Global prime office rents rise for second quarter

Net-effective rents for prime office space globally rose by 0.3% over the second quarter, a second consecutive quarterly increase after a 1.1% lift in Q1. Savills said the increase “demonstrates that tenant demand is still present and landlords are cautiously optimistic in some markets”. The largest rise was seen in Ho Chi Minh City in Vietnam, up by 4.6% in Q2 to $80.75 (about £63). Next was Paris (up 3.7% at $119.85) and Dubai (up 2.7% to $120.72). In London, West End and City rents were flat at $259.88 and $167.51 respectively. The West End is the most expensive market in the 30 tracked by Savills. Cities in which rents fell during the quarter include Frankfurt (-4.8% to $61.25) and Berlin (-3.4% to $64.83). Christina Sigliano, head of EMEA occupier services at Savills, said: “Globally, occupiers still demonstrate a strong preference for prime space, and rents are ticking up, but these increases are masked somewhat by landlords generally keeping concessions relatively high in order to attract the best tenants leading to overall moderate rises in net effective costs.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews