Hong Kong has topped this year’s CBRE ranking of the world’s highest-priced office markets.
The latest Global Prime Office Rents survey revealed that Asia had the three most expensive markets. Hong Kong Central and Hong Kong West Kowloon ranked first and third, with rents of £203/sq ft and £140/sq ft respectively.
Beijing Financial Street was in second position with £150/sq ft, followed by New York at the fourth with £127/ sq ft.
London’s West End ranked sixth in the world with £115/sq ft - a 12.5% drop since last year. CBRE analysis suggested that a “weaker employment growth” and “slower demand” from hedge funds and the private equity sector have reduced demand for new space in the British capital.
“Prime rents showed the strongest growth in information technology and media hubs, including Stockholm, Amsterdam, Tel Aviv, New York and Seattle,” said Richard Barkham, global chief economist at CBRE.
“Coworking operators have been active in acquiring new space, particularly targeting tenants in tech industries.”
Global prime office rents have risen 2% since 2016, with the Americas performing the strongest (+3.4%) followed by Europe, the Middle East and Africa (+1.3%) and Asia Pacific (1.2%).
Cities slightly cheaper than London include Tokyo, Shanghai and New Delhi.