London’s West End and the City remained the most expensive office districts in western Europe in 1999, according to research by DTZ Debenham Tie Leung, C Y Leung and Edmund Tie & Company.
Their report on world office costs reveals that the West End is the second most expensive district in the world after Tokyo’s Central 5 Wards. The West End’s status remained unchanged in 1998.
Edinburgh, Paris and Birmingham followed West End and the City as the most expensive office districts in Western Europe, beating off Germany’s Berlin, Munich and Frankfurt. Lack of quality offices could push up occupancy costs in all western European cities this year, according to the survey.
The report covers 76 districts in 72 cities worldwide. It reflects the occupier’s viewpoint by measuring occupancy costs as opposed to rents. It is defined as the average total cost in leasing new office space in a prime central business district location with a lettable area of around 929m2.
Strong demand in the USA led to escalating costs in 1999. New York (Mid-town), Boston, San Francisco, and Washington continued to rank as the most expensive centres in the USA.
Occupancy costs in eastern and central Europe declined last year. Moscow remains the most expensive office centre in this region, ahead of Warsaw and Prague.
