London Office Rents Now Most Expensive
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 of Tokyo.
Office rents in the West End rose in the six months ended Sept. 30, as most global markets reported a decline, according to research from property advisers CB Richard Ellis.
Offices in the West End were charging an average of $184.85 a square foot a year at the end of September, up from $172.62 in March.
Offices in Tokyo's inner central district, the second most expensive place to rent, cost an average of $171.64 a 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, according to the report, which tracks office occupancy costs in 179 cities around the world.
CBRE said in the six months ended in March, Tokyo's inner central district had overtaken the West End to be the most expensive office market in the world. In its latest report, CBRE reported a surge in demand for West End offices since the summer as a result of strong demand from banking, finance and business services.
While rents in the West End have increased in absolute terms since the last report, rents in the other four most-expensive cities declined.
Prime-office-occupancy costs fell across the cities covered by the research, which found that in the year ended in September, the markets reported an average decline of 7.7%. Nearly 50 markets reported a double-digit drop; 131 reported an annual decline.
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