The most expensive office space in the world

London’s West End is the world’s highest-priced office market, according to the Global Prime Office Occupancy Costs survey run by CBRE Global Research and Consulting, charging occupancy costs of US$277 per square foot per year.

Hong Kong (Central) followed with total occupancy costs of US$242 per square foot; Beijing (Finance Street) ranked third at US$194 per square foot; Beijing (Central Business District) follows at US$187 per square foot; and Moscow rounds out the top five at US$165 per square foot.

According to CBRE, global prime office occupancy costs rose 2.3% year-over-year led by the Americas (up 3.3%) and Asia Pacific (up 2.9%).

The EMEA region, however, was essentially flat, edging down 0.1% year-over-year.

“We believe that occupancy costs are poised to accelerate in the latter part of 2014. Even though occupiers remain cost conscious, demand for prime office space is continuing to increase,” said Dr. Raymond Torto, Global Chairman, CBRE Research.

“With the exception of a few markets, mostly in Asia Pacific, there is not a sufficient volume of new construction to meet demand.”

“As such, market rents for prime properties are expected to continue rising, which, coupled with the higher cost of operating office buildings, will push up occupancy costs in most markets in the coming months,” Torto said.

CBRE tracks occupancy costs for prime office space in 126 markets around the globe. Of the top 50 “most expensive” markets, 21 were in EMEA, 20 were in Asia Pacific and 9 were in the Americas.

No African cities are ranked within the top 50 most expensive office markets in the world.

20 most expensive office markets, at March 2013

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