Colliers Global Office Highlights Second Half 2011
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HIGHLIGHTS GLOBAL OFFICE WWW.COLLIERS.COM SECOND HALF 2011 | OFFICE JAMES COOK Director of Research | USA Global Office Trend Forecast • Global office vacancies will continue their decline, due to steady demand and low levels of new construction in North America and Europe. • The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a better location as their leases expire. • The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction will be felt most profoundly in a handful of commercial property markets within the most troubled nations. Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption and increased vacancy as the region enters a mild recession. Global Office Demand Growth Slow and Steady GLOBAL CAPITALIZATION RATES / PRIME YIELDS: 10 LOWEST CITIES MARKET (Ranked by Dec 2011) DEC 2011 JUNE 2011 DEC 2010 Taipei 2.60 2.80 2.90 Hong Kong 2.94 3.22 3.31 Vienna 3.50 3.50 3.50 London – West End 4.00 4.00 4.50 Zurich 4.10 4.10 4.10 Singapore 4.20 4.30 4.20 Geneva 4.25 4.00 4.00 Beijing 4.32 5.93 6.59 Paris 4.50 4.50 4.75 Munich 4.50 4.50 4.50 Tokyo 4.50 4.60 4.70 GLOBAL OFFICE OCCUPANCY COSTS: TOP 10 CITIES MARKET (Ranked by Dec 2011) DEC 2011 JUNE 2011 DEC 2010 Hong Kong 178.34 185.91 166.62 London – West End 120.31 124.50 108.28 Paris 90.26 101.13 92.31 Rio de Janeiro 78.98 85.70 79.89 Moscow 75.78 64.86 77.54 London – City 75.29 77.91 75.02 Perth 68.73 69.76 55.29 Singapore 65.81 69.21 57.80 Geneva 65.31 72.83 64.20 São Paulo 63.43 71.42 60.71 CBD CAP RATE (%) Latin America Boasts the Tightest Office Markets Some of the world’s lowest office vacancy rates are found in Latin American cities. Santiago, Chile; Rio de Janeiro, Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy rates below three percent, resulting in a market that strongly favors landlords, prompts new construction and might squeeze some tenants that desire to expand. For the most part, we expect the strength of these markets to persist. While decreases in European demand for its commodities will likely hurt Latin America, this will be tempered by continued demand from China. In São Paolo, heightened demand has spurred the highest rates of new development in the region, which will eventually put downward pressure on asking rents. Select Asia Pacific Markets See Big Vacancy Drops The global trend in dropping vacancy rates should be evi- dent in Asia and continue through 2012. Markets that saw a drop in vacancy in the second half of 2011 outnumbered by a two-to-one margin those where vacancy increased. Of the world’s most populous markets, those with the most significant declines in six-month vacancy rates were nearly all in the Asia Pacific region. Chengdu, propelled by its strong manufacturing sector, saw its vacancy rate drop by 7.8 percent in the period, and Shanghai saw a 3.2 percent drop in vacancy. Two other large Asian markets saw vacancy rates drop by 1.5 percent or more: Jakarta, which has also seen sustained growth in CBD rental rates and renewed global investor interest; and Singapore, where occupancies are expected to stabilize. Marquee Markets See Rent Decline While Hong Kong, London’s West End and Paris command the top three highest asking rents for Class A office space, each has shown apparent decline in rents between June and December of 2011, when quoted in U.S. dollars. Substantial declines, in fact: led by a $10.87 USD drop in Parisian Class A rents. But how significant are these figures? The change in London and Paris rents is due to the strengthening dollar relative to the euro and pound sterling. In local currency, prime rents in these markets are holding ground. Although smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) per square foot may be a more important indicator of things to come, as demand from the banking and financial sector continue to weaken. EMEA and Asia Pacific Lead Global Construction A significant percentage of the office space under construction is in Europe, the Middle East and Africa (EMEA), and much of that is occurring in Moscow and Dubai. While both of these markets should expect strong economic growth in 2012, the fact that Dubai—with a vacancy rate of 50 percent—is constructing at such a pace leads us to expect that supply will continue to outpace demand in that market. The other two top markets for office construction are in the Asia Pacific region. Guangzhou—China’s leading commercial port city—and Tokyo have 19.6 and 15.6 million square feet under construction respectively. Asian economic growth rates will remain strong in the coming months, with China and India leading the pack. Rents are on the rise in most cities in the region. However, dropping rents in Seoul and Hong Kong are a potential indicator of global economic uncertainty. In Tokyo, where new supply has been increasing for the past three years, we expect construction to peak and begin to decline in the coming year. CLASS A / NET RENT (USD/SQ FT)
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Colliers International Research has just released Global Office Highlights H2 2011 covering all global markets across Asia Pacific, EMEA (Europe Middle East and Africa), Latin America and North America. The biannual report from Colliers International consists of gross and net average rental rates (data as of December 31, 2011) of grade A office space as well as forecast for 2012 onwards. According to Colliers International’s research, global vacancy rates will continue to decrease due to the steady demand and low levels of construction particularly in North America and Europe. Another positive trend in many leading markets is the increased interest in occupiers towards higher quality office space or better locations when renewing their leases.
