London’s West End remained the world’s highest-priced office market but Asia continued to dominate the world’s most expensive office locations, accounting for three of the top five markets, according to CBRE Research’s semi-annual Global Prime Office Occupancy Costs survey.
The study also found that prime rents are rising fastest in the Americas, where real estate fundamentals continue to improve.
Overall, the U.S. accounted for five of the 10 markets with the fastest growing prime occupancy costs. These markets were Seattle (Suburban), San Francisco (Peninsula), Boston (Suburban), San Francisco (Downtown) and Seattle (Downtown). Warsaw, Poland, was ranked number 71 in this ranking.
London West End’s overall prime occupancy costs of €2,541/m²/year topped the most expensive list. Hong Kong (Central) followed with total prime occupancy costs of €2,337/m²/year, Beijing (Finance Street) (€1,843/m²/year), Beijing (Central Business District (CBD)) (€1,759/m²/year) and Moscow (€1,536/m²/year rounded out the top five.
The change in prime office occupancy costs mirrored the gradual, multi-speed recovery of the global economy. Global prime office occupancy costs rose 2.5% year-over-year, led by the Americas (up 4.1%) and Asia Pacific (up 2.8%). Meanwhile, EMEA was essentially flat, edging up 0.3% year-over-year.
CBRE tracks occupancy costs for prime office space in 126 markets around the globe. Of the top 50 “most expensive” markets, 20 were in EMEA, 20 were in Asia Pacific and 10 were in the Americas.