Milan, Italy
 

Milan and its Commercial Real Estate Market are unique in many respects. Did You Know...

•   Milan, located in northern Italy, is the nation's leading business, financial, and commercial center. Milan is also one of Europe's most developed and wealthiest urban cities. It generates about 10% of Italy's GDP, and its per capita income is significantly higher than the national average.

•   The city of Milan is one of the world's most influential fashion and design capitals, with over 30 of the most well-known and leading international fashion brands and companies such as Prada, Giorgio Armani, Versace, Dolce & Gabbana, and many others. 

•   Milan's major industries include the manufacturing of chemicals, textiles, and silk production. The city is also heavily engaged in the production of aircrafts, automobiles, food products, clothing, glass, leather and rubber goods, machinery, pharmaceuticals, and plastics. In addition, Milan has a large construction, publishing, and communications industry.

•   The city is one of the major artistic and educational centers in northern Italy. Major landmarks in the city include the Duomo, Teatro alla Scala, the Castello Sforzesco, and Galleria Vittorio Emanuele. University of Milan-Bicocca and Politecnico di Milano are two of the major universities in Milan, which has over 180,000 university students.

•   The transportation system in urban Milan is one of the most important in Italy. Malpesa International Airport is the largest of the three airports in the city. The city is the second railway hub in Italy. Greater Milan has one of the most extensive tramway systems in the world, with over 178 miles of track.

•   The increase trend in employment, especially in the service sector, and growing confidence in the economy is increasing the demand for high quality office space in Milan. Absorption of prime office space in 1Q 2007 was at least 10% higher than 1Q 2006. Demand in the office market continues to be driven by the banking and financial sectors. 

•   The amount of new office space available is not enough to satisfy the demand; however, new space is currently under construction. About 818,000 square feet are expected to be added to the market between the second and fourth quarter of the year. Between 2008 and 2012, more than 9.6 million square feet are expected to be delivered to the market. 

•   Rents are currently at the same level as the previous quarter, but they are estimated to increase over the next six months, especially in central areas.  In non-central areas rental rates will depend on the quality of the space.