Transcript of Colliers Global Office Highlights Second Half 2011
HIGHLIGHTSGLOBAL Office
www.cOLLiers.cOm
second half 2011 | office
JAmes cOOK Director of Research | USA
Global Office Trend forecast•Global office vacancies will continue their decline, due to steady demand and low levels of new construction in North
America and Europe. •The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a
better location as their leases expire.•The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction
will be felt most profoundly in a handful of commercial property markets within the most troubled nations. Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption and increased vacancy as the region enters a mild recession.
Global Office Demand Growth Slow and Steady
GLOBAL cAPiTALiZATiON rATes /Prime YieLDs: 10 LOwesT ciTies
mArKeT (Ranked byDec 2011)
Dec 2011
JuNe 2011
Dec 2010
Taipei 2.60 2.80 2.90 Hong Kong 2.94 3.22 3.31 Vienna 3.50 3.50 3.50 London – West End 4.00 4.00 4.50 Zurich 4.10 4.10 4.10 Singapore 4.20 4.30 4.20 Geneva 4.25 4.00 4.00 Beijing 4.32 5.93 6.59Paris 4.50 4.50 4.75Munich 4.50 4.50 4.50Tokyo 4.50 4.60 4.70
GLOBAL Office OccuPANcY cOsTs:TOP 10 ciTies
mArKeT (Ranked byDec 2011)
Dec 2011
JuNe 2011
Dec 2010
Hong Kong 178.34 185.91 166.62 London – West End 120.31 124.50 108.28 Paris 90.26 101.13 92.31 Rio de Janeiro 78.98 85.70 79.89 Moscow 75.78 64.86 77.54 London – City 75.29 77.91 75.02 Perth 68.73 69.76 55.29 Singapore 65.81 69.21 57.80 Geneva 65.31 72.83 64.20 São Paulo 63.43 71.42 60.71
cBD cAP rATe (%)
Latin America Boasts the Tightest Office marketsSome of the world’s lowest office vacancy rates are found in Latin American cities. Santiago, Chile; Rio de Janeiro, Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy rates below three percent, resulting in a market that strongly favors landlords, prompts new construction and might squeeze some tenants that desire to expand. For the most part, we expect the strength of these markets to persist. While decreases in European demand for its commodities will likely hurt Latin America, this will be tempered by continued demand from China. In São Paolo, heightened demand has spurred the highest rates of new development in the region, which will eventually put downward pressure on asking rents.
select Asia Pacific markets see Big Vacancy DropsThe global trend in dropping vacancy rates should be evi-dent in Asia and continue through 2012. Markets that saw a drop in vacancy in the second half of 2011 outnumbered by a two-to-one margin those where vacancy increased.
Of the world’s most populous markets, those with the most significant declines in six-month vacancy rates were nearly all in the Asia Pacific region. Chengdu, propelled by its strong manufacturing sector, saw its vacancy rate drop by 7.8 percent in the period, and Shanghai saw a 3.2 percent drop in vacancy.
