Where Business and Leisure Converge
The CBD is the Grand Duchy’s second biggest office market, counting almost 800,000 sqm of stock. Situated in the heart of the city, it boasts the largest and most accessible amenities of all the office markets, with an abundance of shops, cafes, restaurants, hotels and more within walking distance. And for those wanting speedier travel, the tram offers a quick connection to central station in the south and Findel Airport to the north. From luxury boutiques along Grand Rue and Rue Philippe II to the inviting squares of Place d’Armes and Place Guillame II to the old city charm of the Grund, the CBD offers a full experience.
The Boulevard Royal is home to the largest office buildings here and a particularly diverse set of occupiers. Banking, finance and insurance companies, fintech, business and commercial services, energy and professional services can be found here. The Luxembourgish State also maintains a strong presence in the CBD.
This well-developed office market commands the highest rents in the country, up to 52 €/sqm/mo (excl VAT) for top spaces. It also has among the lowest vacancy, too, meaning office space can be difficult to secure when it becomes available. Given the high prices and competition for space, floorplates are typically smaller than other city markets, such as Kirchberg and Cloche d’Or.
The pipeline is extremely limited in the short- and medium-term. The latest office to be developed – the Royal Park along Avenue de la Porte Neuve – was +90% leased and sold upon completion, highlighting the desirability of this district from occupiers and investors alike.
Overall, occupiers enjoy an abundance of amenities in the CBD along with an enviable address. Those wanting to relocate here must strategize and act quickly or be willing to sign from plan to secure their future space.
