Companies looking to occupy prime office space in the world’s top markets should expect to pay a premium, according to CBRE’s June 2015 Global Prime Office Occupancy Costs report. This semi-annual report details how real costs — reflecting rent plus additional service charges and taxes — have evolved over the last year, with each global region telling a slightly different story of recovery and economic conditions.
According to the report, 62 percent of the 127 office markets that were surveyed recorded an annual increase in prime occupancy costs.
For example, job gains in the U.S. have driven up rents for high-quality space, while the Eurozone economy’s rebound has triggered demand for office space across that region. And despite mixed demand from occupiers across Asia, six of the most expensive markets were in that region.
According to the report, 62 percent of the 127 office markets that were surveyed recorded an annual increase in prime occupancy costs, highlighting the slow but steady recovery of the global office sector.
Just how pricey are these markets? Companies based in the West End of London, the most expensive office market in the world, pay an average of US$267 per square foot. Elsewhere, office space in Hong Kong’s Central District goes for US$254 per square foot, while space in Midtown Manhattan can be had for US$127 per square foot.
Take a tour of the most expensive office markets in the world through the slideshow below.