LONDON—London's West End continued to bethe world's highest-priced office market but Asiadominated the world's most expensive office locations, accountingfor four of the top five markets, according to CBREResearch's semi-annual Global Prime Office OccupancyCosts survey.
The study also found that the real estate recovery in theIreland remained on track, withDublin (26.1%) and Belfast(13.3%) showing the largest and fourth-largest year-over-year primeoccupancy cost increases, respectively among the 127 citiessurveyed. In North America real estatefundamentals remained strong with Seattle(Downtown), San Francisco (Peninsula) andVancouver (Suburban) among the 10 markets with thefastest growing prime occupancy costs
London West End's overall prime occupancy costs of $267 persq. ft. per year topped the “most expensive” list.Hong Kong (Central) followed with total primeoccupancy costs of $254 per sq. ft., Beijing(Finance Street) ($196 per sq. ft.), Beijing(Central Business District) ($188 per sq. ft.) and NewDelhi (Connaught Place CBD) ($157 per sq. ft.) rounded outthe top five.
The change in prime office occupancy costs mirrored the gradualrecovery of the global economy. Global prime office occupancy costsrose 2% year-over-year, with the Americas up 2.9%, EMEA rising 1.5%and Asia Pacific up 1.4%.

“Occupier caution has declined and corporate confidence has beenon the rise and this confidence is starting to translate into adegree of expansionary momentum,“ said RichardBarkham Global Chief Economist, CBRE. “At the same time,many office markets are increasingly short of the quality, modern,flexible and highly accessible or CBD-located office buildingswhich corporations are seeking to execute workplace strategies thatwill drive productivity and attract or retain talent.”

CBRE tracks occupancy costs for prime office space in 127markets around the globe. Of the top 50 “most expensive” markets,19 were in EMEA, 20 were in Asia Pacific and 11were in the Americas.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.