Hong Kong and the West End of London are the world’s two most expensive areas in which to rent office space, according to the latest numbers on the subject from global real estate advisory powerhouse CB Richard Ellis (CBRE).
Tokyo come third in the list that showed a continuing trend towards offices in the Asia-Pacific region picking up the pace as far as office rental increases are concerned. The top ten most expensive cities for office renting are now to be found in the region, with Beijing’s central business district very much up there and featuring at fourth in the list.
“The most expensive office markets are increasingly located in dynamic business centres across emerging economies as office occupiers diversify their global footprints in these markets to take advantage of rising incomes and the availability of labour,” commented Dr Raymond Torto, chief global economist at CBRE.
“The most expensive office occupier markets also have a diversified economic base; limited, available institutional quality space; strong currencies and are increasingly located in urban centres,” he said.
Moscow was rated as the fifth most expensive place to rent offices anywhere in the world by CBRE, with Asia-Pacific and the Europe, Middle East and Africa (EMEA) market contributing equally to the top 50 with 19 cities each.
CBRE’s chief EMEA economist Peter Damesick suggested that the economic struggles of countries like Italy, Spain and Greece will eventually result in their increased competitiveness as office space markets with occupancy costs likely to decrease across their major cities.
And while the West End of London remains the second most expensive office space market in the world, offices in the City of London are reportedly increasingly being taken up more by technology companies than by finance firms as has traditionally been the case.