Report: market conditions tightening around the globe.

Recent research concluded by CB Richard Ellis Group, Inc noted that asking rent for prime office space increased by 37% in Hong Kong and 17% in London over the past year, as these two premier business centers set a brisk pace for rental rate growth in major commercial real estate markets worldwide.

The jump in asking rent reflects tightening market conditions around the globe. In Hong Kong, asking rents shot up 37% in the past 12 months to an average of $69.12, as vacancy receded to 4.1% from 6.2% at mid-year 2005. Tokyo's razor-thin vacancy of 0.6% at mid-year (down from 2.2% a year earlier) spurred a 12% jump in average asking rent to $148.17.

Key business centers in Europe also posted strong, double-digit increases in rental rates. London asking rent rose 17% year-over-year to an average of $163.23, and Madrid also logged a 17% increase to a $43.18 average. London and Madrid vacancy stood at 5.7% and 8.2%, respectively, at mid-year 2006. In North America, Toronto asking rents rose 9% to an average of $24.58 at mid-year, as vacancy slid to 5.2% from 8.4% at mid-year 2005. New York registered a 7% increase in asking rent--to an average of $47.30--as market-wide vacancy fell 1.8 percentage points to 6.3%.

Vacancy dropped sharply in Los Angeles, declining 4.6 percentage points over the past year to 9.1%. This marks the first time in more than two decades that average vacancy has fallen to single digits in Los Angeles. At 9.4% Sydney's mid-year 2006 vacancy also stands at single digits for the first time since 2003. All 10 global business centers now have vacancy rates below 10%, a significant milestone in the ongoing recovery of commercial real estate worldwide.

"Leasing markets around the world are gaining momentum, fueled by expanding economies," said Ward S. Caswell of CBRE Research. "This is especially true in the world's largest business centers, where growing demand for office space is causing vacancy rates to fall to single digits. As a result, we are seeing rental rate increases all over the world, and in cities such as Tokyo, where supply-demand conditions are extremely tight, rents are spiking."

Above is a list of the 10 markets surveyed by CBRE Research.

They were selected based on the fact that they are among the largest and most active office markets in the world.

                     2006      % Change     Vacancy     Change
Market              Rent/sf    from 2005     Rate      from 2005

Hong Kong            $69.12     +37.1%       4.1%      -2.1 pt.
London              $163.23     +17.4%       5.7%      -2.3 pt.
Los Angeles          $30.00      +3.3%       9.1%      -4.6 pt.
Madrid               $43.18     +17.3%       8.2%      -0.1 pt.
New York             $47.30      +7.3%       6.3%      -1.8 pt.
Paris                $80.00      +5.1%       4.8%      -0.7 pt.
Sydney               $42.20      +4.6%       9.4%      -1.1 pt.
Tokyo               $148.17     +12.1%       0.6%      -1.6 pt.
Toronto              $24.58      +9.2%       5.2%      -3.2 pt.
Washington, D.C.     $45.40      +0.6%       7.3%      -0.6 pt.

Source: CBRE Research