Hong Kong has replaced London’s West End as the world’s most expensive office market, according to Cushman & Wakefield’s Office Space Across the World report.
The cost of a London workstation has fallen by 19% since 2016 to an average of $22,665 (£17,000) – although this is still 25% more expensive than a workstation in Tokyo, which ranks third globally at $18,111.
Meanwhile, Hong Kong’s costs rose by 5.5% to $27,431.
The average annual cost of a workstation across the globe rose by 1.5% in the past 12 months, although it fell by 1.3% in EMEA. Currency fluctuations were responsible for the biggest changes in the rankings – particularly in London – the report said.
In the UK, Manchester has the second most expensive office space at $6,766, closely followed by Edinburgh and Birmingham. Globally, however, they rank between 46 and 48 out of 215 office markets.
The tech boom means more firms are taking space outside major global cities such as Hong Kong and London, and remote working has led to price hikes in what are traditionally secondary cities.
Sophy Moffat, associate director on the EMEA research and insight team at Cushman & Wakefield, said: “Hong Kong and London are by far the most expensive office markets in which to accommodate staff but secondary cities are beginning to compete in the digital age in ways not possible during the industrial age.
“As workstation costs rise, it’s crucial that employers get the most of their workforce by providing work environments to help attract and retain the best talent in a globally competitive marketplace.
“As competition heightens between spaces and cities, consideration of user experience and employee well-being is imperative.”
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