Hong Kong and London’s West End have topped the list of prime office occupancy costs again, according to CBRE Research’s latest annual Global Prime Office Occupancy Costs report.
Hong Kong Central’s overall prime occupancy costs of $303 (£239) per sq ft pa were the most expensive in the world, followed by London’s West End at $214 per sq ft pa.
New York’s Midtown came in at $203 per sq ft, followed by Hong Kong’s West Kowloon district at $190 per sq ft and Beijing’s central businesses district at $183 per sq ft.
“The global top 10 list reflects the ongoing strength of global gateway cities in attracting and maintaining a successful occupier base,” said Richard Barkham, global chief economist at CBRE.
Global prime office occupancy costs – which reflect rent plus local taxes and service charges for the highest quality office properties – rose by 1.9% year-over-year, with the Americas up by 3.6%, EMEA up by 0.8% and Asia Pacific up by 1.2%.
Durban in South Africa had the highest increase in occupancy costs overall, though Stockholm in Sweden registered some of the fastest growth in Europe, along with Palma de Mallorca in Spain, Belfast and Amsterdam.
In Asia Pacific, Shanghai had the highest growth in occupancy costs, followed by Guangzhou and Bangalore.
Buenos Aires showed the biggest increase in the Americas overall, while suburban Denver, suburban Houston and New York Midtown South saw the largest occupancy cost increases in the US.
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