Increased values and rents for office space predicted

Office design news from Morgan Lovell

Published on 31-05-2011

CB Richard Ellis (CBRE) has published a new report which highlights the likelihood of there being a sustained worldwide recovery in the office sector.

The CBRE Global Office Rent Index rose by 4.3 per cent year-on-year in the first quarter of 2011, following a rise of 2.4 per cent in the previous three-month period.

In addition, the CBRE Global Office Capital Value Index rose by 12 per cent year-on-year.

Richard Holberton, director of research for Europe, the Middle East and Africa at CBRE, said: "While we are still seeing some capital uplift from yield improvements, these have eased as investors assess the likely implications of both earlier value growth and lingering economic risks."

Meanwhile, Stephen Welton, chief executive of the Business Growth Fund, recently told listeners to the BBC Wake Up to Money podcast that the government's new £2.5 billion fund could have a significant impact on office design and expansion for firms across the UK.

He argued that the fund aims to provide up to £2 million in funding to all companies that have an annual turnover in excess of £10 million.

Posted by Ian Johnson