Q1 2025 Global Prime Office Rent Tracker
Prime office asking rents increased year-over-year in 51 of the 74 global markets tracked by CBRE in Q1 2025, driven by continued strong demand and little new supply of prime space in core locations.
Americas
Eleven of the 17 major Americas office markets tracked by CBRE had year-over-year increases in prime office asking rents1 in Q1 amid strong demand for top-tier space and historically low levels of new supply.
Denver led with year-over-year rent growth of 11.0%, followed by Washington, D.C. (7.9%), Atlanta (4.9%) and Mexico City (3.4%). Vancouver had the biggest year-over-year drop in prime asking rent (-6.8%) due to slower leasing activity in buildings with the highest asking rents, followed by Montreal (-5.9%) and Seattle (-4.2%).
While overall office demand remains below pre-pandemic levels, prime office space has remained in high demand. Prime buildings have registered 60 million sq. ft. of positive net absorption since Q1 2020, compared with negative 165 million sq. ft. in non-prime buildings. The 14.8% prime office vacancy rate is 4.4 percentage points below the non-prime market average. Continued demand and rent growth is expected in the prime segment, particularly as construction starts remain limited.
Strong demand for newer, amenity-laden prime space will likely outpace lower levels of new supply in many markets throughout 2025, further tightening the top end of the market and supporting prime rent growth.
1Americas region prime office asking rents are for available space only, whereas prime rents cited for Europe and Asia-Pacific include estimates of what occupied space would rent for if it were available.
Europe
CBRE’s prime office rent index for Europe rose 6.6% year-over-year, as blue-chip occupiers continued to prefer the highest-quality buildings. Prime office rents increased in 22 of the 32 major European markets tracked by CBRE.
Several markets had sizable prime rent growth on both a quarter-over-quarter and year-over-year basis in Q1, led by Rotterdam (10.0% and 11.9%, respectively), London West End (6.3% and 9.7%), Bucharest (4.8% and 7.3%) and Rome (4.1% and 7.1%).
Overall office leasing volume in Europe decreased by 3.2% year-over-year in Q1. Construction completions fell by 28% quarter-over-quarter to 10.6 million sq. ft. and along with 3.8 million sq. ft. of negative net absorption led to a 10-basis-point increase in the overall office vacancy rate to 8.8%. A smaller development pipeline across many European markets should support future prime rent growth.
Asia-Pacific
The Asia-Pacific office market was generally strong in Q1, with 14 of the 25 major markets tracked by CBRE recording year-over-year increases in prime asking rents. These gains were largely driven by strong demand across most Asian markets and the easing of new supply pipelines in most Pacific markets.
Tokyo led with year-over-year rent growth of 9.4%, followed by Delhi (9.1%) and Mumbai (8.9%). Flight-to-quality demand and tight availability of prime space were the main drivers of robust rent growth. In contrast, Greater China markets and Manila recorded year-over-year declines in prime rents as landlords offered better incentives to maintain occupancy amid the high vacancy environment.
While net absorption of Class A office space increased by 25% year-over-year to 17.2 million sq. ft. in Q1, occupier sentiment is expected to soften in Q2 due to global economic uncertainty. However, prime office space is expected to remain most in demand.