Two other large Asian markets saw vacancy rates drop by 1.5 percent or more: Jakarta, which has also seen sustained growth in CBD rental rates and renewed global investor interest; and Singapore, where occupancies are expected to stabilize.
marquee markets see rent DeclineWhile Hong Kong, London’s West End and Paris command the top three highest asking rents for Class A office space,
each has shown apparent decline in rents between June and December of 2011, when quoted in U.S. dollars. Substantial declines, in fact: led by a $10.87 USD drop in Parisian Class A rents.
But how significant are these figures? The change in London and Paris rents is due to the strengthening dollar relative to the euro and pound sterling. In local currency, prime rents in these markets are holding ground. Although smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) per square foot may be a more important indicator of things to come, as demand from the banking and financial sector continue to weaken.
emeA and Asia Pacific Lead Global constructionA significant percentage of the office space under construction is in Europe, the Middle East and Africa (EMEA), and much of that is occurring in Moscow and Dubai. While both of these markets should expect strong economic growth in 2012, the fact that Dubai—with a vacancy rate of 50 percent—is constructing at such a pace leads us to expect that supply will continue to outpace demand in that market.
The other two top markets for office construction are in the Asia Pacific region. Guangzhou—China’s leading commercial port city—and Tokyo have 19.6 and 15.6 million square feet under construction respectively. Asian economic growth rates will remain strong in the coming months, with China and India leading the pack. Rents are on the rise in most cities in the region. However, dropping rents in Seoul and Hong Kong are a potential indicator of global economic uncertainty. In Tokyo, where new supply has been increasing for the past three years, we expect construction to peak and begin to decline in the coming year.
cLAss A / NeT reNT (usD/sQ fT)
cOLLiers iNTerNATiONAL | P. 2
highlights | second half 2011 | office | GloBal
LOcAL meAsure / curreNcY cBD reNTs
mArKeT cOuNTrY uNiTQuOTeD
curreNcYTime
PeriOD
exchANGerATe (usD)Dec 31, 2011
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AVerAGecLAss A
GrOss reNT
AVerAGecLAss A NeT reNT
AVerAGecLAss A GrOss reNT
cBD cAP rATe
/ PrimeYieLD (%)
AsiA PAcific
Adelaide Australia SM AUD Year 0.98 350.00 460.00 33.18 43.61 7.63
Brisbane Australia SM AUD Year 0.98 615.00 745.00 58.30 70.62 7.50Canberra Australia SM AUD Year 0.98 367.00 445.00 34.79 42.19 9.98Melbourne Australia SM AUD Year 0.98 498.00 613.00 47.21 58.11 7.00Perth Australia SM AUD Year 0.98 725.00 880.00 68.73 83.42 8.00Sydney Australia SM AUD Year 0.98 631.00 762.00 59.82 72.24 6.95Beijing China SM CNY Month 6.29 313.69 343.69 55.54 60.85 4.32Chengdu China SM CNY Month 6.29 143.76 162.51 25.45 28.77 7.20Guangzhou China SM CNY Month 6.29 158.82 215.80 28.12 38.21 6.25Hong Kong China SF HKD Month 7.77 115.45 133.39 178.34 206.06 2.94Shanghai China SM CNY Month 6.29 249.89 249.89 44.27 44.27 6.10Bangalore India SF INR Month 53.06 55.00 65.00 12.44 14.70 9.90Chennai India SF INR Month 53.06 60.00 