propertytalk Live! - Global office development spurred by emerging markets

propertytalk Live! - Global office development spurred by emerging markets

Strong economic growth in the world’s emerging markets is driving global corporates to refocus investment decisions.

The move is resulting in higher demand for office space in Latin America and Asia Pacific regions, where strong growth and promising economic conditions exist, according to CB Richard Ellis’s latest Global Office Market View.

Andrew Hallissey, Head of Client Solutions, Global Corporate Services, CBRE, said: "Global economic sentiment is upbeat, due in part to subsiding worry of a double-dip recession and ongoing news of strengthened growth in many of the world’s emerging markets, including Latin America and Asia Pacific.

"Much of the world’s strongest economic growth has been captured by emerging markets. We have experienced a surge in demand for prime office space from multinational companies with an increased desire to manage their global real estate operations strategically, in locations where strong growth and promising economic markets exist. In doing so, a trend for increased global office development has arisen in emerging markets."

Unsurprisingly, the strongest forecasts for office development activity in 2011 and 2012 are in regions experiencing the most robust economic growth. Thus, much recent office development is occurring not in the world’s advanced economies, but instead in emerging markets where strong economic growth persists.

Richard Holberton, Director of EMEA Research, CBRE, said: "Global corporates continue to fuel the Asia Pacific office market, as the region returned to levels of demand not seen since prior to the global financial crisis. During the course of 2010, 43 million sq ft, or 46% of newly developed office space across the world was in Asia.