NEW YORK Asking rents for prime office space in
10 major global markets rose in the year ended June 30, with
the London's West End posting the biggest rise and its greatest
increase in 19 years, CB Richard Ellis Group Inc(CBG.N) said on
Five of the markets saw rents spike more than 20 percent,
while vacancy rates declined in all and remained in the single
digits, the world's largest real estate services company said.
"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,"
said Ward Caswell, CB Richard Ellis U.S. director of research,
said in a statement.
The West End of London saw the greatest leap in asking
rent, up 37.1 percent to an average of 120 pounds sterling, or
$243.73 per square foot. Currency conversions were done on
Tokyo posted the second-highest asking rent, at 690,000 yen
per tsubo, or $163 per square foot. Rents rose 16 percent.
Paris asking rent rose 13.7 percent to 771 euros per square
meter or $97.92 per square foot. Hong Kong rents rose 24
percent to HK$717.60 per square foot, or $91.65 per square
Although it is the most expensive U.S. office market, New
York looked like a bargain with average asking rent at $63.56
per square foot, up 34.4 percent, the second greatest jump of
Madrid posted the third-highest increase, rising about 24.5
percent to 456 euros per square meter, or $57.90 per square
Sydney's average asking rent rose 8 percent to AUS $641 per
square meter, or $50.94 per square foot.
Washington office rents rose just 8.5 percent to $48.31 per
square foot, followed by Los Angeles at $32.16 per square foot
but rising 20 percent.
Toronto rounded out the markets at CAN $28.82, or $27.29
per square foot, up 3 percent.
(Reporting by Ilaina Jonas)
(1 tsubo = 35.6 sq. feet)