70.00 13.57 15.83 10.00Delhi India SF INR Month 53.06 222.00 261.00 50.21 59.03 9.00Mumbai India SF INR Month 53.06 191.00 225.00 43.20 50.89 10.56 Jakarta Indonesia SM IDR Month 9,070.00 132,753.00 188,164.00 16.31 23.12 8.10 Tokyo Japan SM JPY Year 77.12 91,476.00 110.17 4.50 Auckland New Zealand SM NZD Year 1.29 307.00 434.00 22.17 31.34 8.66 Wellington New Zealand SM NZD Year 1.29 343.00 439.00 24.77 31.70 8.30 Makati Philippines SM PHP Month 43.80 850.00 21.63 9.40 Singapore Singapore SF SGD Month 1.30 7.11 8.93 65.81 82.65 4.20 Seoul South Korea SM KRW Month 1,158.10 22,883.00 26,867.00 22.02 25.85 5.80 Taipei Taiwan PING TWD Month 30.27 2,450.00 2,940.00 26.98 32.38 2.60 Bangkok Thailand SM THB Month 31.55 665.00 712.00 23.49 25.15 eurOPe, miDDLe eAsT AND AfricA (emeA)Vienna Austria SM EUR Month 0.77 18.00 26.00 3.50 Antwerp Belgium SM EUR Month 0.77 10.40 15.02 7.25 Sofia* Bulgaria SM EUR Month 0.77 9.00 13.00 9.00 Zagreb* Croatia SM EUR Month 0.77 12.50 18.05 9.25 Prague* Czech Republic SM EUR Month 0.77 17.00 24.55 6.20 Copenhagen Denmark SM DKK Month 5.73 108.30 21.06 5.00 Cairo Egypt SM USD Month 1.00 21.80 24.30 9.00 Tallinn Estonia SM EUR Month 0.77 13.30 19.21 7.50 Helsinki Finland SM EUR Month 0.77 22.00 31.77 5.75 Bordeaux France SM EUR Month 0.77 13.50 19.50 6.50 Lyon France SM EUR Month 0.77 18.80 27.15 6.00 Montepelier France SM EUR Month 0.77 12.50 18.05 7.00 Paris France SM EUR Month 0.77 62.50 90.26 4.50 Berlin Germany SM EUR Month 0.77 19.00 27.44 5.00 Düsseldorf Germany SM EUR Month 0.77 20.00 28.88 5.25 Frankfurt Germany SM EUR Month 0.77 30.00 43.33 5.20 Hamburg Germany SM EUR Month 0.77 22.00 31.77 4.70 Munich Germany SM EUR Month 0.77 27.00 38.99 4.50 Stuttgart Germany SM EUR Month 0.77 14.20 20.51 5.40 Athens* Greece SM EUR Month 0.77 14.00 20.22 7.50 Budapest* Hungary SM EUR Month 0.77 12.50 18.05 7.75 Dublin Ireland SM EUR Month 0.77 20.00 28.88 7.50 Milan Italy SM EUR Month 0.77 40.00 57.77 5.50 Rome Italy SM EUR Month 0.77 29.00 41.88 6.00
meAsurecBD reNT
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* rents reflect combined A and B class.
highlights | second half 2011 | office | GloBal
cOLLiers iNTerNATiONAL | P. 3 cOLLiers iNTerNATiONAL | P. 2
Riga Latvia SM EUR Month 0.77 12.00 17.33 8.00
Vilnius Lithuania SM EUR Month 0.77 13.10 18.92 8.50
Amsterdam Netherlands SM EUR Month 0.77 17.10 24.70 6.50
Oslo Norway SM NOK Year 5.98 3,250.00 50.49 5.50
Warsaw* Poland SM EUR Month 0.77 22.60 32.64 6.25
Lisbon Portugal SM EUR Month 0.77 15.00 21.66 7.50
Bucharest* Romania SM EUR Month 0.77 15.00 21.66 8.25
Moscow Russia SM USD Month 1.00 68.00 75.78 9.50
Saint Petersburg Russia SM USD Month 1.00 30.70 34.21 11.00
Riyadh Saudi Arabia SM SAR Year 3.75 1,200.00 29.72 10.00
Belgrade* Serbia SM EUR Month 0.77 13.00 18.77 9.00
Bratislava* Slovakia SM EUR Month 0.77 11.45 16.54 7.50
Madrid Spain SM EUR Month 0.77 24.00 34.66 5.75
Stockholm Sweden SM SEK Year 6.91 4,500.00 60.52 5.00
Geneva Switzerland SM CHF Month 0.94 55.00 65.31 4.25
Zurich Switzerland SM CHF Month 0.94 40.00 47.50 4.10
Istanbul Turkey SM USD Month 1.00 31.05 34.60 7.00
Kyiv* Ukraine SM USD Month 1.00 33.00 36.78 11.00
Abu Dhabi United Arab Emirates SM USD Month 1.00 33.10 36.89 10.00
Dubai United Arab Emirates SM USD Month 1.00 35.79 39.89 10.00
