The global office market witnessed prime rents increase by 3% in 2012, although this was largely supported by the impressive growth levels seen in South America, namely Brazil and Colombia. However, it was London (West End) that overtook Hong Kong to become the most expensive office market across the world, with growth reinforced by the scarcity of good-quality space amid steady demand. Despite this global rental rise, a significant number of office sector performances worldwide were in fact subdued. Many markets suffered under the weight of prevailing economic uncertainties, which in turn increased apprehension and caution among occupiers. As a result, cost-cutting requirements fuelled tenant demand, with many companies seeking to rationalise both their operations and occupied space.
Source : Cushman & Wakefield