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Global Office Market Indices Show Little Change in Q3 2012

By on Nov 15, 2012 in Research

GLOBAL OFFICE MARKET INDICES SHOW LITTLE CHANGE IN Q3 2012

CBRE’s Global Office Indices reveal that market values and rents were largely unchanged in Q3 2012, as both occupiers and investors remain bogged down by uncertainty. CBRE’s Global Rent Index registered a nega-tive 0.07% while the Global Office Capital Value Index ticked up slightly,
with a gain of 0.6%.

While it may be tempting to jump to the conclusion that this quarter’s Global Index results serve up the usual ‘depressing news’ we’re acclimated to, our impression is quite the contrary. Investor and occupier sentiments are undeniably cautious given the prevail-ing uncertainty. Yet even as that very uncertainty has prevailed over many quarters, the average annual growth rates recorded since each index’s trough have measured at 3.4% and 7.5% for Office Rents and Capital Values respectively. The growth rates (recoveries) recorded following the Global Indices’ troughs were quite robust even against tumultuous conditions.

Despite the caution, both the Global Office Rent and Capital Value Indices are still slightly above where they were last year. The limited movement we’re seeing is certainly a manifestation of the strained global economic environ-ment; however this quarter’s results indicate a pause in the market, not a fundamental change in underlying market dynamics.

This is an extract from CBRE‘s Global Office MarketView Q3 2012.  To read the full document please click here.

Chris Hardy has extensive research experience. Chris specializes in property research internationally writing for CBRE specifically about global issues and trends.

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