The macro malaise across the globe has reached the prime office market, as the upward movement in prime rents and capital valies shows only a modest heartbeat.
Global rents were essentially flat during the first half of 2012 and edged up only marginally this quarter - a stark contrast to global rent growth in 2011. Last year, global rents and the commercial real estate industry overall were broadly outperforming other metrics of global growth. At the time, commercial real estate was the proverbial 'bright spot'! Global economic headwinds persisted; yet commercial real estate indicators perserved as CRE indicators - both regionally and globally - posted robust advancement. Recently however, the economic malaise that continues to plague the global landscape now weights more heavily on the leasing sector.
Source : CBRE