LOS ANGLELES-Global office property values continued to improve, rising 0.9% during the first quarter while global office rents were stable for the period, according to CBRE Group, Inc.

“Office property's appreciation during the quarter accentuates the strong risk-adjusted returns offered by commercial real estate. The availability of such returns, in contrast to lower-yielding investment alternatives, continues to create intense competition for prime assets,” said Raymond Torto, CBRE global chief economist. “Limited supply and keen demand for prime space in the best locations have supported global office rent levels even in a global environment still constrained by chronic economic headwinds. As economic and property fundamentals continue to recover steadily the outlook for rents is for stability or, over time, moderate growth.”

The CBRE Office Capital Value Index continued its upward trajectory, rising 0.9% on the quarter and 2.5% year-over-year. Global office capital markets are outshining the global leasing markets due to several dynamics, including the migration of capital from other asset classes to commercial real estate seeking attractive risk-adjusted returns in a low interest rate environment.

• The Americas Office Capital Value Index (dominated by the U.S. region) had the strongest performance of all regional indices, growing 1.5% in Q1 and 5.9% year-over-year. While demand for prime property in U.S. gateway markets (such as New York, Washington D.C. and San Francisco) remains robust, given the aggressive pricing for such properties, investors have been more willing to invest in secondary markets such as Seattle, Houston, Dallas, Austin and Denver, which offer relatively higher yields than the core markets. While this shift is small and has yet to materially impact cap rates and pricing trends for assets in non-gateway markets, the initial movement in capital is worth noting.

• Q1 2013 marked the second consecutive quarter of positive growth for the EMEA Office Capital Value Index, which grew by 0.6% quarter-over-quarter. Relative to a year ago, capital values are down 0.2% in EMEA.

• Asia Pacific's Office Capital Value Index grew by 0.7% in the quarter and is the only regional index to have surpassed its pre-recession peak, expanding by 4.5% since Q2 2008. Key markets in Greater China and New Zealand continued to record rises in capital values during Q1. Relative to a year ago, capital vales are up 2.3% in Asia Pacific.

The Global Office Rent Index has steadily improved over the last five quarters thanks to moderate growth in the Americas and stability in Asia Pacific and EMEA. The Index was flat for Q1 2013 and up 0.8% over the past year. However, it still stands 9.5% below its pre-recession peak.

• In Q1 2013, the Americas Office Rent Index also plateaued as the region persevered through a persistently bumpy and slow economic recovery, weighed down by fiscal austerity and the effects of continued recession in Europe.