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Recent property research, by CBRE Global, highlights the variation in cost of commercial property throughout the world.
Once again, London’s West End tops the chart as highest-priced office market in the world, with costs of £164 per square foot per year, and significantly more expensive than Hong Kong, which was in second place.
The unsurprising position for Central Hong Kong was a result of its costs of £142 per square foot, whicl two distinct areas of Beijing took third and fourth places, at £114 and £110 respectively. Moscow took fifth position and the UK’s other member of the list, London City, came in at seventh.
Raymond Torto, Global Chairman of CBRE Research, commented that, based on these figures and associated analysis, occupancy costs are likely to rise as 2014 progresses, because of steady or increasing demand despite a cost-conscious approach by many businesses in recent years. This is combined with an inability of construction to meet this demand in countries throughout the world – although less so in Asia Pacific. Torto also pointed out the global increase in costs of running of buildings, which need to be passed on to occupiers, increasing service charges.
The world figures showed that global prime occupancy costs for offices rose 2.3%, with the Americas above the average at 3.3% up from last year. Asia Pacific followed at 2.9%. Africa still does not play a part in these figures, with no African cities in the top 50 most expensive office markets.
The West End has retained this status since early 2013, when Morgan Pryce reported the reversal in positions between the West End and Hong Kong, from the end of 2012 to early 2013.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.