Events Global Real Estate Institute European Summit 2007 September 10-11, 2007 Paris ICSC Research Conference September 16-18, 2007 Toronto California Mortgage Bankers Association 10th Annual Conference September 24-26, 2007 Las Vegas

	1,900 employees 45 offices, 28 countries $59 billion in assets $78 billion served assets

 

Did You Know?

Asking rent for prime office space increased in 10 major global business centers during the 12 months ending June 30, with five cities posting increases in excess of 20 percent, according to new research from CB Richard Ellis Group Inc. Vacancy rates declined virtually across the board and remained in single digits in all 10 markets.

Of the 10 markets surveyed, the West End of London – the most expensive office market in the world – experienced the sharpest rent increase, rising 37 percent to an average of $243.73 per square foot. Rent has not grown this rapidly in London’s West End in 19 years. At mid-year, vacancies in London’s West End dropped to 2.5 percent – the lowest since mid-year 2001.

Madrid posted the third highest increase, rising approximately 25 percent to $57.90 per square foot. Meanwhile, rent in Paris increased approximately 14 percent $97.92 per square foot, as vacancy fell to 3.8%.

New York recorded the most significant asking rent increase in the U.S., rising 34 percent – the sharpest year-over-year increase in the city in at least two decades – to an average of $63.56 per square foot as market-wide vacancy fell to 4.4 percent.

Los Angeles asking rent also recorded a significant increase, rising 20 percent to an average of $32.16 per square foot at mid-year, as vacancy fell to 8.9 percent. Washington D.C.’s asking rent increased 8 percent to $48.31 per square foot.

Rents were up across Asia as well, with Hong Kong's asking rent jumping 24 percent to an average of $91.65 per square foot, as vacancy dipped to 3.9 percent. Tokyo rents rose 16 percent to $163.04 per square foot. Sydney’s rent rose 8 percent to $50.94 per square foot.

“Rent increases of more than 20 percent in bellwether cities like London, New York and others significantly underscore the continued strength of the global office market,” says Ward Caswell, CBRE’s U.S. director of research.

Copyright 2007, Penton Media.. All rights reserved. This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, re-disseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of Penton Media.