The CB Richard Ellis Group (CBRE) Research on 18 June 2015 released the Global Prime Office Occupancy Costs survey. CBRE is an American commercial real estate company based in Seattle.
The survey listed out top 50 expensive office market spaces by surveying 127 markets around the globe.
In the survey, while London’s West End continued to be the world’s highest-priced office market, Connaught Place (CP) –Central Business District (CBD) in New Delhi was the fifth costliest office market in the world.
The cost of office space represents office rents and occupancy costs that include rent, plus local taxes and service charges per square feet per year as of 31 March 2015.
Highlights of Global Prime Office Occupancy Costs survey
• London West End’s overall prime occupancy costs of 267 US dollars per sq. ft. per year topped the most expensive list.
• Hong Kong (Central) followed with total prime occupancy costs of 254 US dollars per sq. ft., Beijing (Finance Street) (196 US dollars per sq. ft.), Beijing (Central Business District (CBD)) (188 US dollars per sq. ft.) and New Delhi(Connaught Place –CBD) (157 US dollars per sq. ft.) rounded out the top five.
• 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 sq. ft per year.
• Of the top 50 most expensive markets, 19 were in EMEA, 20 were in Asia Pacific and 11 were in the Americas.
• Global prime office occupancy costs rose 2.0 percent year-over-year, with the Americas up 2.9 percent, Europe Middle East & Africa (EMEA) rising 1.5 percent and Asia Pacific up 1.4 percent. The report said the change in prime office occupancy costs mirrored the gradual recovery of the global economy.
• Asia dominated the list accounting for four of the top five markets
• Asia Pacific had 20 markets ranked in the top 50 most expensive, including six of the top 10—Hong Kong (Central), Beijing (Finance Street), Beijing (CBD), New Delhi (Connaught Place - CBD), Hong Kong (West Kowloon) and Tokyo (Marunouchi Otemachi).
Indian cities in the Survey
• Connaught Place (CP) –Central Business District (CBD) in New Delhi was the fifth costliest office market in the world.
• CP-CBD moved up a spot in the rankings due to rupee depreciation when compared to the previous list of semiannual survey.
• Bandra-Kurla Complex (BKC), the alternative business district in Mumbai, was at the 15th position with a cost of 102 US dollars per sq. ft per annum) and Mumbai’s CBD of Nariman Point (76 US dollars per sq. ft per annum) was at 30th position.
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When: 18 June 2015