According to CBRE study, Bangkok rank 151 st among 179 countries with an occupancy cost of 694 Baht per square meter. Djakarta has the lowest cost in Asia with a 481 baht per square meter. London’s West End can once again lay claim to the distinction of being the world’s most expensive office market after its rental prices surged past those in the inner central district in Tokyo.
Office markets worldwide are experiencing unprecedented declines in prime office rents. The year-over-year change in the prime office occupancy costs of the 179 markets CBRE Global Research and Consulting monitors for this publication revealed a collective drop of 7.7% worldwide. The majority of markets—a total of 131—experienced an annual decline, while nearly 50 markets registered double-digit percentage-point drops in office occupancy costs, year-over-year.
Many of the world’s important financial centers are seeing unprecedented declines and are at the top of the list of fastest-changing markets. These include Hong Kong Central CBD (-40.7%) and New York’s Midtown Manhattan (-29.7%), along with some emerging markets such as Ho Chi Minh City (-45.4%) and Abu Dhabi (-38.6%) , both of which until recently had been amongst the fastest growing markets. Kiev, Ukraine, led the world with the largest year-over-year decrease in office occupancy costs, falling 64.6%.
London’s West End can once again lay claim to the dubious distinction of being the world’s most expensive office market after its rental prices surged past those in the inner central district in Tokyo.
Office rents in the West End rose over the six months to Sept. 30 as most global markets reported a decline, according to new research from property advisers CB Richard Ellis.
Offices in the West End were charging an average of $184.85 per square foot per year at the end of September, up from $172.62 in March. Offices in Tokyo’s inner central district, which was the second most expensive place to rent, cost an average of $171.64 per square foot. The third most costly rental location was Tokyo’s outer central district, where a square foot of office space cost $139.09.
Hong Kong’s central business district and Moscow rank fourth and fifth in the report, which tracks office occupancy costs in 179 cities around the world. New York’s Midtown office district ranked 24th, at $68.93 a square foot.
Asia’s economic performance generally exceeded expectations in 3Q 2009, with key data indicating the region is experiencing a mild recovery on the heels of sustained growth in China and India. Consumer and business sentiment continued to improve, a trend reflected by the revival of the capital markets and the rebound of asset prices in a number of key markets. Economists became more optimistic on the regional economy and lifted Asia’s growth outlook, with the IMF revising its 2009 and 2010 GDP growth forecast for Asia upwards, to 2.8% and 5.8%, respectively. However, a number of export-oriented countries remained vulnerable to the still-fragile export sector and weakened industrial production. The Asian office leasing market gradually picked up during 3Q with a rise in inquiries from corporate office occupiers after a quiet first half. It is expected that a significant portion of this interest will translate into signed leases in late 2009 and into 2010. Existing occupiers continued to seek out lower costs and better-value relocation options. Prime office rents in major markets generally remained stuck in the down cycle, although rents began to fall at a much slower rate compared to that of 1H 2009.
Here is a list of the top 10 most expensive office districts worldwide, with other selected markets as well.
1. London (West End)
2. Tokyo (Inner Central)
3. Tokyo (Outer Central)
4. Hong Kong (Central Business District)
9. London (City)
10. New Delhi (CBD)
12. Rio de Janeiro
24. New York City (Midtown)
50. Washington (CBD)
Source: CB Richard Ellis