12. April 2010 
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European prime rents stabilize across all sectors
Retail yields fell marginally during the quarter. The CB Richard Ellis retail yield index for the EU-15 area fell by five basis points in the quarter and 21 basis points from the same point last year. Seventeen of the 49 locations saw downward yield movements, 31 remained unchanged and just one saw an increase. The single increase was in Athens where yields increased by 25 basis points to 6%. The largest yield reductions of 50 basis points were in Bucharest (down to 11.5%) and Edinburgh (5.75%) with a further 10 locations showing a yield reduction of 25 basis points. Prime retail yields in Dublin are stable at approximately 6.5% having increased by a remarkable 400 basis points from peak.
Industrial yields fell during the quarter. The CB Richard Ellis industrial yield index for the EU-15 area fell by three basis points in the quarter and 16 basis points on the year. Thirteen of the 46 locations in the survey saw downward yield movements, 31 remained unchanged and two saw an increase. The two yield increases were in Istanbul (up 100 basis points to 11%) and Athens (up 25 basis points to 8.25%). The largest yield reductions were in Kyiv (100 basis points to 16%), with 50 basis points reductions in Paris (to 7.75%) and Oslo (to 7%). Prime industrial yields in Dublin are stable at 9.0%.
RENTS
Prime office rents across Europe increased during the first quarter of 2010. The CB Richard Ellis office rent index for the EU-15 area increased by 1.1% in the quarter, but showed a year-on-year fall of 4.5%. Five of the 55 locations in the survey saw increases in the level of prime rent, nine fell and 41 remained unchanged. This included Dublin, where prime office rents are stable at €376 per square metre, having experienced a 44% decline from peak. The largest increases occurred in Tel Aviv, where rents increased by 13% to €231 per sq m per annum and the City of London where rents increased by 9% to £47.50 per sq ft per annum. The largest falls were in Cape Town and Durban where rents fell by 8% to €135 per sq m per annum.
Prime rents in the retail sector were effectively unchanged, with the CB Richard Ellis retail rent index for the EU-15 area falling by 0.1% in the quarter, but showing a slight increase of 0.3% over the year. Prime retail rents in Dublin are stable quarter-on-quarter at €6,500 per square metre having declined 35% from peak.
European industrial rents also saw minimal change in the quarter. The CB Richard Ellis industrial rent index for the EU-15 area increased by 0.2%, taking the year-on-year rate of growth to -2.2%. Thirty-five of the 46 locations in the survey saw the prime rent remaining stable, 10 declined, and one showed an increase. The largest falls were in Edinburgh (down 7% to £6 per sq ft per annum) and Sofia (also down 7% to €54 per sq m per annum). The single increase occurred in Rotterdam, where rents increased by 4% to €70 per sq m per annum. Prime industrial rents in Dublin are currently €86 per square metre, having experienced a decline of some 34% from peak.
Industrial yields fell during the quarter. The CB Richard Ellis industrial yield index for the EU-15 area fell by three basis points in the quarter and 16 basis points on the year. Thirteen of the 46 locations in the survey saw downward yield movements, 31 remained unchanged and two saw an increase. The two yield increases were in Istanbul (up 100 basis points to 11%) and Athens (up 25 basis points to 8.25%). The largest yield reductions were in Kyiv (100 basis points to 16%), with 50 basis points reductions in Paris (to 7.75%) and Oslo (to 7%). Prime industrial yields in Dublin are stable at 9.0%.
RENTS
Prime office rents across Europe increased during the first quarter of 2010. The CB Richard Ellis office rent index for the EU-15 area increased by 1.1% in the quarter, but showed a year-on-year fall of 4.5%. Five of the 55 locations in the survey saw increases in the level of prime rent, nine fell and 41 remained unchanged. This included Dublin, where prime office rents are stable at €376 per square metre, having experienced a 44% decline from peak. The largest increases occurred in Tel Aviv, where rents increased by 13% to €231 per sq m per annum and the City of London where rents increased by 9% to £47.50 per sq ft per annum. The largest falls were in Cape Town and Durban where rents fell by 8% to €135 per sq m per annum.
Prime rents in the retail sector were effectively unchanged, with the CB Richard Ellis retail rent index for the EU-15 area falling by 0.1% in the quarter, but showing a slight increase of 0.3% over the year. Prime retail rents in Dublin are stable quarter-on-quarter at €6,500 per square metre having declined 35% from peak.
European industrial rents also saw minimal change in the quarter. The CB Richard Ellis industrial rent index for the EU-15 area increased by 0.2%, taking the year-on-year rate of growth to -2.2%. Thirty-five of the 46 locations in the survey saw the prime rent remaining stable, 10 declined, and one showed an increase. The largest falls were in Edinburgh (down 7% to £6 per sq ft per annum) and Sofia (also down 7% to €54 per sq m per annum). The single increase occurred in Rotterdam, where rents increased by 4% to €70 per sq m per annum. Prime industrial rents in Dublin are currently €86 per square metre, having experienced a decline of some 34% from peak.
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