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CBRE Group released the Global Prime Office Occupancy Costs survey 2014

Dec 31, 2014 13:01 IST

Commercial property and real estate services consulting firm CBRE Group on 17 December 2014 released the semi-annual Global Prime Office Occupancy Costs survey 2014.

The study revealed the top 50 most expensive office markets in US dollars per square feet per annum. The research shows that London’s West End remained the world’s highest-priced office market with a rate of  273.63 US dollars per square feet per year.

In the Global Prime Office Occupancy Costs survey, CBRE tracks the occupancy costs for prime office space in 126 markets around the globe.

Top 10 Most Expensive Markets

Rank

Markets

Occupancy cost- US dollars per square feet per Year

1

London’s West End, United Kingdom

273.63 US dollars

2

Hong Kong – Central, Hong Kong

250.61 US dollars

3

Beijing- Finance Street, China

197.8 US dollars

4

Beijing- Central Business District, China

189.4 US dollars

5

Moscow, Russian Federation

165.05 US dollars

6

Connaught Place (CBD), New Delhi, India

158.47 US dollars

7

Hong Kong- West Kowloon, Hong Kong

153.65 US dollars

8

London City, United Kingdom

152.7 US dollars

9

Tokyo (Marunouchi Otemachi), Japan

136.46 US dollars

10

Shanghai (Pudong), China

127.89 US dollars


Europe Middle East and Africa (EMEA)
The region showed 0.3 percent year-over-year increase in prime occupancy costs which was primarily driven by buoyant conditions in United Kingdom cities and the strong recovery of the Dublin office market.

The main decreases were seen in central European markets, such as Warsaw where the economies are relatively healthy but new supply has driven down rents.

Only in a few markets, a robust recovery was observed notably Dublin and London. In addition to London West End, other markets from the region on the global top 10 list were Moscow and London City.

Asia Pacific
In Asia Pacific, 20 markets ranked in the top 50 most expensive markets. Hong Kong (Central) remained the only market in the world other than London’s West End with a prime occupancy cost exceeding 200 US dollars per square feet.

The most expensive market in the global ranking from the Pacific Region was Sydney in 19th place with the occupancy cost of 99 US dollars per square feet.

America
The study also revealed that prime rents are rising fastest in the America where real estate fundamentals continue to improve.

Overall, America accounted for five of the 10 markets with the fastest growing prime occupancy costs. These markets were Seattle (Suburban), San Francisco (Peninsula), Boston (Suburban), San Francisco (Downtown) and Seattle (Downtown).

Rio de Janeiro remained the most expensive market in Latin America with occupancy cost of 101 US dollars per square feet and ranking as the 18th most expensive market globally.

India
In India, Central Business District (CBD) of Connaught Place, Delhi ranked at the sixth position in the Top 10 most expensive prime office markets in the world with occupancy cost of around 160 US dollars per square feet.

Mumbai’s alternative business district of Bandra–Kurla Complex (BKC) remained at the sixteenth position. CBD of Nariman Point stood at the thirty-second position on the Top 50 rankings for global prime office properties.

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