According to new data from Jones Lang la Salle the growth in prime office rents in Q4 marked the 8th consecutive quarter of growth in the sector. The data shows that prime office rents were up 0.8% in Q4, compared to Q3, and up 6% compared to Q4 2010. It also shows that at 13.6% office vacancy rates are now at a 2 year low.
"The majority of global leasing markets are holding firm, and many are showing remarkable resilience especially among the BRIC countries, as well as robust showings from Canada, Australia, Germany and the Nordics,” said Jeremy Kelly, Director in Jones Lang LaSalle’s Global Research team and author of the firm’s Global Market Perspective. “While leasing markets in the major financial centres are softening, the limited supply pipeline should ensure that they do not move significantly out of balance."
The findings are in the latest release of JLLS' Global Office Index, which tracks the rental performance of prime office space in 81 markets across the Americas, Asia Pacific and European Regions. According to the index the Americas saw the biggest growth in office rents at 1.2% quarter on quarter. Meanwhile Asia-Pacific saw prime office rents grow much slower than the previous quarter, decelerating from 2.5% to 0.9% quarter on quarter. JLLS put this down to slowing corporate demand.
The report also shows a positive performance in the European prime office sector, which is very surprising given the continued economic dismay caused by the Euro sovereign debt crisis. Despite the crisis after a flat quarter in Q3 growth resumed at 0.4% in Q4. Finally, JLLS' outlook for the year ahead is that rental demand will remain largely steady this year, with growth in most major markets and Beijing, Toronto and San Francisco topping the charts with double digit growth.