Hong Kong’s Central topped the list with prime
office occupancy costs reaching US$303 per sq. ft. per annum, followed by London’s
West End (US$213.85 per sq. ft.) and New York’s Midtown Manhattan (US$203 per
sq. ft.). Hong Kong’s West Kowloon (US$190 per sq. ft.) dropped one place to 4th
while Beijing’s CBD (US$183 per sq. ft.) rounded the top five.
occupancy costs for prime office space in 121 markets around the globe. This
year’s top 10 list remains largely unchanged, highlighting the strength of
gateway cities in attracting and maintaining a successful occupier base.
A office rents in Central have increased by 3% in the first five months of 2017,
due largely to the exceptional low vacancy rate (1.5%) and robust demand from
mainland corporations,” said Darren
Nugent, Executive Director, Advisory & Transaction Services - Office, CBRE
was home to seven of the top 10 most expensive markets—Hong Kong (Central),
Hong Kong (West Kowloon), Beijing (CBD), Beijing (Finance Street), Tokyo
(Marunouchi/Otemachi), New Delhi (Connaught Place - CBD), and Shanghai (Pudong).
(Puxi) in China had the highest growth in occupancy cost, followed by
Guangzhou, Bangalore and Shanghai (Pudong).
costs continued to fall, thanks to increased supply of office stock and weak
levels of inflation.
Top 20 Most Expensive Office Markets
US$ per sq. ft. per annum)
Rank (Q1 2017)
Hong Kong (Central), Hong Kong
London (West End), United Kingdom
New York (Midtown Manhattan), U.S.
Hong Kong (West Kowloon), Hong Kong
Beijing (CBD), China
Beijing (Finance Street), China
Tokyo (Marunouchi/Otemachi), Japan
New York (Midtown-South Manhattan), U.S.
New Delhi (Connaught Place - CBD), India
Shanghai (Pudong), China
London (City), United Kingdom
Moscow, Russian Federation
Shanghai (Puxi), China
San Francisco (Downtown), U.S.
Dubai, United Arab Emirates
Boston (Downtown), U.S.
Seoul (CBD), South Korea
Mumbai (Bandra Kurla Complex), India
Source: CBRE Research, Q1 2017.
Largest Annual Changes
(In local currency and measure) Top 5 Increases
Durban, South Africa
Buenos Aires, Argentina
Denver (Suburban), U.S.
Palma de Mallorca, Spain
Top 5 Decreases
Moscow, Russian Federation
Calgary (Downtown), Canada
Note: The full Top 50 Most
Expensive Markets chart is located at the end of this press release.
The GlobalPrime Office Occupancy
Costs report is a survey of office occupancy costs for prime office space
in 121 cities worldwide.
The latest survey provides data
on office rents and occupancy costs as of March 31, 2017.
Largest Annual Changes rankings are based upon occupancy costs in local
currency and measure. The Most Expensive ranking is based upon occupancy costs
in US$ per sq. ft. per annum.
The figures given in this release
refer to occupancy cost. This represents rent, plus local taxes and service
charges. The occupation cost figures have also been adjusted to reflect
different measurement practices from market to market.
Due to methodology changes,
comparisons with figures in previously released reports are not valid.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.