For institutional fund strategies, Kirchberg carries the strongest investor flag in Luxembourg, with prime yields around 4.8%.

  • Trophy submarket (Kirchberg) carries the strongest investor flag.
  • Prime yield: 4.8%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Luxembourg office fund strategy and flag

For institutional fund strategies, Kirchberg carries the strongest investor flag in Luxembourg, with prime yields around 4.8%.

TL;DR

  • Trophy submarket (Kirchberg) carries the strongest investor flag.
  • Prime yield: 4.8%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Luxembourg, that's Kirchberg and assets like KAD II Tower (Konrad Adenauer), European Court of Justice.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityLuxembourg
countryLuxembourg
regionEMEA
classARentLocal50 EUR/sqft/yr
classARentUsd$54/sqft/yr
vacancy4.8%
typicalLeaseYears9
typicalRentFreeMonths6
submarkets5
primeYieldPct4.8%
primeYield4.8%
trophyAnchorKirchberg

Frequently asked questions

Where do core funds buy in Luxembourg?
Trophy submarket — Kirchberg — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

Full sources index · Submit a correction

Related topics