European%20Market%20Indicators%20Winter%202012-2013

research

Winter 2012/13

european Market Indicators

European rental cycles Offices Geneva, Moscow Frankfurt, Helsinki, Kiev, London (City), London (West End), Stockholm, Warsaw Munich, Oslo

Paris, Zurich

Barcelona, Madrid, Milan

Bucharest, Prague, Vienna

Budapest, Dublin, Edinburgh, Lisbon

Amsterdam, Brussels, Copenhagen

Logistics

Moscow Zurich

Helsinki, Munich, Oslo, Prague

Geneva, Stockholm Warsaw Frankfurt, Kiev

Barcelona, Bucharest, Dublin, Lisbon, Madrid Amsterdam, Budapest, Copenhagen, Edinburgh, Milan, Vienna

Brussels, London, Paris

Shopping centres Geneva, Moscow, Warsaw Frankfurt, Kiev

Barcelona, Madrid, Paris, Zurich

Brussels, Helsinki, Munich, Oslo, Prague

Dublin, Lisbon

Vienna

Stockholm

Amsterdam, Bucharest, Budapest, Copenhagen, Edinburgh

London, Milan

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.

Winter 2012/13

european Market Indicators

Market monitor – Winter 2012/13

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) (%) 6.25 4 85 4 7.25 4 1,000 4 5.50 4 135 4 6.75 4 Amsterdam 340 4 Barcelona 186 6 6.25 5 54 6 8.50 5 564 4 7.00 5 162 6 7.00 4 Brussels 285 4 6.25 4 45 4 7.50 4 1,400 5 5.25 6 170 4 6.25 4 Bucharest 216 4 8.50 4 45 6 11.00 4 600 6 9.00 4 96 4 10.00 4 Budapest 240 4 7.25 4 54 4 9.00 4 960 4 7.00 4 90 4 8.00 5 Copenhagen 241 4 5.00 4 67 4 7.50 4 644 4 5.75 4 150 4 6.75 4 Dublin 323 4 7.00 4 65 4 9.50 4 3,000* 4 8.00 4 75 6 8.25 4 Edinburgh 357 4 6.50 4 93 4 7.75 4 2,250* 4 6.25 4 397 4 6.50 5 Frankfurt 432 4 5.00 4 75 4 6.75 4 1,500 4 4.75 4 120 4 6.50 4 Geneva 820 4 4.25 4 150 4 6.00 4 1,100 4 4.75 4 250 4 5.50 4 Helsinki 366 4 5.50 4 108 4 7.25 4 1,200 4 5.25 4 145 4 6.75 4 Kiev 324 4 12.50 4 56 4 11.00 4 833 4 12.00 4 N/A N/A Lisbon 216 4 8.00 5 60 4 8.75 4 780 4 8.00 4 96 4 8.50 5 London 1,258 (WE) 4 / 728 (C) 4 4.00(WE) 4/ 5.25(C) 4 159 4 6.25 4 5,890* 4 5.25 4 530 4 5.25 5 Madrid 312 6 6.00 5 57 6 8.50 5 540 4 7.00 5 156 6 7.00 4 Milan 510 6 5.75 5 55 4 8.25 5 750 4 6.50 5 150 4 7.50 5 Moscow 920 4 8.50 4 107 5 11.00 4 2,922 5 9.50 4 N/A N/A Munich 372 4 4.50 4 78 4 6.75 4 1,860 4 4.75 4 144 4 6.50 4 Oslo 530 4 5.25 4 136 4 6.50 4 1,000 4 5.50 4 150 4 6.25 4 Paris 820 4 4.50 4 53 4 7.25 4 1,600 4 5.00 5 120 4 5.75 5 Prague 246 4 6.50 4 51 4 8.25 5 840 4 6.25 4 120 4 7.75 5 Stockholm 520 4 4.50 4 119 4 6.50 4 800 4 5.00 4 220 4 5.75 4 Vienna 294 4 5.25 4 72 4 7.25 4 1,080 4 5.75 4 156 4 6.50 4 Warsaw 305 4 6.25 4 66 4 7.75 4 1,020 4 6.00 6 96 4 7.25 4 Zurich 650 4 4.00 4 140 4 6.00 4 1,200 4 4.75 4 250 4 5.50 4

%

650

7.0

600

6.5

550

6.0

500

5.5

450

5.0

400

4.5

350

4.0

2007

2008

2009

2010

2011

2012

Source: Knight Frank

Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn

European weighted average prime office yield

€ per sq m per annum

Winter

Figure 2

European weighted average prime office rent

Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn Winter Spring Summer Autumn

Figure 1

2007

2008

2009

2010

2011

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.

European Research

European Investment Team

European Valuations Team

Matthew Colbourne

Andrew Sim

Nick Powlesland

Associate, International Research

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.

2012

Winter

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.