Demand in the office sector "is coming from a broad range ofinvestors including UK funds," according to a new report fromCushman & Wakefield, which says that investors "have beenbuoyed by a firming in sentiment among tenants in the UK's mainoffice markets as many look to take new space before rents riseagain and incentives fall." London's West End office rents are thehighest in the world, according to a recent report from CB RichardEllis, which also notes that the year-over-year change in primeoffice occupancy costs of the 179 markets monitored by CBRErevealed an average drop of 7.7% worldwide over the 12-month periodending Sept. 30.

London's West End rate was $185 per square foot per year, withMoscow second in Europe at $132 per square foot in the recent CBREreport. Tokyo's Inner Central district has slipped to second placeworldwide at $171.64, followed by that city's Outer Central marketat $139.09. Hong Kong's Central Business District at $137.61 andMoscow are fourth and fifth worldwide respectively in the CBREreport.

The reports by CBRE and others present a mixed bag for theoffice market. Despite the high numbers reflected in the top rentalrates worldwide, the trend has been downward for office rents forsome time. On the other hand, the analyses today are showing somehope for an economic recovery that could ultimately lead to jobgrowth that could ultimately increase demand for space.

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