The Most Expensive Office Rentals In The World
Oct 20th, 2017
Central Hong Kong and the West End in London remain on the top of CBRE’s global list for the highest office rental expenses. According to the latest research data of the real estate advisors, in central Budapest, the tenants need to pay less than tenth of the expenses in London.
“The global top-ten list reflects the ongoing strength of global gateway cities in attracting and maintaining a successful occupier base,” said Richard Barkham, global chief economist, CBRE. The list ranks the districts of the world’s largest cities based on the occupancy costs, that includes rent, local taxes as well as service fees.
Hong Kong and London remained the two most expensive office locations in the world. Hong Kong Centralʼs overall prime occupancy costs came to USD 3,256 per sqm per year, followed by London’s West End (USD 2,302 per sqm), New York Midtown (USD 2,183 per sqm), Hong Kong West Kowloon (USD 2,045 per sqm) and Beijingʼs CBD (USD 1,971 per sqm).
Growing Office Rental Prices All Over the World
Durban (South Africa) had the highest increase in occupancy cost overall, though Stockholm (Sweden) registered some of the fastest growth in Europe, along with Palma de Mallorca (Spain), Belfast (United Kingdom) and Amsterdam (Netherlands)also showed double-digit growth, with Lyon (France) and Berlin (Germany) not far behind.
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 United States.CBRE tracks occupancy costs for prime office space in 121 markets around the globe. Of the top 50 “most expensive” markets, 21 were in Asia Pacific, 16 were in EMEA and 13 were in the Americas.
In London’s West End, the fall in occupancy costs is largely due to a fall in rents triggered by more subdued demand, particularly amongst financial occupiers who have become less willing to pay the high rents prevailing in London’s premier market. London (City) was pushed out of the top-ten most expensive markets to 11th place, despite prime office costs rising by 2.9%.
Sources: piacesprofit.hu, bbj.hu
https://bbj.hu/real-estate/annual-prime-office-occupancy-costs-total-usd-197-sqm-in-budapest-_135131
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