Five of the six most expensive office spaces in the world are in Asia, according to a biannual report released today by CBRE.
This comes as no surprise, as demand by global companies to relocate to the rapidly developing Asian cities increases – often outstripping the supply.
The report identifies the highest dollar per square foot occupancy cost, spanning 127 business districts the world over. The final sum takes into account local taxes and service charges.
For the third consecutive time, Hong Kong’s Central business district has topped the list, with commercial space at the end of March averaging at $235.23 per square foot annually – leading London’s West End at $222.58. Beijing claimed the third and fourth positions, with Finance Street and the central business district at $195.07 and $187.06 per square foot respectively.
New Delhi’s Connaught Place saw occupancy at a considerable high of $178.96, and HK’s West Kowloon area at $173.90.
“Demand is coming from a lot of multinational corporations who want to place a stake into these developing economies,” said Raymond Torto, CRBE’s global chief economist. “When they look around some of these cities, they want to be in the best locations because there’s not a lot of good infrastructure. You want to be close to other business, and close to transportation. You also want to be in a quality property.”
Seventh is Moscow, followed by Tokyo’s Marunouchi/Otemachi district, and London’s City district. Midtown Manhattan made tenth place, at $120.65 per square foot.
The most significant increase came from Jakarta, with costs climbing 38.9 percent compared with just a year earlier.
Globally, occupancy costs rose by 1.4 percent.