios 16,800 2019

Expansão do Centro Empresarial da Lionesa* 45,000 After 2020

Projeto ICON Offices 24,000 After 2020

Boavista Office Center * 8,000 2019

Edifício Sonae - Maia Business Center ( Sede) 7,000 2019

* Expansion | Requalification | Renovation

Thank youFrom the team here at Savills Portugal

Praça Marquês de Pombal 16, 7º

1250-163 Lisboa

+351 21 313 9000

Praça Mouzinho de Albuquerque 113, 3º

4100-359 Porto

+351 22 120 1387

[email protected]

savills.pt

lisbon & porto office market report q2 2019 · 5 u adamastor 4,260 liberty seguros financial...

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