CB RICHARD Ellis, the commercial-property agent, has just published its latest global energy cities report.
This provides an overview of the rental costs of occupying prime office space in the main global hubs where energy companies have a strong presence, including Aberdeen. CBRE said the success of many of these cities was often influenced by the activities of the energy sector, which in turn was driven by the price of oil.
As the price of crude oil climbed to the peak of $147 a barrel in July 2008, levels of demand for office space resulted in a rise in prime rents in energy cities worldwide.
As the price of crude dropped to a low of $35 a barrel late in 2008 and as energy businesses faced funding challenges, the combination led to a downturn in activity causing an impact on occupier demand. With parts of the global economy moving out of recession, the price of oil improved and led to increased oil contract activity, which reflected in many of the energy cities showing positive year-on-year prime office rent figures.
CBRE said year-on-year rental improvements had not been universal and many energy cities continued to show declines because they were affected by local economic issues and the wider markets.
Aberdeen prime office property rentals were flat year-on-year at £30 per square foot. In Calgary they fell 7.9% at just under £30, in Houston were 0.3% lower at £17 and in London rose by 6.3% to £80.