Six of the 10 fastest-growing global office markets are in EMEA, according to CBRE's semi-annual Global Prime Office Rents survey.
Stockholm saw the strongest prime office rent growth in EMEA at 18.2%, tied with Bangkok for the largest increase among the 121 markets surveyed. Belfast (14.3%) and Amsterdam (12.5%) also saw strong prime rent growth, driven by demand from the banking and finance & professional services sectors and business services and technology, media & telecommunications industries, respectively.
Robust economic and employment growth, as well as constrained supply, contributed to the upward trend, commented Richard Barkham, global chief economist, CBRE. 'Prime rents showed the strongest growth in information technology and media hubs, including Stockholm, Amsterdam, Tel Aviv, New York and Seattle. Co-working operators have been active in acquiring new space, particularly targeting tenants in tech industries.'
According to the data, Hong Kong, at $269 (€226) per ft2, is once again the world’s highest-priced office market, with London's West End in sixth place as EMEA's most expensive location at $136 (€114) per ft2.
Global prime office rents - reflecting rent, excluding local taxes and service charges - rose 2% year-on-year across the board, but climbed just 1.3% in EMEA. The survey tracked rents for prime office space in 121 markets around the globe. EMEA accounted for 18 of the top 50 most expensive markets, 20 were in Asia Pacific and 12 were in the Americas.
Only five EMEA markets recorded a year-over-year decline in prime office rents, including London’s West End, where weaker employment growth and slower demand from hedge funds and the private equity sector have reduced demand for new space.
The study found that markets in the Americas and EMEA showed the most consistent growth in rent.
