01.03.10
According to CB Richard Ellis\' new Global Office Rental Cycle report almost all real estate markets in Europe and Asia are now seeing rents falling at a slower rate and in some cases stabilising, a trend which is expected to continue as take-up improves and vacancy moderates in 2010. In contrast, most US office markets, with the exception of New York, are further back in the rental cycle and are likely to see further falls in rents. The global economic outlook for 2010 is more optimistic than last year and the world economy is expected to return to growth, according to CBRE’s report. This projected aggregate growth masks a varied pattern of recovery: the strongest growth is expected in Asia Pacific and the weakest in Europe. Despite this, London remains at the forefront of recovery in global office rents. The City of London surpassed expectations for the 2009 year-end by registering prime rents at £43.50 / sq ft / annum and rental growth of 3.5% in Q4 2009, defying forecasts that rents would remain stable. Hong Kong is also thought to have reached the bottom of the cycle. Rents are expected to remain at least stable for the next few quarters.