London’s West End remains the world’s most expensive office market, despite the rest of the top five now being in Asia.
According to CBRE research, occupancy costs in the West End came in at $267 per sq ft, with Hong Kong Central following at $254 per sq ft. Beijing’s Finance Street and CBD and Delhi’s Connaught Place rounded out the top five.
Global prime office occupancy costs overall rose 2.0 percent over the last year, up 2.9% in the Americas, 1.5% in EMEA and 1.4% in Asia Pacific, with the change in prime office occupancy costs mirroring the gradual recovery of the global economy.
Markets with the fastest growing costs Include Dublin, Seattle and Panama City. Dublin and Belfast saw costs rise 26.1% and 13.3% respectively, the largest and fourth-largest annual cost increases.
Richard Barkham, CBRE’s global chief economist, said: “Occupier caution has declined and corporate confidence has been on the rise and this confidence is starting to translate into a degree of expansionary momentum.
“At the same time, many office markets are increasingly short of the quality, modern, flexible and highly accessible or CBD-located office buildings which corporations are seeking to execute workplace strategies that will drive productivity and attract or retain talent.”
The Global Prime Office Occupancy Costs survey tracks occupancy costs for prime office space in 127 markets around the globe. Of the top 50 “most expensive” markets, 19 were in EMEA, 20 were in Asia Pacific and 11 were in the Americas.
