Search
 

German Office Value Continues Rise in Q1

BERLIN-Positive performance has gone on four eight consecutive quarters, though growth slowed this past quarter to 1.3% compared to Q4 2010.

By Allan Saunderson | Updated on May 12, 2011

BERLIN-First quarter prime office values in the seven top German cities showed a continuation of the positive performance trend from the last seven quarters, though growth slowed to 1.3% compared to the fourth quarter 2010, said Jones Lang LaSalle in a release of its latest Victor Prime Office indicator. The growth rate in Q4 alone had been 2.6%.

After a strong performance in core assets in last year’s second half, 5.5% higher, accompanied by strong demand for ‘core’ real estate, the market seems to have taken a breather in the first quarter, JLL said . “Because of the shrinking supply of such assets at present and the anticipated rises in rents, institutional investors are re-defining their short and medium-term investment strategies,” said Andrew Groom, head of Valuation & Transaction Advisory for JLL Deutschland. “We expect further rises in the index after a period of consolidation, mainly driven by rental growth. However the limited supply of property credit will play a significant role, despite the noticeable improvements of rents over the last 12 months. The impact of the rise in interest rates is also not to be underestimated and could have a braking effect on performance going forward.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.