Tokyo Now World's Most Expensive Office Market; West End of London and Moscow Ranked Second and Third, Respectively

Financial centers have been most significantly affected by declining occupier demand and, as one would expect, registered the most material decreases in office rents. In many cases, major global office markets have seen occupancy costs fall by 20% or more over the last 12 months. Across the 170 cities as a whole, office occupancy costs fell 2.8% over the 12 month period ending March 31, 2009 (on an un-weighted average basis) compared with an increase of 8.0% in the 12 month period ending September 30, 2008 Singapore had the largest year over year decrease in occupancy costs with a drop of 34%.

Some markets did record increases in costs over the last 12 months but these markets--such as Charlotte (U.S.), Marseille (France) and Perth (Australia)--are very much the exception rather than the rule. Generally, these increases are either due to exceptional local market conditions, such as the completion of a top quality new building in a market where none was available previously, or simply that occupancy costs remain above the level of a year ago despite the fact that they are now falling. Such situations illustrate the uneven way in which the economic downturn is affecting different markets around the globe, according to the CBRE report.

"The great global recession has clearly taken its toll on the world's office markets, particularly those with significant concentrations of financial industry employers," said Dr. Raymond Torto, CBRE's Global Chief Economist. "The most expensive office markets, as measured in dollars, are considerably less expensive than a year ago and occupiers are now in a strong position to procure prime space at attractive costs. For instance, a year ago office space in London's West end was nearly $300 per sq. ft., while today that space goes for $172 per sq. ft."

Asia-Pacific

Tokyo (Inner Central) was the world's most expensive market with an occupancy cost of $183 per sq. ft. Hong Kong (CBD) was the fourth most expensive global market with occupancy costs of $150 per sq. ft. Tokyo (Outer Central) and Mumbai were the other two Asia-Pacific markets in the top 10 most expensive cities roster.

Singapore, while experiencing the largest drop in occupancy costs, was not alone among Asia-Pacific financial centers in seeing a sharp decline. Hong Kong, Tokyo and Mumbai posted large drops in office occupancy costs. Conversely, Perth had the second fastest growing occupancy cost during the past 12 months with costs rising 22%, although it's important to note that the increase took place in 2008.

Europe

London's West End was the world's second most expensive office market at $172 per sq. ft. and Moscow was a close third with occupancy costs at $170 per sq. ft. Dubai, Paris, the City of London and Dublin all were in the top ten most expensive markets.

Twelve cities in the region posted doubled digit declines in office cost. Moscow had the sharpest decline in the region followed closely by Oslo (Norway), while occupancy costs in London's West End, previously the most expensive market in our report, fell 20%. In addition to Marseille, Durban (South Africa) was among the world's top five markets with occupancy cost growing by 18% during the past 12 months.

Americas

The most expensive office location in the Americas is still New York's Midtown with occupancy costs of $68 per sq. ft. However, that market's occupancy costs declined 32%--the second steepest decline in the global survey. While occupancy costs in New York's Midtown are high for North America, it ranked just 21st globally. Boston's suburban market posted a decrease of nearly 30%, putting that market in fourth position in the top decreases chart in the report.

Sao Paulo (Brazil) posted the Latin American region's highest occupancy costs at $57 per sq. ft. and is ranked 33rd globally. Latin America has held up better than the rest of the world with only three cities posting small negative growth rates, the worst being Mexico City with a 5.6 percent decrease. Nine markets in North America posted double digit declines.

Top Ten                                  Fastest Changing
Most                                     Occupancy Costs
Expensive Markets
(In US$ per sq. ft. per                  (In local currency &
annum)                                   measure)
                           US$/SF/annum                           % Change
1. Tokyo, (Inner Central)  183.62        Top 5 Decreases
2. London (West End)       172.62        1. Singapore             -34.4
3. Moscow                  170.24        2. New York (Midtown)    -31.5
4. Hong Kong (CBD)         150.42        3. Hong Kong (CBD)       -29.9
5. Tokyo (Outer Central)   149.58        4. Boston (suburban)     -29.7
6. Mumbai                  131.04        5. Hong Kong (Citywide)  -28.5
7. Dubai                   122.52
8. Paris                   114.89        Top 5 Increases
9. London (City)           103.50        1. Marseille             30.4
10. Dublin                 93.56         2. Perth                 22.2
                                         3. Santo Domingo         21.7
                                         4. Durban                18.2
                                         5. Charlotte             14.2

Note: The full Top 50 Most Expensive Markets chart is located at the end of this press release.

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 "best in class" company three years in a row and a Fortune 100 fastest growing company two years in a row. Please visit our Web site at www.cbre.com.

Notes to Editors

1. Global MarketView/Office Occupancy Costs is a survey of office occupation costs for prime office space in more than 170 cities worldwide.

2. The latest survey provides data on office rents and occupancy costs as of March 31, 2009

3. The Fastest Changing rankings are based upon occupancy costs in local currency and measure. The Most Expensive ranking is based upon occupancy costs in US$ per sq. ft. per annum.

4. The figures given in this release refer to occupancy cost. This represents rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market.

