Serious decline of office rentals in Milan, Rome and Paris

Over the last semester the rentals of A1 office space in Paris, Milan, Rome and Toronto have declined with more than 10%. This can be concluded from a research effectuated by real estate broker CB Richard Ellis. The rents in Amsterdam have shown a minor decline. The London West End district is the most expensive office area. Over the period January-June 2004 rents in London West End raised 19%.

The most important decline of top rentals was noticed in Caracas, capital of Venezuela. Rents in Caracas declined with 30%, due to the miserable economic situation in the country. Apart from London West End, raises of rents of over 10% were noticed in Hongkong and New Delhi. In London West End 1 m² of office space now costs € 1.754,-. The London City figures at second place, with rentals of approx. € 1061,-/m² of office space.

According to CB Richard Ellis, who made an international top-50 ranking of office rentals, the rents of American office space have become relatively cheap, seen in the international context. This is due to the decrease in value of the dollar and the IT-sector crash. Three years ago 10 American office locations appeared in the CB Richard Ellis top-50 ranking, while this year just four office locations appear on the list (New York Midtown, New York Downtown, Washington DC and Boston). Two Shanghai business locations, Pudong and Puxi, have entered the list, with rentals of approx. € 297,-.

Related News