London Remains Most Expensive Office Market, Report Finds
London’s West End is still the world’s most expensive office market, according to CB Richard Ellis Group’s Global Research and Consulting semi-annual Global Office Rents survey.
Hong Kong’s Central Business District has risen to second, according to CBRE.
Tokyo's Inner Central is the third-most expensive. Mumbai is now ranked fourth-most expensive and Moscow fifth, according to the report.
The CBRE rankings track occupancy costs for prime office space in 176 cities around the globe.
Office occupancy costs measured in U.S. dollars are affected by changes in the dollar's value versus the respective local currency. Therefore, office occupancy costs when converted into U.S. dollars are driven by both the local market dynamics of supply and demand, as well as currency changes, according to the report.
The report also found that on a year-over-year basis, global occupancy costs are searching for a bottom, with the markets monitored revealing a collective drop of -4.6 percent worldwide over the 12-month period ending March 31, 2010.
Larger markets experienced a slightly greater decline of -6.4 percent.
According to the report, the Latin American Market — led by Brazil — was the only region to show an increase year over year in occupancy costs.
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