European rental cyclesOffices

Logistics

Shopping centres

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.

Moscow

Zurich

Barcelona, Bucharest, Dublin, Lisbon, Madrid

Dublin, Lisbon

Barcelona, Madrid, Paris, Zurich

Amsterdam, Bucharest, Budapest, Copenhagen, Edinburgh

Amsterdam, Brussels, Copenhagen

Barcelona, Madrid, Milan

Paris, Zurich

Budapest, Dublin, Edinburgh, Lisbon

Frankfurt, Helsinki, Kiev, London (City), London (West End), Stockholm, Warsaw

Geneva, Moscow

Bucharest, Prague, Vienna

Munich, Oslo

Brussels, London, Paris

Helsinki, Munich, Oslo, Prague

Frankfurt, Kiev

Geneva, Stockholm Warsaw

London, Milan

Vienna

Brussels, Helsinki, Munich, Oslo, Prague

Stockholm

Frankfurt, KievGeneva, Moscow, Warsaw

Amsterdam, Budapest, Copenhagen, Edinburgh, Milan, Vienna

research

Winter 2012/13

europeanMarket Indicators

www.KnightFrank.comKnight 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.

European Research Matthew Colbourne

Associate, International Research

+44 (0)20 7861 1238

matthew.colbourne@knightfrank.com

European Investment Team Andrew Sim

Partner, Head of European Investment

+44 (0)20 7861 1193

andrew.sim@knightfrank.com

European Valuations Team Nick Powlesland Partner, Head of European Valuations

+44 (0)20 7861 1283

nick.powlesland@knightfrank.com

Market monitor – Winter 2012/13

Offices Logistics Shopping centres Retail warehousingCity 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) (%)Amsterdam 340 4 6.25 4 85 4 7.25 4 1,000 4 5.50 4 135 4 6.75 4Barcelona 186 6 6.25 5 54 6 8.50 5 564 4 7.00 5 162 6 7.00 4Brussels 285 4 6.25 4 45 4 7.50 4 1,400 5 5.25 6 170 4 6.25 4Bucharest 216 4 8.50 4 45 6 11.00 4 600 6 9.00 4 96 4 10.00 4Budapest 240 4 7.25 4 54 4 9.00 4 960 4 7.00 4 90 4 8.00 5Copenhagen 241 4 5.00 4 67 4 7.50 4 644 4 5.75 4 150 4 6.75 4Dublin 323 4 7.00 4 65 4 9.50 4 3,000* 4 8.00 4 75 6 8.25 4Edinburgh 357 4 6.50 4 93 4 7.75 4 2,250* 4 6.25 4 397 4 6.50 5Frankfurt 432 4 5.00 4 75 4 6.75 4 1,500 4 4.75 4 120 4 6.50 4Geneva 820 4 4.25 4 150 4 6.00 4 1,100 4 4.75 4 250 4 5.50 4Helsinki 366 4 5.50 4 108 4 7.25 4 1,200 4 5.25 4 145 4 6.75 4Kiev 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 5London 1,258 (WE) 4 / 728 (C) 44.00(WE) 4/ 5.25(C) 4 159 4 6.25 4 5,890* 4 5.25 4 530 4 5.25 5Madrid 312 6 6.00 5 57 6 8.50 5 540 4 7.00 5 156 6 7.00 4Milan 510 6 5.75 5 55 4 8.25 5 750 4 6.50 5 150 4 7.50 5Moscow 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 4Oslo 530 4 5.25 4 136 4 6.50 4 1,000 4 5.50 4 150 4 6.25 4Paris 820 4 4.50 4 53 4 7.25 4 1,600 4 5.00 5 120 4 5.75 5Prague 246 4 6.50 4 51 4 8.25 5 840 4 6.25 4 120 4 7.75 5Stockholm 520 4 4.50 4 119 4 6.50 4 800 4 5.00 4 220 4 5.75 4Vienna 294 4 5.25 4 72 4 7.25 4 1,080 4 5.75 4 156 4 6.50 4Warsaw 305 4 6.25 4 66 4 7.75 4 1,020 4 6.00 6 96 4 7.25 4Zurich 650 4 4.00 4 140 4 6.00 4 1,200 4 4.75 4 250 4 5.50 4

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.

Winter 2012/13europeanMarket Indicators

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Figure 1

European weighted average prime office rent€ per sq m per annum

Figure 2

European weighted average prime office yield%

Source: Knight Frank 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.

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