Property value and rent growth continued in the Americas, balancing flat performance and modest declines in the EMEA and Asia Pacific markets.
Considering the degree of uncertainty and caution permeating the global economy through the end of 2012, the performance of commercial real estate assets has been resilient. Fundamentals in absorption, occupancies and rents have seen gradual improvements while new supply is scarce, a dynamic which has maintained and improved the leasing market. Strong occupier and investor demand for prime space in the most desirable locations has played a significant role in the ongoing commercial real estate recovery as well,” said Dr. Raymond Torto, CBRE Global Chief Economist.
CBRE Global Capital Value Indices
The CBRE Office Capital Value Index registered 146.1, up 0.6% on the quarter and 1.9% year-over-year. The plateau reached in the Index can be attributed to regional differences with strength in the Americas counterbalanced by weaker performance elsewhere in the world.
The Americas Office Rent Index rose by 1.6% in Q4 and has risen 4.0% relative to Q4 2011. This performance reflects the slow, steady recovery across the region, particularly the US.
In the U.S., technology, energy and healthcare industries have driven leasing demand across the South and West portions of the US, including energy markets such as Houston; technology markets such as San Francisco, Seattle, and San Jose; and healthcare/biotech markets such as Austin and Boston.
The Asia Pacific’s Rent Index fell for the second consecutive quarter, dropping by  bps in Q4. 2012’s annual drop of 0.3% was the first annual decline since 2010. Leasing activity throughout Asia Pacific slowed substantially; with the exception of a select few markets such as Tokyo and Seoul where large volumes of new supply have prompted occupiers to upgrade to higher quality buildings.
The EMEA Office Rent Index also declined slightly for a second consecutive quarter, by 35 bps in Q4. EMEA’s Rent Index performance is clearly linked to the weak economic climate amidst the ongoing European sovereign debt challenges. While the immediate threat of a Euro zone breakup has subsided underlying structural changes and austerity programs are still to be formalized and implemented.
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About CBRE Group, Inc.
CBRE 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 and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE 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 website at www.cbre.com .