Categorized | Commercial

Commercial Office Rent Prices Grow at Double the Global Rate

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The commercial real estate market across the Asia-Pacific continues to experience very strong rent growth. Rents in the region jumped more than ten percent in the past year. That growth put the region at roughly double the pace of the rest of the world, as the global rate for rent growth is just over five percent from last year.

The three cities pacing the tremendous growth in rental rates are Shanghai in China, Perth in Australia, and Bangalore in India. Each of those three cities has a very highly successful specialized commercial market. Shanghai’s financial market is booming, and Bangalore has become a technology hot spot. Perth is one of world’s biggest mining locations.

The rent price growth of the United States and Europe is far behind not only that of the Asian-Pacific region, but also the growth of the rest of the world. The United States, and the rest of the Americas experienced just over a two percent increase in rent growth. The rent growth in Europe was just over four percent.

Clearly the European debt crisis, and the uncertainty of the United States job market are both hindering their respective markets more than originally thought. Both regions now represent a risk that many investors are simply not willing to take.

There are some areas in the United States that remain the exception to the overall nation’s rental growth performance. Silicon Valley actually experienced that largest growth in the world, as commercial office space saw rental prices grow almost sixty percent.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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