Global office rents starting to recover -CBRE

* Office rents grow faster in London, Hong Kong

* Rental declines easing in Washington DC, Mexico City

* Europe comm. property sales to exceed 100 bln euros

LONDON, May 19 (BestGrowthStock) – A tentative recovery in office
rents is emerging globally helped by improved economic activity,
with rental growth starting to speed up in the first quarter in
the major financial markets of London and Hong Kong.

London’s West End and Hong Kong joined London City in the
first quarter of 2010 as the first markets to begin to see rents
recover, with rental declines also starting to level off in
Sydney and Shanghai, CB Richard Ellis (CBG.N: ) said on Wednesday.

Increased demand for space, together with more relocation
activity, has also slowed rental declines in the majority of
global office markets, including Washington D.C. and Mexico
City, the property consultancy said in a report.

“Relocations continue to be the main driver of activity, but
there are also signs of expansion activity in a few markets,
including Paris and Sydney,” Raymond Torto, CBRE’s Global Chief
Economist, said.

CBRE said the global economic recovery, characterised by
stronger growth in emerging markets such as India and China
rather than in developed markets such as the US, UK and Japan,
is being reflected in property markets around the world.

Office rents are at the bottom of the cycle, or starting to
grow, in many emerging Asian markets such as Mumbai, New Delhi
and Beijing, as well as in major Latin American cities, it said.

The recovery is so far largely constrained to higher grade,
prime offices however, as occupiers upgrade and leave older
properties vacant, and it may take significantly longer for
rents across all submarkets to recover, CBRE said.

In a separate report, the consultancy predicted European
commercial real estate investment sales will reach over 100
billion euros ($124 billion) in 2010, up from 73 billion last
year, boosted by investor demand for prime properties.

Stock Market

(Reporting by Daryl Loo; Editing by Jon Loades-Carter)

($1=.8054 Euro)

(See for the global service for
real estate professionals from Reuters)

Global office rents starting to recover -CBRE