Global Office Value, Rent Indexes Jumps 12% in First Quarter, CBRE Says
An index of global office values jumped 12 percent in the first quarter of 2011 from a year ago while a rent index rose 4.3 percent, real estate services firm CB Richard Ellis Group Inc. said in a report.
“The fact that capital values have rebounded ahead of rents reflects several factors, including the deeper integration of commercial real estate into the global capital markets,” Raymond Torto, CBRE’s global chief economist, said in an e- mailed release. The pricing of real estate relative to other assets and the availability of favorable financing in the U.S. have also contributed to the recovery, he said.
Rents in the Asia-Pacific region jumped 11.3 percent, while those in Europe, the Middle East and Africa also had gains, CBRE said. While U.S. rents were flat from a year ago, values added 9 percent, the group said.
With limited construction of new office space, particularly in Europe and the Americas, rents are expected to continue rising modestly through the rest of this year, CBRE said. CBRE’s rent index, which fell 17 percent from its peak of 119 in mid- 2008, is now at 104, the group said.
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