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TOKYO-According to CB Richard Ellis Group Inc.’s Global Office Occupancy Costs survey, Tokyo’s Inner Central District is the most expensive office market in the country at $183.62 per square foot. London’s West End still holds a hearty second, however at $172.62 per square foot, with Moscow nipping at its heels pricing at an average of $170.24 per square foot.

“Financial centers have been most significantly affected by declining occupier demand,” the report explains, pointing out that the most material decreases were in office rents. The interdependent global economy has found itself at the mercy of a faltering Wall St. and as the report has measured 170 cities across the globe, office occupancy costs fell 2.8% over a 12-month period that ran until the end of March 2009. This drop stands in contrast with an 8% gain from the same cities over another 12-month arc ending in Sept. 30th of 2008.

With the top two cities scoring a dual mention–Tokyo and London–no US city even landed in the top ten. Regardless of its dubious mention in the number one slot, Tokyo’s Outer Central area fell into the number five slot and London’s City coming in under the gun at number nine. Respectively, their rents were, on average, $149.58 and $103.50 per square foot.

There were a few rises in occupancy costs were measured in places like Charlotte, NC; Marseille, France; and Perth, Australia, however the report notes that these were more likely due to the completion of “top quality new building” where none previously existed or particularly unique market conditions. The steepest declines came from London’s West End, Moscow, Oslo and New York City’s Midtown markets. Although, New York City’s Midtown is the most expensive market in the US, it ranked only 21st in the global survey, while Boston’s suburban market dropped just shy of 30%, putting it number four on the list of top decreases. According to the report, the top five decreases were Singapore, New York City’s Midtown, Hong Kong’s CBD, Boston’s suburban and Hong Kong, again, but this time City Wide.

“The great global recession has clearly taken its toll on the world’s office markets, particularly those with significant concentrations of financial industry employers,” says Raymond Torto, CBREs Global chief economist, in a statement. “The most expensive office markets, as measured in dollars, are considerably less expensive than a year ago and occupiers are now in a strong position to procure prime space at attractive costs.” He cites London’s West End an area that has seen prices nearly halved over the last year.

The top ten most expensive markets across the globe and their average price per square foot, according to CBRE’s report are, in order: Tokyo Inner City, $183.62; London West End, $172.62; Moscow, $170.24; Hong Kong CBD, $150.42; Tokyo Outer Central, $149.58; Mumbai, $131.04, Dubai, $122.52; Paris, $114.89; London’s City, $103.50; and Dublin, $93.56.

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