CBRE: New York office rents up 34% from last year.

Asking rent for prime office space increased in 10 major global business centers during the 12 months ended June 30, 2007, with five posting increases in excess of 20%, according to new research from CB Richard Ellis Group, Inc. (CBRE). Vacancy rates declined virtually across the board and remained in single digits in all 10 markets, CBRE reported. Of the 10 markets surveyed, the West End of London--the most expensive office market in the world---experienced the sharpest rent increase, rising 37% to an average of 120.00 [pounds sterling] (US$243.73) psf. Rent has not grown this rapidly in London's West End in 19 years. Madrid posted the thirdhighest increase, rising approximately 25% to 456 [euro] per square meter (US$57.90 psf). At mid-year, vacancies in London's West End and Madrid dropped to 2.5% and 6.5%, respectively. London's West End vacancy rate was the lowest since mid-year 2001. Rent in Paris increased approximately 14% to 771 [euro] per square meter (US97.92 per square foot), as vacancy fell to 3.8%.

New York recorded the most significant asking rent increase in the U.S., rising 34%--the sharpest year-over-year increase in New York in at least two decades--to an average of $63.56 psf as market-wide vacancy fell to 4.4%. Los Angeles asking rent also recorded a significant increase, rising 20% to an average of $32.16 psf at mid-year, as vacancy fell to 8.9%. Vacancy dropped in Toronto, declining 1.5 percentage points during the past year to 3.7%, while rent rose 3% to CAN$28.82 (US$27.29) per square foot. Washington, D.C.'s asking rent increased 8% to $48.31 psf and vacancy fell to 7.2%.

Asking rent rose 24% in Hong Kong, to an average of HK$717.60 (US$91.65) psf, as vacancy dipped to 3.9%. Tokyo rents rose 16% to JPY690,000 per tsubo (US$163.04 psi) while its miniscule vacancy increased minimally to 0.9%. Sydney's mid-year 2007 vacancy dropped to 6.0%, while rent rose 8% to AUS$641.00 per square meter (US$50.94 psf).

EDITOR'S NOTE: In a report by Luis Roges of Meridian Design Associates, Architects, P.C., featured in the August 8 REW Energy supplement, it was stated that Boulder City, Colorado is the site of the most recent, large-scale, renewable-power-source project known as Nevada Solar One. The project is in fact in Boulder, Nevada. In addition, an editing notation was inadvertently included in the article. To view the complete, corrected article, please visit www.rew-online.com.