Belfast United Kingdom SF GBP Year 0.64 12.50 19.40 6.25
Birmingham United Kingdom SF GBP Year 0.64 21.00 32.60 6.00
Bristol United Kingdom SF GBP Year 0.64 24.00 37.26 6.25
Edinburgh United Kingdom SF GBP Year 0.64 21.00 32.60 6.00
Glasgow United Kingdom SF GBP Year 0.64 23.00 35.70 6.00
London – City United Kingdom SF GBP Year 0.64 48.50 75.29 5.25
London – West End United Kingdom SF GBP Year 0.64 77.50 120.31 4.00
Manchester United Kingdom SF GBP Year 0.64 22.00 34.15 6.00
LATiN AmericA
Buenos Aires Argentina SM USD Month 1.00 28.60 32.00 31.87 35.66 9.50
Rio de Janeiro Brazil SM BRL Month 1.86 132.00 152.50 78.98 91.25 10.50
São Paulo Brazil SM BRL Month 1.86 106.00 131.00 63.43 78.39
Santiago Chile SM USD Month 1.00 23.51 27.97 26.20 31.17 8.31
Bogotá Colombia SM USD Month 1.00 27.40 30.30 30.54 33.77 8.30
San José Costa Rica SM USD Month 1.00 17.30 19.21 19.28 21.41 9.54
Mexico City Mexico SM USD Month 1.00 27.00 30.00 30.09 33.43 9.00
Panama Panama SM USD Year 1.00 20.00 24.00 1.86 2.23
Lima Peru SM USD Month 1.00 18.83 24.58 20.99 27.39 12.50
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eurOPe, miDDLe eAsT AND AfricA (emeA) continued
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* rents reflect combined A and B class.
cOLLiers iNTerNATiONAL | P. 4
highlights | second half 2011 | office | GloBal
NOrTh AmericA
Calgary Canada SF CAD Year 1.02 36.00 55.38 35.24 54.21 6.00
Edmonton Canada SF CAD Year 1.02 22.33 39.90 21.86 39.06 6.44
Guelph Canada SF CAD Year 1.02 16.00 27.36 15.66 26.78 7.25
Halifax Canada SF CAD Year 1.02 17.05 31.82 16.69 31.15
Montréal Canada SF CAD Year 1.02 23.24 42.00 22.75 41.11 6.75
Ottawa Canada SF CAD Year 1.02 27.07 48.36 26.50 47.34 7.25
Regina Canada SF CAD Year 1.02 22.00 37.00 21.53 36.22 7.00
Saskatoon Canada SF CAD Year 1.02 25.00 37.00 24.47 36.22 7.00
Toronto Canada SF CAD Year 1.02 53.31 52.18 5.90
Vancouver Canada SF CAD Year 1.02 34.60 54.50 33.87 53.35 5.50
Victoria Canada SF CAD Year 1.02 23.78 37.78 23.28 36.98 6.25
Waterloo Region, ON Canada SF CAD Year 1.02 13.99 25.36 13.69 24.82 7.25
Atlanta United States SF USD Year 1.00 11.23 22.73 11.23 22.73 8.60
Bakersfield United States USD SF Year 1.00 9.31 17.40 9.31 17.40
Baltimore United States USD SF Year 1.00 11.41 22.41 11.41 22.41
Boise United States USD SF Year 1.00 12.62 18.62 12.62 18.62
Boston United States USD SF Year 1.00 27.75 47.75 27.75 47.75 5.30
Charleston United States USD SF Year 1.00 19.14 29.14 19.14 29.14 8.00
Charlotte United States USD SF Year 1.00 24.27 24.27
Chicago United States USD SF Year 1.00 14.50 35.00 14.50 35.00 6.50
Cincinnati United States USD SF Year 1.00 13.87 23.37 13.87 23.37 9.75
Cleveland United States USD SF Year 1.00 20.68 20.68
Columbia United States USD SF Year 1.00 11.75 19.15 11.75 19.15
Columbus United States USD SF Year 1.00 11.07 18.80 11.07 18.80
Dallas/Fort Worth United States USD SF Year 1.00 15.00 25.00 15.00 25.00 7.80
Denver United States USD SF Year 1.00 12.19 28.04 12.19 28.04 6.00
Detroit United States USD SF Year 1.00 22.46 22.46
Fresno United States USD SF Year 1.00 17.90 26.00 17.90 26.00 9.00
Ft. Lauderdale-Broward United States USD SF Year 1.00 17.76 31.26 17.76 31.26 6.30
Grand Rapids United States USD SF Year 1.00 13.02 20.97 13.02 20.97 9.00
