London has retained its position as the worldâ€™s most expensive city for office space, according to Business Space Across the World, the annual report by international property consultant Healey & Baker and its global partner Cushman & Wakefield.
Occupiers of prime office space in London can expect to pay average total occupancy costs (rent, property taxes and service charge), of â‚¬ 1,728 per sq m per year. Tokyo retains its second place at â‚¬ 1,213, with Paris moving into third place at â‚¬991. While both London and Tokyo have seen a decline in rents over the year, London has still increased its lead over the other cities.
Overall, the research looks at 45 countries around the world, analysing the total costs of occupying office space in 100 locations. The league table is compiled by taking the most expensive location for total office occupancy costs in each country.
Other main findings for the worldâ€™s top office locations:
* Average vacancy rates moved up from 3.75% to 5.4%.
* Overall rents showed marginal growth over the year of 1.5% - compared with 15% in 2000.
* Double digit rental growth in Italy, Luxembourg, France and Norway was cancelled out by similar sized falls in Switzerland, Sweden and Turkey.
* Central and Eastern European markets performed relatively well with increased take-up in Budapest, Moscow and Bratislava.
* Rents were largely static in Central and Eastern Europe but Moscow rents rose by 18% over the year.
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(source: Healey & Baker)