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Where are the most expensive offices for rent?

According to the report Global Prime Office Occupancy Costs, the most expensive office location in the world second year in a row is London West End district.

According to the report Global Prime Office Occupancy Costs prepared by Global Department of Consultancy and Market Research in CBRE, the most expensive office location in the world second year in a row is London West End district. The average lease costs are oscillating at the level of 219 EUR/sq. m/month. The second place belongs to Hong Kong (Center), where costs of renting amount to averagely 216.50 EUR/sq. m/month. The cutting edge is closed by the Financial Street in Beijing where tenants have to pay rents in the amount of 153.50 EUR/sq. m/month. The fourth most expensive office location in the world is the Central Business Area in Beijing where the average lease costs amount to 147 EUR/sq. m/month. The fifth place belongs to Hong Kong West Kowloon with prices amounting to 130.25 EUR/sq. m/month.

 

The most expensive office locations in the world (in EUR/sq. m/month):

Location

Price

London - City Center (West End), Great Britain

219,00

Hong Kong (City Center), Hong Kong

216,50

Beijing (Financial Street), China

153,50

Beijing (CBD - Central Business District), China

147,00

Hong Kong (West Kowloon), Hong Kong

130,25

New Delhi (Connaught Place - CBD), India

121,58

Tokyo (Marunouchi Otemachi), Japan

119,75

London - City Center (City), Great Britain

119,42

Shanghai (Pudong), China

108,33

New York (Midtown Manhattan), USA

101,75


Source: CBRE, 2015

 

According to the research of CBRE, all lease costs borne by entrepreneurs in Warsaw amount to over 33 EUR/sq. m/month, which allowed the Polish capital to occupy the 79th place in the survey. It means that the capital city was 6 positions higher in comparison to the ranking from the first quarter of 2015 whereas it decreased by 8 positions year-on-year. Among cities from the region of Central and Eastern Europe, Warsaw is on the second place after Moscow which occupies the eleventh place in the ranking of the most expensive office location in the world.

 

The highest rent rates in Warsaw slightly declined from 2012 and they currently amount to 24 EUR/sq. m/month after deduction of other lease costs. We forecast that this trend will maintain in the following year. There are many good projects on the market and thus the rent rates for better areas will remain the same. One thing that may change is disproportion between the highest values and the available values for areas class B or those located outside the city center. Other lease conditions such as periods of exemption from rent and the amount of financial contributions of the owner in arrangement of space are more subjected to changes than rent rates – says Katarzyna Gajewska, Consultant, Department of Consultancy and Market Analyses, CBRE.

 

According to the report, Warsaw is ninth in the world taking the location with the biggest decline in lease costs into account (year-on-year).

 

CBRE analyzed lease costs in the best office locations in 126 cities all over the world for the purpose of the report. There are 19 markets from the EMEA region, 20 from Asia and Pacific and 11 from both Americas in the first fifty.

 


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