December  2010  VOL. 3

Foreign Exchange

As the world economy emerges from the severe financial downturn, the focus of global office development activity has shifted to Asia, according to new research from CB Richard Ellis Global Research and Consulting.

Among the four major global regions – Asia, Western Europe, North America and the Pacific – only Asia will witness significant growth in office completions in 2010 and 2011, before slowing to a still slightly higher-than-normal level in 2012.

This high rate of office development reflects strong corporate and investor confidence in Asia, excluding Japan. This confidence has emboldened developers in some of the region's largest office markets to press on toward completing projects that had been delayed or briefly halted during the most severe part of the downturn.

Of the 293.2 million square feet of office space expected to be completed in the leading global office markets between 2010 and 2012, some 65% (190.6 million square feet) is set to come online in Asia, according to CBRE's new report, "Global Office Development Cycle: Where Are We Now?.”

In comparison, about 24% (69.1 million square feet) is slated for completion in the business hubs of Western Europe—whereas 8% (23.1 million square feet) will become available in North America and 4% (10.5 million square feet) will be in the pipeline in the Pacific region.