Following the international financial crisis, the prevailing uncertainty has affected business confidence and economic activity, forcing companies to renegotiate their existing office rents or to consider smaller units. In Athens, the office market was very quiet during the first six months of the year, but a growing interest started to arise from April for pre-let assets with long term guaranteed leases. Supply of good quality office space of significant size is scarce, while dated small office space supply, especially in CPD, is high. Supply reaches 20% in certain streets where old commercial buildings have been vacant for a long time. Prime office rent decreased to 27 €/ sq m/ month. Current yields are estimated at 7.0% to 7.5%.
