London has retained its dubious accolade as the world’s most expensive office location, but Birmingham and Manchester are not far behind, according to a survey of 92 locations by DTZ.
The firm awarded first place to the West End, and second place to the City for having the most expensive occupancy cost in the world.
But large rental falls in several locations have pushed Birmingham and Manchester into the top ten for the first time in the six years that DTZ have been publishing the report. Birmingham now holds sixth position, while Manchester comes in at number 10.
John Forrester, head of occupier services at DTZ said: “The relatively high ranking positions of UK cities, whilst in the main due to falling rental values in other countries, can also be largely attributed to the following factors: strength of sterling, exclusion of incentives such as rent free periods on new lettings and, most importantly, maintenance cost and property taxes.
“The combination of these accounts for around 40% of occupancy costs in the UK – considerably higher than in other parts of the world.”
Elspeth Lochhead, director of DTZ Pieda Consulting, said: “Costs in a number of world cities have decreased – including London, Frankfurt, Dublin and downtown New York.
“Conversely, occupancy costs in a number of European cities have risen significantly, and in particular in Milan, Paris and many UK cities outside London.”
EGi News 02/01/03
