The Global Department for Consultancy and Market Research in CBRE published a report called Prime Office Occupancy Costs in which it presents the costs of lease in the best offices in 127 cities all over the world in March 2015. The most expensive office location in the world is again the West End district in London. The average lease costs in the offices located there amount to ca. 223 EUR/sq. m/month. On the second place is the center of Hong Kong with average prices totaling 212 EUR/sq. m/month and on the third place is Financial Street in Beijing where tenants have to pay the rents in the amount of 163 EUR/sq. m/month. Moreover, there is the fourth most expensive office location in Beijing – Central Business District with rents in the amount of 131 EUR/sq. m/month.
According to the research conducted by CBRE, all lease costs borne by entrepreneurs in Warsaw amount to ca. 34 EUR/sq. m/month which allowed the Polish capital to take the 85th position. Taking the report from the third quarter of 2014 into consideration, it indicates a decrease by 14 places and 25 in comparison to year-on-year. Warsaw is seventh among metropolises in which the decrease in lease costs is the most noticeable.
The CBRE ranking considers all costs which have to be borne by tenants in order to rent an office in the best buildings in Warsaw. Since many buildings are realized in the city center right now, we may notice a significant decrease in rents in crucial locations. We envisage that rises will be recorded at least till the end of 2015 – the first half of 2017 when the largest new buildings such as Q22 or Warsaw Spire will be rented. Moreover, we may expect a gradual stabilization in the nearest years – believes Joanna Mroczek, Chairman in Department for Market Research and Marketing in CBRE.
We have had a market of tenants who benefit from a significantly wide offer on the market for several years. More and more companies are able to afford a location near the city center in better buildings. On the other hand, new projects are also becoming more and more advanced in respect of technique and visualization and older buildings have to enhance their standards in order to meet competition. Therefore, the market imposes even more higher level of the offer and both tenants and all inhabitants of the capital may benefit from it. The decreasing rents do not indicate stagnation in that case and even opposite – increased activity of companies which are looking for a new headquarters – adds Łukasz Kałędkiewicz, Senior Director in Department for Office Areas in CBRE.
CBRE researched lease costs in the best office locations in 127 cities all over the world. In the first 50th there are 19 markets from the EMEA region, 20 from Asia and Pacific as well as 11 from both Americas.
The most expensive office locations in the world (EUR/sq. m/month):
|London (West End), Great Britain||223|
|Hong Kong (Center) Hong Kong||212|
|Beijing (Financial Center), China||163|
|Beijing (Center), China||157|
|New Delhi (Connaught Place - Center), India||131|
|Hong Kong (West Kowloon), Hong Kong||125|
|Tokyo (Marunouchi Otemachi), Japan||120|
|London (City), Great Britain||119|
|New York (Midtown Manhattan), USA||106|
Locations with the highest increase in lease costs:
|Seattle (Midtown), USA||22,2%|
|Panama City, Panama||17,6%|
|Belfast, Great Britain||13,3%|
Locations with the highest decrease in lease costs:
|Buenos Aires, Argentina||-10,8%|
|Hong Kong (West Kowloon), Hong Kong||-6,6%|
|Calgary (Midtown), Canada||-4,9%|
The annual percentage changes of lease costs are on local currencies thanks to which the change of values concerning currencies did not have an influence on them. The pay rates of total lease costs were calculated on EUR/sq. m/year.
The full report in English is available below.