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Top 20 Most Expensive Office Markets


The world's most expensive office markets has been revealed, with Hong Kong outpacing New York and London for a third consecutive year.

CBRE's annual Global Prime Office Occupancy Cost report, which outlines rent for prime office locations in 120 key markets, revealed that global occupancy costs rose 2.4 per cent in the 12 months ending June 2018, an increase on the 1.9 per cent growth rate of the previous year.

Despite a mild slowdown in the global economy, global growth stimulated robust leasing activity in the Asia Pacific (+1.7% increase) and EMEA (+2.0%) with occupancy costs in the Americas also increasing (+3.2%).

Nine of the top 10 most expensive locations have remained the same as last year, with London (City) returning after a brief hiatus.

Helped by the appreciation of sterling against the U.S. dollar, London (City) displaced Shanghai (Pudong) for the tenth position, reflecting robust professional services activity and relatively limited new supply.

London (West End) has also seen a strong rise in costs, retaining the second position, with a substantial construction pipeline of 510 towers that will transform the city over the next decade.

Sydney managed 20th position with prime occupancy costs of $102 per square feet per year.

CBRE also revealed the biggest movers in both directions.

Durban, South Africa, saw the largest 12-month increase, with occupancy costs in local currency rising 21.4 per cent due to strong growth in the finance, technology and e-commerce sectors.

Of the top 20 cities that experienced the largest increases over the past year, Melbourne ranked 13, experiencing a 10.8 per cent rise in occupancy rates.

Dubai, U.A.E., on the other hand, saw the largest year-over-year decrease, with occupancy costs falling 15.4 per cent possibly due to an excess inventory.

Auckland also saw a decrease of 0.4 per cent, sitting at 20th position, due to strong demand for new developments in the city's fringes and outer-suburbs.

Related: What Are the World's Most Expensive Cities?


20. Sydney

Sydney Office Market
Rent (per sq. ft.) AUD$136.67
Percentage Change (12 months in $)5.0%
Average lease terms8 years


19. New York (Downtown)

Downtown
Rent (per sq. ft.)AUD$137.29
Percentage Change (12 months in $)12.4%
Average lease terms10 years


18. San Francisco (Peninsula)

San Francisco
Rent (per sq. ft.)AUD$138.27
Percentage Change (12 months in $)6.6%
Typical lease terms5 years


17. Boston (Downtown)

Boston
Rent (per sq. ft.)AUD$139.08
Percentage Change (12 months in $)1.2%
Average lease terms10 yeards


16. Seoul (CBD)

Seoul
Rent (per sq. ft.)AUD$143.98
Percentage Change (12 months in $)$6.7%
Average lease terms3-5 years


15. Shanghai (Puxi)

Shanghai
Rent (per sq. ft.)AUD$144.89
Percentage Change (12 months in $)4.4%
Average lease terms2-3 years


14. Moscow

Moscow
Rent (per sq. ft.)AUD$144.91
Percentage Change (12 months in $)14.0%
Average lease terms3-5 years


13. San Francisco (Downtown)

San Francisco
Rent (per sq. ft.)AUD$152.61
Percentage Change (12 months in $)1.0%
Average lease terms5-7 years


12. Paris

Paris
Rent (per sq. ft.)AUD$161.87
Percentage Change (12 months in $)28.5%
Average lease terms3/6/9 years


11. Shanghai (Pudong)

Pudong
Rent (per sq. ft.)AUD$185.99
Percentage Change (12 months in $)3.7%
Average lease terms2-3 years


10. London (City)

London
Rent (per sq. ft.)AUD$194.31
Percentage Change (12 months in $)22.2%
Average lease terms10 years


9. New Delhi (CBD)

New Delhi
Rent (per sq. ft.)AUD$205.23
Percentage Change (12 months in $)-0.4%
Average lease terms3+3+3 years


8. Tokyo (Marunouchi/Otemachi)

Tokyo
Rent (per sq. ft.)AUD$229.89
Percentage Change (12 months in $)5.0%
Average lease terms5 years


7. New York (Midtown-South)

Midtown South
Rent (per sq. ft.)AUD$229.98
Percentage Change (12 months in $)9.8%
Average lease terms10 years


6. New York (Midtown)

New York Midtown
Rent (per sq. ft.)AUD$246.31
Percentage Change (12 months in $)-9.4%
Average lease terms10 years


5. Beijing (CBD)

Beijing
Rent (per sq. ft.)AUD$253.95
Percentage Change (12 months in $)11.4%
Average lease terms2-3 years


4.Hong Kong (Kowloon)

Kowloon
Rent (per sq. ft.)AUD$254.11
Percentage Change (12 months in $)11.2%
Average lease terms3 or 6 years


3. Beijing (Finance Street)

Beijing
Rent (per sq. ft.)AUD$269.33
Percentage Change (12 months in $)AUD$269.33
Average lease terms2-3 years


2. London (West End)

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Rent (per sq. ft.)AUD$315.04
Percentage Change (12 months in $)20.6%
Average lease terms10 years


1. Hong Kong (Central)

Hong Kong Central
Rent (per sq. ft.)AUD$410.97
Percentage Change (12 months in $)1.6%
Average lease terms3 or 6 years
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Article originally posted at: https://www.theurbandeveloper.com/articles/the-top-20-most-expensive-office-markets

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