Office markets around the world displayed some signs of marginal improvement during the second quarter of the year, but were relatively flat over the course of the first six months of 2012. This is the finding of the latest CBRE Global Office Indices Market View, which revealed its index for rental growth increased by 0.3 per cent quarter-on-quarter. This is significantly lower than the figures recorded in the same period a year earlier, when rents climbed by 1.8 per cent.
However, CBRE pointed out the picture is brighter in the Americas - and particularly the US - than in other parts of the world, with office markets in the region posting rental growth of 0.96 per cent in the second quarter of this year. By contrast, Asia-Pacific offices saw rents go up by 0.1 per cent, while in Europe they were in negative territory, down by 0.05 per cent. "Prospects for rent growth in many Americas markets have been strong, even in the face of this turmoil given the limited supply of prime space in quality locations," the report stated.
The organisation also noted any increases in the capital values of real estate investment assets were held back by this weak rental growth. Globally, the cost of office properties rose by 0.32 per cent in Q2, with a 1.45 per cent increase recorded in the Americas providing a stark contrast to the 1.04 per cent drop in capital values noted in Europe, the Middle East and Africa.
Earlier this month, Jones Lang LaSalle published data that suggested global commercial property markets are on the road to recovery, albeit slowly. According to the firm, investment was up by 24 per cent in the second quarter, compared to the three months from January to March, while leasing activity improved on a quarterly basis but is still weaker than in the same period in 2011.
- Wednesday 15 August 2012