Expectation of more job losses points to falling office rents

Recession in the European economy is hitting the labour market hard. Recent survey data from the European Commission show that employment intentions in the service sector may be turning a corner, but for now remain weak. What’s more, office rental values are unlikely to have reflected fully the economic slowdown already seen. As such, we continue to think that office rental values will fall across the board in the second half of 2009.