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13. August 2012 
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Rental performance - a mixed picture
Jones Lang LaSalle’s Global Office Index tracks the rental performance of prime office space across 90 major markets in the Americas, Asia Pacific and Europe. This fourth edition shows mixed performance in prime office rental growth, with subdued corporate occupier activity contributing to weaker growth in some markets, while other markets continue to display remarkable resilience.
Rents for prime office space in the world’s major cities grew by an average of 0.6% during Q2 2012, up marginally from 0.5% in Q1 2012. On an annualised basis however, prime rents were up 3.0%, the lowest year-on-year growth since Q3 2010.
Asia Pacific’s markets have seen rental growth pick up moderately from 0.2% in Q1 to 1.0% in Q2, largely due to rents increasing in Tokyo for the first time since Q1 2008, coupled with smaller rental declines in Hong Kong and Singapore. The Americas matched growth in Asia Pacific with an increase of 1.0% quarter-on-quarter, albeit slightly decelerating from the 1.6% q-o-q pace registered in Q1. Given the negative economic backdrop, rents in Europe corrected further by 0.2% following a decline of 0.3% in Q1.
Across the 90 monitored markets, Jakarta (+41.1% y-o-y) and Beijing(+40.7%) rank as the strongest performers. A number of Latin American markets also feature in the Top 10:Mexico City(+19.7%),Sao Paulo(+18.2%) and Santiago (+17.3%). Robust demand from the technology and commodities sectors continues to support double-digit annual rental growth in a number of markets such as San Francisco (+17.5%), Silicon Valley (+10.9%), and Perth (+23.2%). The other markets registering double-digit annual rental growth are Sydney (+12.5%),Manila (+10.6%) and Chennai (+10.0%).
Aquarter of the markets covered by the Index registered rental declines in Q2, reflecting a range of factors including weak corporate occupier demand (particularly from the financial sector), oversupply or poor economic fundamentals. The largest quarterly falls were recorded in Ho Chi Minh City (- 8.4%) and Dublin (-6.5%), while declines in Hong Kong andSingapore moderated from Q1(with both markets registering 1.2% falls).Sao Paulo registered the first quarterly decrease (-3.0%) in its current cycle.
Rents for prime office space in the world’s major cities grew by an average of 0.6% during Q2 2012, up marginally from 0.5% in Q1 2012. On an annualised basis however, prime rents were up 3.0%, the lowest year-on-year growth since Q3 2010.
Asia Pacific’s markets have seen rental growth pick up moderately from 0.2% in Q1 to 1.0% in Q2, largely due to rents increasing in Tokyo for the first time since Q1 2008, coupled with smaller rental declines in Hong Kong and Singapore. The Americas matched growth in Asia Pacific with an increase of 1.0% quarter-on-quarter, albeit slightly decelerating from the 1.6% q-o-q pace registered in Q1. Given the negative economic backdrop, rents in Europe corrected further by 0.2% following a decline of 0.3% in Q1.
Across the 90 monitored markets, Jakarta (+41.1% y-o-y) and Beijing(+40.7%) rank as the strongest performers. A number of Latin American markets also feature in the Top 10:Mexico City(+19.7%),Sao Paulo(+18.2%) and Santiago (+17.3%). Robust demand from the technology and commodities sectors continues to support double-digit annual rental growth in a number of markets such as San Francisco (+17.5%), Silicon Valley (+10.9%), and Perth (+23.2%). The other markets registering double-digit annual rental growth are Sydney (+12.5%),Manila (+10.6%) and Chennai (+10.0%).
Aquarter of the markets covered by the Index registered rental declines in Q2, reflecting a range of factors including weak corporate occupier demand (particularly from the financial sector), oversupply or poor economic fundamentals. The largest quarterly falls were recorded in Ho Chi Minh City (- 8.4%) and Dublin (-6.5%), while declines in Hong Kong andSingapore moderated from Q1(with both markets registering 1.2% falls).Sao Paulo registered the first quarterly decrease (-3.0%) in its current cycle.
Fotos: Jones Lang LaSalle
