Jones Lang LaSalle (JLL) has claimed that global office vacancy rates will start to trend downwards during 2011, with many of the world's "high-order" markets firmly within the rental upswing phase.
The real estate consultancy firm explains that in Europe and the US new office developments
and commencements are at historic lows - leading to a major shortage of Grade A space. This in turn will cause rents to gradually increase in the region, JLL said.
Take-up levels are expected to rise modestly on 2010 in both Europe and the US, the consultancy firm added.
In contrast, the Asia Pacific region is forecast to reach the peak of its development cycle next year with an additional 6.8 million square metres of office space being made available. However, JLL states that strong occupier demand will ensure that the majority of this space is filled and vacancy rates will not rise significantly.
This will be coupled with strong economic conditions
and business confidence in the region, while relocation and upgrading are likely to underpin the bulk of demand.
- Wednesday 24 November 2010