HK succeeds to be the most expensive office market, followed by London, according to the latest report of Office Space Across the World 2012 by Cushman & Wakefield.
Global office market performance was positive in 2011 as robust leasing activity in the first half of the year resulted in rising rents in the majority of markets. This appreciation in prime rents was fulled by growth within Asia pacific, where rents advanced by 8% elsewhere, rental growth was more muted: the Americas registered a 4% increase and Europe, the Middle east and Africa (EMEA) only a 1% rise. Hong Kong held its position as the most expensive location in the world, with London (west end) remaining in second place and Tokyo in third and all three cities retaining the same positions as held in the previous year.
In Asia pacific, the principal Chinese cities of Beijing and shanghai led the way in terms of rental growth. Beijing saw rents accelerate by a staggering 75% over the year, subsequently overtaking
Shanghai as the most expensive location in mainland china. However, rental performance in shanghai was far from subdued, as rents rose by nearly 30% over the course of the year. Moscow
also witnessed significant rental growth to secure the second highest prime rental rise in 2011. This was largely a result of a notable lack of prime space coupled with robust demand, which pushed rents forward by just over 40%.
Although increasing tenant activity yielded a promising beginning to 2011, the second half of the year saw caution within the occupier sector rise, and activity across a number of markets experienced notable slowdowns. Apprehension rose from both the euro zone sovereign debt crisis and the US deficit, resulting in demand levels easing and occupiers becoming more restrained when making location decisions. By the close of 2011, this hesitancy had spread to the Asia pacific region, with caution - particularly from financial services occupiers - becoming increasingly evident in locations such as Hong Kong.
Looking ahead, the occupier market within EMEA is anticipated to remain largely subdued into 2012 with the core cities of London, Paris, Moscow and Frankfurt outperforming other markets.
Furthermore, the shortage of prime space in a number of these locations will result in significant location decisions being put on hold until the second half of 2012.
with occupier demand expected to remain strong in 2012, the Brazilian cities of São Paulo and Rio de Janeiro will continue to drive the wider Americas region in terms of rental growth and market activity. in the Us a slow economic recovery is underway, but any further shocks may hamper future growth. Nevertheless, markets such as Houston and San Francisco are expected to see positive activity due to the growing presence of technology and energy industries.
On the top list of most expensive location not in CBD were: Hong Kong, London, Rio de Janeiro, Moscow, Paris, Sydney, Geneva, Osio, Amsterdam and San Francisco.
Here are the top 20 most expensive location in CBD:
