Il Report di CB Richard Ellis - EMEA - sull'Offices Market nel terzo trimestre 2006
PRIME OFFICE YIELDS RECORD THE SHARP SLOWDOWN IN THE RATE OF COMPRESSION IN Q3 2006
London, November 10th 2006 – According to CB Richard Ellis’ EMEA Offices Market View for the third quarter of 2006 the fall in yields slowed down across Europe as opposed to the previous quarters. The CB Richard Ellis EU-15 Average Prime Office Yield fell by just 2 basis points quarter-on-quarter to 5.03% and in the majority of European markets prime office yields have remained stable. By contrast, the first half of the year saw the average prime yield fall by 25 basis points.
Michael Haddock, Director of EMEA Research at CB Richard Ellis, comments “The slowdown in the fall in yields has a number of possible explanations. The greatest effect has probably been increases in interest rates and thus the cost of finance. In the context of increasing interest rates, there is also growing concern over whether current prices will be maintained over the long-term.”
Anna Starczewska, Senior Analyst at CB Richard Ellis, added “Looking forward, prime office yields are likely to continue to fall slowly in the short term due to the weight of money still chasing real estate. However, the recent increases in interest rates mean that the justification for further sharp falls in yields is limited.”
The third quarter of the year also saw further increases in demand in the office occupier markets. In Q3 2006 overall take-up of office space in fifteen of the largest cities in the EU-15 showed a 17% year-on-year increase. This healthy demand for office space was reflected in falling vacancies and rental growth in many markets.
The shift in the supply-demand balance is influencing rental values. Increases in the prime rent were seen in a growing number of markets in Q3, indicating that the recovery is becoming much more broadly based across Europe than was the case six month ago.