Global Advisory and Market Research Section of CBRE released a report, ”Prime Office Occupancy Costs" - Cost of rent in the best locations in the world. The first ten places were actually dominated by the countries of Asia and the Pacific area. The largest increase in rental rates - 36.4% compared to the year 2011 - occurred in the United States, mainly in the central area of San Francisco, where the driving force was the technology sector.
The most expensive office buildings in the world
The most expensive office location in the world is Hong Kong, London's West End took second place and Warsaw ranks 64th place.
The ranking of the most expensive offices begins with the main business district of Hong Kong, with annual costs by an average of 2 061 Euro / sq m. Second place belongs to London's West End, the third place was taken by Tokyo (Marunouchi Otemachi). Next places were taken by the central business district (CBD) in Beijing and CBD in New Delhi. In the top ten, European cities such as Moscow took 8th place and London City financial district is on 9th.
In a global perspective rents have increased by an average of 2.1%. Leaders are the Americas (average increase of 5.2%) and Asia & Pacific area (2.6%). Due to the recession in many European countries, the region experienced a decrease in rents of 0.4% in the best office localizations.
Warsaw took 64th place on the list of the most expensive office locations. The total cost of the lease in the best places amounted to 440 Euro / sq m / year. In the ranking of July 2012, the city was also at the 64th place, while in the previous years, Warsaw was on 45th and 50th place.
Over the past year, the revival of the global market for office space has been somewhat cooled by the ongoing debt of European countries, a slowdown in the growth of emerging markets and the general uncertainty that creates "fiscal cliff" in the United States - said Dr. Raymond Torto, CBRE's Global Economist - However, the strong condition of the market, strong demand for modern office space and a low supply of new projects, will continue to affect the increase in rents in many of the best office locations around the world.
Konrad Heidinger, Consultant in section of consulting and market research of CBRE in Poland, said: The total cost of lease of best office space in many European business centers recorded a strong decline, especially in those countries whose fiscal problems are most evident. Almost double-digit reductions in the last year took place in the Greek and Spanish cities (Thessaloniki, Athens and Malaga). The entire cost of the rental sector of EMEA decreased on average by 0.4% in annual terms. At the same time, the costs increased in Warsaw by just over 3%, mainly due to an increase in rents in prime locations. This is another proof of the fact that the office market in the capital is in a very good shape, even though uncertain signals from the economy.
The report was conducted in 133 locations around the world. In the first 50, there were 19 locations of EMEA area, 18 in Asia-Pacific area and 13 in the Americas.
10 most expensive office locations in the world
1. Hong Kong (center), Hong Kong, 2 061 EUR / sq m / year
2. London - City Center (West End), the United Kingdom, 1 864 EUR / sq m / year
3. Tokyo (Marunouchi Otemachi), Japan, 1 650 EUR / sq m / year
4. Beijing (CBD), China, 1 547 EUR / sq m / year
5. New Delhi (Connaught Place - CBD), India, 1 534 EUR / sq m / year
6. Beijing (Financial Street), China, 1 502 EUR / sq m / year
7. Hong Kong (West Kowloon), Hong Kong, 1 457 EUR / sq m / year
8. Moscow, Russia, 1 446 EUR / sq m / year
9. London - City (City District), United Kingdom, 1 118 EUR / sq m / year
10. Sao Paulo, Brazil, 1 088 EUR / sq m / year
Full version of the report in PDF format below