Los Angeles, August 18, 2011 –
The latest CB Richard Ellis Group, Inc. (CBRE) Global Office
Rent Index posted a year over year increase of 7.4% during the second quarter
(Q2) of 2011—the fifth straight quarter the index has risen—driven by
performance in Asia Pacific.
“Although the global economy presented no shortage of
economic headwinds during the second quarter of 2011, commercial real estate
performed better globally than it did the previous quarter,” said Dr. Raymond
Torto, CBRE’s Global Chief Economist. “With limited
new-construction in many markets, tenants continued to face a shortage of
preferred space, which helped to stabilize or place modest upward pressure on
rents.”
The CBRE Global Office Rent Index, which will be published in the
Company’s latest Global Office
MarketView, shows that while the prevailing
trend of global rents was broadly improving, the rate of growth was still
well below those reached prior to the global financial crisis.
The improvement in the Index was driven by strong rental growth in Asia
Pacific, which recorded a 13.4% year-over-year increase in Q2 2011. This marks
Asia Pacific’s fifth consecutive quarterly increase also and the strongest
growth rate the region has experienced since its previous peak in the fourth
quarter of 2007. The growth in Asia Pacific was fueled by strong business and
occupier sentiment as well as by occupiers’ preference for prime properties of
which supply has been limited.
The second quarter of 2011 marked the first significant positive
quarter, whether measured year over year or quarter over quarter, for the
Americas. The improvement was modest with rents up 1.5% year over
year. The CBRE report notes that rent growth for the Americas has
been muted due to a slow economic recovery in the U.S., cautious occupier
sentiment and high vacancy rates.
In EMEA, rents grew 2.4% year over year during Q2 2011, down slightly
from the 2.8% increase reached in both Q4 2010 and Q1 2011. While
EMEA rents recovered from the global financial crisis sooner than those in the
Americas the recent moderation in growth is associated with the continued
uncertainty posed by the European sovereign debt crisis.
While commercial real estate performance indicators showed signs of
improvement in the second quarter, weak conditions in the developed markets have
kept global net absorption rates well below pre-recession levels. Asia Pacific
is the only region that has reached pre-recession net absorption levels, and
with annualized completion rates still relatively low historically, this region
is set to experience continued downward pressure on vacancies and upward
momentum in rental growth.
The following graph depicts the CBRE Global Office Rent Index over the
last decade:
The CBRE Global Office Rent Index was created by CB Richard Ellis
Research and is comprised of data from 123 cities around the world. The base
period for the indices is Q1 2001.
To speak with a CBRE expert, please contact Robert McGrath
(212.984.8267 or Robert.McGrath@cbre.com).
About CB Richard Ellis
CB Richard Ellis Group,
Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los
Angeles, is the world’s largest commercial real estate services firm (in terms
of 2010 revenue). The Company has approximately 31,000 employees
(excluding affiliates), and serves real estate owners, investors and occupiers
through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis
offers strategic advice and execution for property sales and leasing; corporate
services; property, facilities and project management; mortgage banking;
appraisal and valuation; development services; investment management; and
research and consulting. Please visit our Web site at www.cbre.com.