Rents Lose Momentum: By Mid-2013, Though, Short-term Worries Will Likely Subside and Rental Rate Growth Should Pick Up
Rental growth is decelerating, with slightly more than one-third of major global markets registering rental increases during third quarter 2012. The Americas experienced moderate office rent growth during the quarter as prime rents increased 0.6 percent quarter-on-quarter. This represents further deceleration from the 1.1 percent quarter-over-quarter pace during the second quarter, and is the slowest quarterly growth since first quarter 2011.
Although the Americas office market now stands 8.5 percent above its post-global financial crisis trough, the current level remains 6.8 percent lower than where it peaked just before the onset of the crisis in 2008.
Though there are still wide variations in performance by each city within the region’s rental rates, one notable trend from the third quarter 2012 results is that the outperformers in the United States and Canada, mostly the technology-driven and energy sector markets, have seen rental growth slowing noticeably from