Real estate investors have received a welcome boost with the news that prime office rental levels stabilised in the majority of European markets during the third quarter of 2009.
Real estate investors have received a welcome boost with the news that prime office rental levels stabilised in the majority of European markets during the third quarter of 2009.
The European Prime Office rental Index produced by Jones Lang LaSalle - based on a weighted performance of 24 markets - decreased by only 0.8% over the quarter as headline rents remained at Q2 levels in 16 markets including London and Paris.
JLL's office clock for the third quarter indicates rents are also bottoming out in Moscow, Kiev, Lyon, Warsaw and Oslo. Most European markets measured by JLL are hovering around the 3pm mark, the border between rents falling and rents bottoming out. But the good news is tempered by several factors.
An important feature in the markets where rental levels are stabilising is that landlords are offering 'increasing incentives' to attract tenants. And prime rents across Europe are now 16% below the level recorded 12 months ago - a level of decline never recorded before.
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