The Leader - March/April 2009 - (Page 84) R EAL ESTATE D A S H BOARD 4th Quarter 2008 Leasi ng Rates* Class-A Office Industrial North America Chicago Los Angeles New York Washington D.C Europe Amsterdam Frankfurt London Moscow Paris Asia Beijing Hong Kong Mumbai Shanghai Singapore Tokyo Australia/ New Zealand Melbourne Sydney Auckland 38.90 39.35 86.80 54.33 47.90 67.70 151.80 170.00 115.50 40.20 175.00 111.50 47.40 143.20 150.80 4.81 7.63 8.75 9.10 98 104 186 130 73 n/a n/a n/a n/a n/a n/a Vacancy Rates Class-A Office Industrial 13.1% 13.8% 6.6% 8.4% 17.9% 13.3% 6.62% 12.91% 3.88% 13.2% 2.7% 20.7% 15.3% 4.4% 5.2% 9.0% 2.0% 2.7% 9.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Net Absorption Rates Class-A Office Industrial (194,094) (336,231) 1,372,229 (32,339) 280,000 501,000 1,024,712 1,300,000 2,359,500 734,910 172,452 325,984 336,729 938 N/A (454,599) 526,128 (266,061) 347,309 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 29.70 60.40 27.50 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Source: U.S. data provided by Grubb & Ellis, other data provided by DTZ. (USD per sq. ft.) An expansion in the Russian commodities sector supported demand for office space in Moscow up until the first half of 2008. However, occupier demand started to weaken in Q3 2008, as companies either cancelled or postponed any expansion plans, bringing an end to the exceptional rental growth seen in the past few years. Of the markets reported, availability remains lowest in Paris’s CBD, where occupier demand continued unabated in the first half of the year and even into Q3, when several large lettings were transacted. By contrast, in London, the collapse in banking sector confidence led to significant contraction in occupier demand and take-up in 2008 was well below the levels recorded in 2007. Although Amsterdam records the highest availability ratio, at 17.9 percent, the majority of this available stock comprises obsolete space that no longer meets occupier requirements. Looking to Asia Pacific, prime office rents in Tokyo and Hong Kong remained relatively stable in the first half of 2008 due to the low availability of office space. However, as the financial crisis has deepened, confidence has eroded and companies have started to look to downsizing and postponing any expansion plans. In Mumbai, a slowdown in occupier demand, combined with a high amount new supply coming onto the market, has resulted in a significant increase in availability. A substantial amount of new development has come on line in the Beijing office market in the last four years, which helps to explain the high vacancy level of 13.2 percent in the city. —DTZ 2 0 0 9 THE LE ADE R 84 MARCH / APRIL
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