Greenville United States USD SF Year 1.00 10.48 20.63 10.48 20.63
Hartford United States USD SF Year 1.00 10.26 22.76 10.26 22.76 9.00
Honolulu United States USD SF Year 1.00 18.60 34.80 18.60 34.80
Houston United States USD SF Year 1.00 24.92 35.29 24.92 35.29 6.60
Indianapolis United States USD SF Year 1.00 12.27 19.27 12.27 19.27 8.50
Jacksonville United States USD SF Year 1.00 9.22 19.12 9.22 19.12
Kansas City United States USD SF Year 1.00 11.57 19.57 11.57 19.57
Las Vegas United States USD SF Year 1.00 20.08 31.08 20.08 31.08
LOcAL meAsure / curreNcY cBD reNTs
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highlights | second half 2011 | office | GloBal
cOLLiers iNTerNATiONAL | P. 5 cOLLiers iNTerNATiONAL | P. 4
LOcAL meAsure / curreNcY cBD reNTs
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/ Prime YieLD(%)
NOrTh AmericA continued
Little Rock United States SF USD Year 1.00 8.35 15.60 8.35 15.60 9.50
Los Angeles United States SF USD Year 1.00 22.52 38.52 22.52 38.52 7.00
Louisville United States SF USD Year 1.00 20.34 20.34
Memphis United States SF USD Year 1.00 8.40 16.65 8.40 16.65
Miami-Dade United States SF USD Year 1.00 25.75 41.25 25.75 41.25
Minneapolis United States SF USD Year 1.00 14.33 14.33
Nashville United States SF USD Year 1.00 22.57 22.57
New York – Downtown Manhattan
United States SF USD Year 1.00 25.17 48.17 25.17 48.17 6.00
New York – Midtown Manhattan
United States SF USD Year 1.00 35.72 67.72 35.72 67.72 5.50
New York – Midtown S. Manhattan
United States SF USD Year 1.00 28.83 48.83 28.83 48.83 5.25
Oakland United States SF USD Year 1.00 18.18 31.68 18.18 31.68 8.00
Oklahoma City United States SF USD Year 1.00 10.18 17.18 10.18 17.18
Omaha United States SF USD Year 1.00 10.29 19.29 10.29 19.29
Orlando United States SF USD Year 1.00 13.06 24.06 13.06 24.06 8.80
Philadelphia United States SF USD Year 1.00 14.89 26.41 14.89 26.41 8.00
Phoenix United States SF USD Year 1.00 14.87 27.87 14.87 27.87
Pittsburgh United States SF USD Year 1.00 17.00 27.50 17.00 27.50 8.25
Pleasanton/Walnut Creek United States SF USD Year 1.00 16.08 27.48 27.48 8.00
Portland United States SF USD Year 1.00 15.20 25.20 15.20 25.20
Raleigh/Durham/Chapel Hill United States SF USD Year 1.00 15.56 22.56 15.56 22.56 8.00
Reno United States SF USD Year 1.00 23.04 23.04
Sacramento United States SF USD Year 1.00 32.34 32.34
San Diego United States SF USD Year 1.00 13.46 28.32 13.46 28.32
San Francisco United States SF USD Year 1.00 41.12 41.12 5.50
San Jose/Silicon Valley United States SF USD Year 1.00 17.54 32.04 17.54 32.04
Savannah United States SF USD Year 1.00 12.20 19.20 12.20 19.20 9.50
Seattle/Puget Sound United States SF USD Year 1.00 19.64 30.11 19.64 30.11 7.63
St. Louis United States SF USD Year 1.00 7.28 17.78 7.28 17.78 9.25
St. Paul, MN United States SF USD Year 1.00 11.33 11.33
Stamford United States SF USD Year 1.00 28.16 41.16 28.16 41.16 8.00
Stockton/San Joaquin County United States SF USD Year 1.00 17.52 21.12 17.52 21.12 8.30
Tampa United States SF USD Year 1.00 13.61 22.61 13.61 22.61 8.00
Washington, DC United States SF USD Year 1.00 30.85 52.85 30.85 52.85 5.75
West Palm Beach/Palm Beach County
United States SF USD Year 1.00 21.81 36.81 21.81 36.81 9.12
