Dublin office rents
are the 12th highest in the world and London’s West End is once again
the world’s most expensive office market, while rapidly-rising Moscow
climbed to second place, according to CB Richard Ellis Group, Inc. (CBRE)
Research’s semi-annual Global Market
Rents survey. The report tracks world markets with the
highest as well as fastest-growing occupancy costs for the 12 months
ended March 31, 2008. Tokyo’s Inner Central Five Wards, Mumbai’s Nariman
Point and Tokyo’s Outer Central Five Wards rounded out the top five most
expensive markets.
Dublin's office rent at $126.60 per square foot, is just behind Hong
Kong and more than double rents in Toronto's Central Business District.
Global Market
Rents - - free registration to download report.
“Office occupancy costs are continuing to defy sluggish economic
conditions and the credit crunch, as they rise faster than global
inflation,” said
Dr. Raymond Torto, CBRE’s Global Chief
Economist. “These
cost increases are dominated by emerging markets, caused by both supply
and demand imbalance and the depreciation of the dollar relative to
local currencies. In some of these emerging markets, Class A office
space is seriously lacking.”
Vietnam's Ho Chi
Minh City had the fastest-growing occupancy costs during this period, up
94%. Moscow was not far behind at 93%, followed by Singapore at 86%.
Overall, EMEA (Europe, Middle East and Africa) dominated the list of
markets with the fastest growing occupancy costs, accounting for five of
the top 10 and 19 of the top 50 markets. Worldwide, 88% of the 173
office markets monitored posted higher occupancy costs.
Among the most
expensive markets, Singapore and Dubai were newcomers to the top 10.
Singapore ranked ninth with an occupancy cost of $139.31 (occupancy cost
in US$/sq. ft./annum used throughout this release), while Dubai debuted
at number 10 with an occupancy cost of $128.49. With a near-doubling of
occupancy costs, Moscow rose four places to second at $232.37. Midtown
Manhattan was still the priciest market in North America, at $103.43,
and ranked number 13 worldwide.
Asia Pacific
Ho Chi Minh City
jumped from 45th to 23rd most expensive globally, with occupancy costs
rising to $85.84. Occupancy costs in Tokyo’s Inner Central Five Wards
rose to $220.25, while Tokyo’s Outer Central Five Wards increased to
$175.35. Perth, Australia, joined the top 50 most expensive, coming in
at number 41. Asia Pacific had 11 markets among the 50 with the fastest
growing occupancy costs, paced by Singapore (86%) and Mumbai (41%).
Europe
At $299.54,
London’s West End remained the world’s most expensive office market.
Occupancy costs in that market are 29% higher than Moscow, where
occupancy costs rose to $232.37, the world’s second-most expensive; and
82% more than the City of London’s $164.18 occupancy cost. In Europe,
occupancy costs grew fastest in Moscow, with a 93% increase, and Oslo,
Norway, with a 58% increase.
Americas
Four North American
cities are among the world’s Top 50 most expensive office markets:
Midtown Manhattan (13th at $103.43); Calgary Central Business District (CBD)
(42nd at $66.27); Toronto CBD (47th at $62.44); and suburban Los Angeles
(48th at $62.06). Rio de Janeiro rose to $74.60 (32nd), while São Paulo
increased seven spots to 35th at $71.41. North America totaled 16 of the
top 50 markets with the fastest growing occupancy costs. The fastest
gains were recorded by Miami (29%), Panama City (28%), Seattle (26%) and
