London’s West End is still the world’s most expensive office market, CBRE’s ‘Global Prime Office Occupancy Costs’ survey shows. The top five is even more dominated by Asia, taking four out of five places as India kicked Moscow out of the top five. Moscow, now found on ninth place, represents the city with the biggest decrease in occupation costs, while Dublin is again the city with the biggest increase in prices.
Commercial property and real estate services consulting firm CBRE has recently released the first 2015-edition of its semi-annual ‘Global Prime Office Occupancy Costs’ survey for which it tracks the occupancy costs for prime office space in 127 cities around the globe. The study reveals the top 50 most expensive office markets in US dollars per square feet per annum, of which 19 are in EMEA, 20 in Asia Pacific and 11 in the Americas.
The research shows that London’s West End still is the highest-priced office market with a rate of $267.14 per sq. ft. per year. The second most expensive city is Hong Kong – Central at $254 per sq. ft., followed by Beijing (Finance Street) ($196 per sq. ft.), Beijing (Central Business District (CBD)) ($188 per sq. ft.). Last year’s top five market Moscow is no longer seen in the top five, as New Delhi (Connaught Place –CBD) has taken its place with office prices at $157 per sq. ft. Asia not only dominates the top five, but secured six places in the top 10, with Hong Kong – West Kowloon on sixth place and Tokyo on seventh.
The biggest decrease in occupancy costs (at -22.4%) is seen in Moscow, which was found in the top five last year and now takes ninth place, followed by Buenos Aires (-10.8%), Monterrey (-6.7%). The biggest increase is again seen in Ireland, in Dublin, where prices increased by 26.1%. Other cities that saw significant increases are Seattle (22.2%), Panama City (17.6%) and Belfast (13.3%).
“Occupier caution has declined and corporate confidence has been on the rise and this confidence is starting to translate into a degree of expansionary momentum,” explains Richard Barkham, Global Chief Economist at CBRE. “At the same time, many office markets are increasingly short of the quality, modern, flexible and highly accessible or CBD-located office buildings which corporations are seeking to execute workplace strategies that will drive productivity and attract or retain talent.”