West End office space still the most expensive

The West End of London has retained it’s position as having the most expensive office occupancy costs on the planet. This came to light in CB Richard Ellis’s Global Market rents survey. The survey also revealed that London had not only the highest occupancy costs but also the fastest growing. Second behind London was Moscow where costs have close to doubled in the last year, followed by Tokyo.“Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation,” commented Raymond Torto of CBRE.

He added “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.”

What is also quite remarkable is that almost 90% of the office markets in the report had increased occupancy charges. What is less surprising is that Dubai and Singapore make the top ten, considering the amount of development activity in these countries, particularly Dubai.

The Top Ten

1. London (West End), England

2. Moscow, Russia

3. Tokyo (Inner Central), Japan

4. Mumbai, India

5. Tokyo (Outer Central), Japan

6. London (City), England

7. New Delhi, India

8. Paris, France

9. Singapore

10. Dubai, United Arab Emirates

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