According to the latest release of data from CBRE, the office sector is continuing to perform well on a global basis. In its Global Office Rent and Global Capital Value Indices the firm revealed global office rents in Q4 2011 were 5% higher than Q4 2010, while capital values in the office sector were up 8.02% year on year. The indices show that growth is based on a strong performance in the first half of the year, while growth slowed in the second half, quarter on quarter figures for Q4 were near-flat with rents up 0.48% on the quarter, and capital values up 0.42% on the quarter.
"After a good start in 2011, global office rental rates and capital value recoveries were delayed in the fourth quarter by the dominant global macro-economic issues," said Dr. Raymond Torto, CBRE Global Chief Economist. "We believe the recoveries in commercial real estate are only delayed not denied, as new construction pipelines are sparse except in a select number of markets."
CBRE believes that the commercial property recovery has only been put off, not stopped, due to investors adopting a more cautious outlook amidst the continued economic uncertainty.
However, this attitude only seems to have really made an impact in the final quarter of last year. The Global Office Rent Index has grown at an average rate of 1.2% between Q2 2010 and Q3 2011, before falling to 0.48% in Q4. The Global Office Capital Value Index saw average growth of 2.2% between Q4 2009 and Q3 2011, before growth fell to just 0.42% in Q4 2011. Both indices are now 10% below their pre-recession peaks.
- Wednesday 29 February 2012