Magazine article Mortgage Banking

Office Asking Rents Rise in Major Markets in 2005

Magazine article Mortgage Banking

Office Asking Rents Rise in Major Markets in 2005

Article excerpt

Hong Kong, London and New York were among the strongest office markets in the world in 2005, with significant increases in asking rents and declining vacancies, according to Los Angeles-based CB Richard Ellis (CBRE) Research.

CBRE Research's preliminary year-end figures noted that asking rents for class-A office space increased simultaneously in 10 major global markets for the first time this decade.

"Global investment activity has been strong during the past few years, but rising asking rents and falling vacancies indicate that the fundamentals are catching up," said CBRE Research's Steven Dunn. "As we start the new year, strong demand for office space, modest construction activity and continued capital flow should fuel continued growth in the investment market."

Asking rents in Hong Kong increased 45 percent from year-end 2004 to finish 2005 at $58.81 per square foot, while vacancy fell 2.1 percentage points to 4.8 percent at year end. London--the most expensive market in the world--saw asking rents increase by 6.7 percent as compared with 2004, to $141.72 per square foot, with vacancy falling 2.4 percentage points to 7 percent at the end of 2005, said CBRE.

Meanwhile, the North American real estate market posted a strong 2005--particularly in New York, where a rebounding economy helped produce an 11. …

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