Frankfurt, Geneva, Kiev, Munich, Prague, Vienna

European rental cyclesOffices

Logistics

Shopping centres

Barcelona, Bucharest, Lisbon, Madrid

The Knight Frank wave depicts the current position of selected European centres with respect to their local prime rental cycle. As demand swells relative to supply and rents rise, centres move towards the crest of the wave. As demand ebbs and rental levels weaken, centres start to move down the wave towards the trough. Some markets will ride the wave more quickly than others. Similarly, some markets will tread water for periods of time or move only gently through the wave.

Barcelona, Budapest, Madrid

Barcelona, Bucharest, Budapest, Dublin, Lisbon, Madrid

Amsterdam, Copenhagen, Edinburgh, Geneva, London, Milan, Paris, Prague, Stockholm, Vienna

Amsterdam, Budapest, Copenhagen, Dublin, Edinburgh, Milan

Brussels, Bucharest, Copenhagen, Dublin, Lisbon

London (City), London (West End)

Brussels, Stockholm, Warsaw

Paris, Moscow

Frankfurt, Kiev, Munich, Prague

WarsawMoscow

Brussels, Frankfurt, Kiev, Munich

WarsawMoscow

Amsterdam, Edinburgh, Geneva, London, Milan, Paris, Stockholm, Vienna

research

Winter 2010/11

europeanMarket Indicators

www.KnightFrank.comKnight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.

International Research Matthew Colbourne

Senior Analyst

+44 (0)20 7861 1238

matthew.colbourne@knightfrank.com

European Investment Team Andrew Sim

Partner, Head of European Investment

+44 (0)20 7861 1193

andrew.sim@knightfrank.com

European Valuations Team Nick Powlesland Partner, Head of European Valuations

+44 (0)20 7861 1283

nick.powlesland@knightfrank.com

Market monitor – Winter 2010/11

Offices Logistics Retail (shopping centres)City Prime rents Prime yields Prime rents Prime yields Prime rents Prime yields (€/sq m/yr) (%) (€/sq m/yr) (%) (€/sq m/yr) (%)Amsterdam 325 4 6.00 4 85 4 7.25 4 1,200 4 5.75 4Barcelona 234 6 6.00 4 72 6 7.75 4 528 6 6.75 4Brussels 275 4 6.00 4 45 4 7.25 4 1,250 4 5.75 4Bucharest 192 4 8.50 4 48 4 10.50 4 810 4 9.00 4Budapest 240 4 7.50 4 54 4 9.00 4 900 4 7.25 4Copenhagen 228 4 5.25 4 67 4 7.25 4 645 4 6.00 4Dublin 376 4 7.25 4 75 6 9.00 4 4,000* 6 8.00 4Edinburgh 346 4 6.00 4 90 4 6.75 4 2,242* 4 6.00 4Frankfurt 408 4 5.00 4 70 4 7.00 4 1,800* 4 5.25 4Geneva 613 4 5.00 4 132 4 6.75 4 766 4 5.50 4Kiev 390 4 12.00 4 68 4 13.00 4 1,170 5 12.00 5Lisbon 222 4 7.00 4 60 4 7.75 4 900 4 7.50 4London 1,089(WE)/705(C) 5 4.00(WE)/5.25(C) 4 154 4 6.25 4 5,356* 4 5.50 4Madrid 348 6 5.75 4 72 6 7.75 4 540 6 6.75 4Milan 480 4 5.75 6 50 4 7.75 4 650 4 6.25 4Moscow 765 4 9.00 4 88 5 12.50 4 1,837 4 10.50 4Munich 348 4 4.75 4 78 4 7.00 4 1,800* 4 5.25 4Paris 750 5 4.75 6 52 4 7.00 4 2,000 6 5.00 4Prague 246 4 6.75 6 45 4 8.50 6 840 6 6.75 4Stockholm 458 5 5.00 6 95 4 7.00 4 800 4 5.75 4Vienna 288 4 5.25 4 72 4 7.50 4 1,020 4 6.00 4Warsaw 288 4 6.75 4 72 4 8.00 4 1,020 4 6.75 4

Indicative prime yields, as quoted locally, based upon a hypothetical Grade A unit. Office rents are for prime city area Grade A space, 2,000 sq m. Shopping Centre rents are based on prime covered shopping malls, quoted on best position, 100 sq m units. Logistics rents are for prime industrial space of units over 5,000 sq m. The data above is provided for general reference purposes only. Local market conditions will vary. *Zoned/weighted figure. Arrows provide a broad indication of recent movements and the short-term outlook for prime rents and yields. London office data is quoted for the West End (WE) and City (C) submarkets.

Winter 2010/11europeanMarket Indicators

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Figure 1

European weighted average prime office rent€ per sq m per annum

Figure 2

European weighted average prime office yield%

Source: Knight Frank Source: Knight FrankFigures 1 & 2 show averages of prime office rents and yields in the cities covered by this report, with markets weighted according to size and market maturity.

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