Tech leasing jumps as finance's share of European offices slips

Tech firms took 22 percent of European office take-up in the first half of 2026, up from 14 percent a year earlier, according to Savills research cited by IREI. Professional and business services—lawyers, accountants, consultants—remained the largest tenant group at 24 percent, though that was down from 26 percent. Combined, the two sectors accounted for 46 percent of leasing activity, close to half the market.

Banking, insurance, and finance fell to 16 percent of activity from 21 percent, a share Savills says is closer to its long-term average. Flex office providers held at 3 percent of demand, unchanged from last year, as companies take interim space amid prime vacancy shortages and a preference for plug-and-play services.

Average European office vacancy remained stable at 9.4 percent in the second quarter. CBD vacancy averages 4.9 percent, with prime CBD vacancy estimated at around 2 percent, per Savills. The spread between the prime figure and the headline rate is the market: demand is real but narrow, concentrated in a thin band of well-located buildings while secondary stock competes for what remains.

For underwriters, the tenant roster now matters as much as the vacancy line. Expanding AI firms and returning technology companies will want different floor plates, power capacity, and amenities than the banks they replace. European offices are a two-speed market, and the Savills data show which speed tenants are choosing: prime CBD buildings near 2 percent vacancy, not the continental 9.4 percent.

Allocators weighing European office exposure should underwrite prime scarcity rather than the continental average. If the 2 percent estimate holds, it implies rent growth in a narrow band of buildings—a thin basis for a broad asset-class bet, but the one the data support.