White Plains United States SF USD Year 1.00 19.28 32.28 19.28 32.28 8.00
meAsurecBD reNT
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highlights | second half 2011 | office | GloBal
www.cOLLiers.cOm
class A Gross rent – The average rent quoted per square foot per annum for Class A office building within the CBD plus additional costs such as property taxes, service charges or operating expenses.
class A Net rent – The average rent quoted per square foot per annum for a Class A office building within the CBD.
class A (Prime) Buildings – Most prestigious building competing for premier office users with rents above average for the area. Buildings have high quality standard for finishes, state-of-the-art systems, exceptional accessibility and a definite market presence.
Characterized by: Prime central locations; first-class tenant improvements; on-site parking; state of the art elevators and HVAC systems; concrete and steel construction; contemporary design and architecture; high quality of upkeep and maintenance; ability to command a premium rent within the relevant market. The Class A building designation implies that the size of the building is “significant” in accordance with the market.
Quoted currency – The currency quoted locally in all lease transactions. Not necessarily national currency. (Note: Chile utilizes Unidad de Fomento, which equals USD 24.30)
AmericAsJames [email protected]
Jeff simonsonUSA [email protected]
eurOPe, miDDLe eAsT AND AfricAThomas [email protected]
mark charltonUnited [email protected]
Damian harrington Central and Eastern [email protected]
renaud roger [email protected]
AsiA PAcificsimon [email protected]
Amit OberoiIndia [email protected]
Nerida conisbeeAustralia/New [email protected]
Yumiko [email protected]
GLOBAL reseArch cONTAcTs
GLOssArY
cOLLiers iNTerNATiONAL
601 Union Street, Suite 4800Seattle, WA 98101 USATeL +1 206 695 4200
512 offices in 61 countries on 6 continentsUnited States: 125Canada: 38Latin America: 18Asia Pacific: 214EMEA: 117
• $1.5 billion in annual revenue
• 979 million square feet under management
• over 12,500 professionals
Copyright © 2012 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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Time Period – The standard way in which leases are quoted. Usually on a per month or per year basis.
existing inventory – Existing office floor space (Classes A, B and C) within each city’s CBD (central business district).
under construction – The total office floor space (Classes A, B and C) within each city’s CBD (central business district) which is under construction, but not yet completed, giving an indication of the development pipeline for each market. This includes both available and pre-let floor space.
unit – The normal convention locally in which area is measured. Usually on a per square foot or per square meter basis.
Vacancy rate (%) – The percentage of the inventory (total completed office floor space, Classes A, B and C, within the CBD) which is unoccupied.
Yield (%) – The average prime yield (or capitalization rate), expressed as a percentage, for a Class A office building within the CBD.
Note: sf = square feet sm = square meter
Psf = per square foot Psm = per square meter cBD = central business district