5. To obtain a full copy of the report or to arrange to speak with a CBRE expert, please contact Robert McGrath at 212.984.8267 or robert.mcgrath@cbre.com.

Top 50 Most Expensive Office Markets as of March 31, 2009 (converted to U.S. dollars)

Rank Market                          US$/sq ft/annum EUR /sq m/month GBP /sq ft/annum Aus$/sq m/annum Can$/sq ft/annum JPY /sq ft/annum
1    Tokyo, (Inner Central), Japan   183.62          124.30          128.17           2,856           231.49           18,149
2    London (West End), England      172.62          116.85          120.49           2,685           217.62           17,061
3    Moscow, Russia                  170.24          115.25          118.83           2,648           214.62           16,827
4    Hong Kong (CBD)                 150.42          101.83          104.99           2,340           189.63           14,867
5    Tokyo (Outer Central), Japan    149.58          101.26          104.41           2,327           188.58           14,785
6    Mumbai, India                   131.04          88.71           91.47            2,038           165.20           12,952
7    Dubai, United Arab Emirates     122.52          82.94           85.52            1,906           154.46           12,110
8    Paris, France                   114.89          77.78           80.20            1,787           144.85           11,356
9    London (City), England          103.50          70.06           72.24            1,610           130.48           10,230
10   Dublin, Ireland                 93.56           63.33           65.30            1,455           117.95           9,247
11   Abu Dhabi, United Arab Emirates 91.21           61.74           63.66            1,419           114.99           9,015
12   New Delhi, India                86.94           58.86           60.69            1,352           109.61           8,593
13   Paris La Defense, France        86.04           58.24           60.05            1,338           108.47           8,504
14   Hong Kong (Citywide)            84.47           57.18           58.96            1,314           106.49           8,349
15   Singapore, Singapore            82.79           56.04           57.78            1,288           104.37           8,183
16   Milan, Italy                    80.89           54.76           56.46            1,258           101.98           7,996
17   Luxembourg City, Luxembourg     77.58           52.52           54.15            1,207           97.81            7,668
18   Zurich, Switzerland             76.69           51.91           53.53            1,193           96.68            7,580
19   Geneva, Switzerland             73.42           49.70           51.25            1,142           92.56            7,257
20   Ho Chi Minh City, Vietnam       70.27           47.57           49.05            1,093           88.59            6,945
21   New York Midtown, U.S.          68.63           46.46           47.90            1,067           86.52            6,783
22   Frankfurt am Main, Germany      68.30           46.24           47.67            1,062           86.11            6,751
23   Edinburgh, Scotland             66.61           45.09           46.49            1,036           83.98            6,584
24   Madrid, Spain                   66.47           45.00           46.40            1,034           83.80            6,570
25   Shanghai (Pudong), China        65.22           44.15           45.52            1,014           82.22            6,446
26   Rome, Italy                     64.93           43.96           45.32            1,010           81.86            6,418
27   Manchester, England             63.75           43.15           44.49            991             80.36            6,301
28   Birmingham, England             63.03           42.67           43.99            980             79.46            6,230
29   Leeds, England                  60.88           41.21           42.50            947             76.75            6,018
30   Perth, Australia                59.15           40.04           41.29            920             74.57            5,847
31   Glasgow, Scotland               58.73           39.76           41.00            914             74.04            5,805
32   Stockholm, Sweden               58.59           39.66           40.90            911             73.87            5,791
33   Sao Paulo, Brazil               57.74           39.09           40.30            898             72.79            5,707
34   Bristol, England                57.30           38.79           40.00            891             72.24            5,664
35   Rio de Janeiro, Brazil          57.26           38.76           39.97            891             72.19            5,660
36   Shanghai (Puxi), China          57.01           38.59           39.79            887             71.88            5,635
37   Munich, Germany                 56.00           37.91           39.09            871             70.60            5,535
38   Oslo, Norway                    54.75           37.07           38.22            852             69.03            5,412
39   Calgary, Canada (CBD)           54.57           36.94           38.09            849             68.80            5,394
40   Seoul, South Korea              54.18           36.68           37.82            843             68.30            5,355
41   Warsaw, Poland                  54.16           36.67           37.81            842             68.28            5,354
42   Prague, Czech Republic          53.23           36.03           37.15            828             67.10            5,261
43   Aberdeen, Scotland              53.00           35.88           37.00            824             66.82            5,239
44   New York Downtown, U.S.         52.92           35.82           36.94            823             66.72            5,231
45   Los Angeles (sub), U.S.         52.83           35.76           36.88            822             66.60            5,222
46   Toronto, Canada (CBD)           51.82           35.08           36.17            806             65.33            5,122
47   Washington, DC (CBD), U.S.      51.77           35.05           36.14            805             65.27            5,117
48   Athens, Greece                  51.62           34.95           36.03            803             65.08            5,102
49   Brussels, Belgium               50.43           34.14           35.20            784             63.58            4,985
50   Beijing, China                  49.44           33.47           34.51            769             62.32            4,886

SOURCE: CB Richard Ellis Research

CB Richard Ellis Group, Inc. 
Robert McGrath, 212.984.8267 
robert.mcgrath@cbre.com