/European%20Market%20Indicators%20Summer%202011

research

Summer 2011

european Market Indicators

European rental cycles Offices Brussels, Frankfurt, Geneva, Helsinki, Oslo, Vienna, Zurich

London (City), London (West End), Moscow Paris, Stockholm, Warsaw

Barcelona, Bucharest, Dublin, Lisbon, Madrid Budapest, Edinburgh

Amsterdam, Copenhagen, Kiev, Milan, Munich, Prague

Logistics Barcelona, Dublin, Madrid Moscow

Budapest, Lisbon

Warsaw

Amsterdam, Brussels, Bucharest, Copenhagen, Edinburgh, Kiev, Milan, Paris, Vienna

Frankfurt, Geneva, Helsinki, London, Munich, Oslo, Prague, Stockholm, Zurich

Shopping centres Moscow

Barcelona, Bucharest, Budapest, Dublin, Lisbon, Madrid

Warsaw

Amsterdam, Copenhagen, Edinburgh, Paris, Vienna

Brussels, Frankfurt, Geneva, Helsinki, Kiev, London, Milan, Munich, Oslo, Prague, Stockholm, Zurich

The Knight Frank wave depicts the current position of selected European centres with respect to their local prime rental cycle. As demand swells relative to supply and rents rise, centres move towards the crest of the wave. As demand ebbs and rental levels weaken, centres start to move down the wave towards the trough.

Some markets will ride the wave more quickly than others. Similarly, some markets will tread water for periods of time or move only gently through the wave.

summer 2011

european Market Indicators

Market monitor – Summer 2011

Offices Logistics Shopping centres Retail warehousing City Prime rents Prime yields Prime rents Prime yields Prime rents Prime yields Prime rents Prime yields

(€/sq m/yr) (%) (€/sq m/yr) (%) (€/sq m/yr) (%) (€/sq m/yr) (%) 5.75 6 58 4 7.25 4 1,000 4 5.75 4 135 4 7.00 4 Amsterdam 340 4 Barcelona 222 6 6.00 4 78 4 7.75 4 528 4 6.50 4 168 4 6.75 4 Brussels 310 4 6.00 4 45 4 7.00 4 1,250 4 5.50 4 170 4 6.50 4 Bucharest 192 4 8.50 4 48 4 10.50 4 810 4 9.00 4 96 4 10.00 4 Budapest 240 4 7.50 4 54 4 9.00 4 900 4 7.00 4 102 4 8.00 4 Copenhagen 235 4 5.25 4 67 4 7.25 4 645 4 6.00 4 150 4 7.00 4 Dublin 376 4 7.25 5 75 6 9.00 5 3,750* 6 7.75 5 100 6 8.25 5 Edinburgh 333 4 6.00 4 88 4 6.75 4 2,160* 4 5.75 4 368 4 5.50 4 Frankfurt 432 5 5.00 6 72 5 7.00 6 1,800 4 5.25 4 108 4 6.75 6 Geneva 700 4 5.00 4 130 4 6.50 4 1,100 5 5.25 4 300 4 5.75 4 Helsinki 336 5 5.50 6 108 5 7.25 4 1,250 4 5.75 4 150 4 6.75 4 Kiev 283 4 12.00 4 50 4 12.00 4 768 4 13.00 4 N/A N/A Lisbon 228 6 7.00 5 60 4 8.00 4 900 4 7.25 4 96 4 7.75 4 London 1,111(WE) 5 / 679 (C) 4 4.00(WE) 4/ 5.25(C) 4 148 4 6.25 4 5,556* 4 5.25 6 494 4 5.25 4 Madrid 330 6 5.75 4 72 4 7.75 4 540 4 6.50 4 168 4 6.75 4 Milan 525 4 5.00 6 55 4 7.50 4 750 4 6.25 4 150 4 7.25 4 Moscow 768 5 9.50 4 89 5 12.00 4 1,990 5 10.50 4 N/A N/A Munich 360 5 4.50 4 78 4 7.00 4 1,800 4 5.25 4 144 4 6.50 6 Oslo 439 5 5.25 4 129 5 6.75 4 1,000 4 6.00 4 135 4 6.50 4 Paris 780 5 4.75 6 52 4 7.00 4 2,000 4 4.75 4 180 4 6.00 4 Prague 246 4 6.75 4 51 5 8.00 6 840 4 6.75 4 144 4 7.25 4 Stockholm 494 5 5.00 6 112 5 6.75 6 800 4 5.25 6 190 4 6.00 6 Vienna 294 4 5.25 4 72 4 7.25 4 1,080 4 6.00 4 156 4 6.50 4 Warsaw 288 4 6.50 6 66 4 7.75 6 1,020 4 6.50 6 96 4 7.50 6 Zurich 625 4 5.00 4 150 4 6.50 4 950 4 5.25 4 300 4 5.75 4

2006

2007

2008

2009

2010

2011

Source: Knight Frank

2006

2007

2008

2009

2010

Source: Knight Frank

Figures 1 & 2 show averages of prime office rents and yields in the cities covered by this report, with markets weighted according to size and market maturity.

International Research

European Investment Team

European Valuations Team

Matthew Colbourne

Andrew Sim

Nick Powlesland

Senior Analyst

Partner, Head of European Investment

Partner, Head of European Valuations

+44 (0)20 7861 1238

+44 (0)20 7861 1193

+44 (0)20 7861 1283

matthew.colbourne@knightfrank.com

andrew.sim@knightfrank.com

nick.powlesland@knightfrank.com

www.KnightFrank.com Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934.

Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.

Summer

Winter Spring

Winter

Summer Autumn

Winter Spring

Autumn

Summer

Winter Spring

Autumn

Spring Summer

Autumn Winter

4.0

Spring

350

Summer

4.5

Summer

400

Winter Spring

5.0

Winter

450

Spring Summer Autumn

5.5

Summer Autumn

500

Winter Spring

6.0

Autumn

550

Summer

6.5

Winter Spring

600

Autumn

7.0

Spring Summer

%

650

Autumn Winter

European weighted average prime office yield

€ per sq m per annum

Spring

Figure 2

European weighted average prime office rent

Summer

Figure 1

Spring Summer Autumn

Indicative prime yields, as quoted locally, based upon a hypothetical Grade A unit. Office rents are for prime city area Grade A space, 2,000 sq m. Shopping Centre rents are based on prime covered shopping malls, quoted on best position, 100 sq m units. Retail Warehouse rents are for units of 1-5,000 sq m located in purpose built parks. Typical Retail Warehouse schemes vary between countries. Logistics rents are for prime industrial space of units over 5,000 sq m. The data above is provided for general reference purposes only. Local market conditions will vary. *Zoned/weighted figure. Arrows provide a broad indication of recent movements and the short-term outlook for prime rents and yields. London office data is quoted for the West End (WE) and City (C) submarkets.

2011