King Sturge has presented its Global Industrial and Office Rents Survey Q2 2007. During the first half of 2007 demand for global industrial property remains robust with 68% of the locations surveyed reporting stable or rising occupation costs. Global office markets are experiencing positive demand, with 83% of the respondents to the Global Industrial and Office Rents survey reporting stable or rising rental values over the first half of 2007.
Highlights of the global industrial markets:
- In Europe, Nordic industrial locations are experiencing strong demand on the back of robust economic growth, with Stockholm in particular reportedly doing well.
- In emerging industrial markets across Central and Eastern Europe, demand for industrial space from occupiers is solid, but the ability to construct warehousing quickly means that vacancy is nevertheless beginning to rise, putting downward pressure on rental values.
- Elsewhere in the world, there is healthy demand from owneroccupiers in Auckland, New Zealand as they compete for new developments.
- In the Americas, a very strong industrial market in Vancouver, Canada, has pushed vacancy rates down to 1-2% - the lowest in North America.
Highlights of the global office markets:
- Global office markets are experiencing positive demand, with 83% of the respondents to the Global Industrial and Offi ce Rents survey reporting stable or rising rental values over the first half of 2007.
- In Europe; London, Paris, Madrid and Dublin continue to see office occupation costs rise, benefiting from growth in financial services and related sectors.
- In Asia, locations such as Singapore are experiencing rising office occupation costs as a result of buoyant economic growth and demand from office occupiers.
- Strong occupier demand across Australia's cities is putting upward pressure on rental growth.
- In North America, Canadian office markets are performing well with vacancy rates pushed to historic lows.
- In the USA office markets continue to be active despite weaker economic growth.
Click here to read the full report.
Source: King Sturge