CBRE: Top 10 most expensive office markets globally

24 June 2015

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.

Top 10 Most Expensive Office Markets

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%).

Top 5 Decreases and Increases

The global average for prime office occupancy costs rose 2.0% year-over-year, slightly down from the 2.5% in Q3 2014, which according to CBRE mirrors the gradual recovery of the global economy.

“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.”



Ensuring data quality imperative for smart asset management

25 March 2019

By implementing innovative Asset Performance Management systems, utilities firms can maximise their utilisation of assets and minimise maintenance costs across their portfolio. However, according to Louis Morgan of Smart Grid Forums, without securing quality management systems for the data which smart grids rely upon, companies risk missing out on the benefits of asset performance grids.

Smart asset management presents a major opportunity to professionals across the business spectrum. In this context, a new event hosted in London is looking to help smart-grid asset management professionals meet the needs of a changing energy industry with digital asset management. The first annual Grid Asset Management event is due to take place between the 14-16th of May 2019 at the Millennium Hotel in Knightsbridge, London.

The conference will bring together leaders and experts from across Europe, in order to benchmark their digitalisation roadmaps. In a piece posted on the Smart Grid Forums website ahead of the event, Louis Morgan, a Conference Producer at Smart Grid Forums, has outlined the importance of investing in innovative asset performance technology for utilities firms, which can help ensure long-term stability for assets management in the utility sector in the face of increased complexity  .

Ensuring data quality imperative for smart asset management

Traditionally, the decision to invest in a given asset was made on the basis of an expert’s judgement of the risks posed by its failure, having typically been assessed via a risk matrix or a similar qualitative method. After that, a decision would be taken as to whether it should be replaced. However, according to Morgan, as the pace of change and complexity increases, these methods can no longer provide the required level of certainty. Uncertainty about changes to consumption patterns and load profiles brought on by the energy transition produces a vast number of possible scenarios that investment planners must consider.

As a result, Morgan explained, “utilities are seeking to support their investment decisions with quantitative risk management methods, centralising expertise from across their operations into a consistent, numerical framework that accurately captures the risk posed by all kinds of asset failure to all stakeholders.”

Companies are doing this by turning to ‘smart grid’ utility management, or systems which work to invest in the maintenance and replacement of millions of assets spread across thousands of kilometres of network. However, this is by no means a silver bullet, and in the age of the smart grid, planning ahead is more complex than ever. To ensure the long-term stability of their grids, then, utilities must deploy standardised investment decision-making practises supported by advanced modelling capabilities.

Morgan elaborated that the best way of facing this problem is through the combination of condition, utilisation, reliability and demand data. In that case, risks can be quantified in financial terms and investment budgets can target the assets posing the highest total risk, thus deferring investment in lower risk assets and optimizing the long-term budget. However, decisions informed by these risk models “will only be as good as the data and the assumptions that support them”, meaning utilities must therefore find ways to improve the volume, variety, veracity and velocity of the data they employ in their investment planning models.

“This means digitalizing asset operations, rolling out sensors and implementing systems that integrate data from a range of internal and external sources in real-time,” Morgan expanded. “Utilities must also scour their business for expertise about different assets to ensure that their risk management frameworks accurately capture the true risks posed by asset failures.”

This is in keeping with a trend which goes well beyond utilities. Business leaders of all shapes and sizes are currently having to address how they manage data quality – as poor information being input into any automated system can essentially negate the efficiencies such systems bring to the table. To this end, robust data governance is critical.

Concluding his article, Morgan said, “It is clear that there is a great deal of opportunity for utilities to obtain significant business benefits from improving their investment planning capabilities. More accurate risk management, supported by a reliable data-driven method, will deliver better financial outcomes from investment activity... But to achieve these capabilities, a lot of work must be put in to establish the systems, processes and frameworks which underlie them. Utilities must also make difficult choices about how they quantify risk and the appropriate range of data to feed into their investment planning models.”

This topic will be tackled in-depth at this year’s Grid Asset Management 2019, a conference, exhibition and networking forum aimed solely at smart grid asset management professionals.