London and Mumbai Top List of World's Most Expensive Office Markets
London’s West End, Mumbai, the City of London and Moscow are the top four most expensive office markets in the world, according to CB Richard Ellis Research’s semi-annual Global Market Rents survey. The report tracks the world’s most expensive markets as well as markets with the fastest growing rents over the past 12 months.
The ten most expensive markets have not altered in the last six months, although their order within the top-ten list has. Mumbai’s Nariman Point, at $189.51 (occupation cost in US$/sq. ft./annum used throughout this release), rose three places to second. At $180.78, Moscow joined the top five, jumping two spots to fourth overall. Tokyo’s Inner Central Five Wards and Outer Central Five Wards fell to fifth and sixth, respectively. Midtown Manhattan is the priciest market in North America, at $100.79, and ranks #12 worldwide.
Of the 171 office markets monitored, 85% saw rents rise in the 12 months ended September 30, 2007. Singapore led the list of markets with the fastest growing office rents, with occupancy costs increasing 83% during the past year. North America accounted for more than one-third of the top 50 markets with fastest growing rents, including two in the top 10: suburban Los Angeles, with year-over-year rent growth of 45%; and Edmonton, Canada, with 43% rent growth over the last 12 months.
At $328.91, London’s West End was once again the world’s most expensive office market. Occupation costs in this market are 82% higher than the City of London, where occupation costs rose to $180.80, placing it third in the rankings.
Four European markets, Moscow, Oslo, Warsaw and London’s West End were also among the cities with the fastest growing rents. Moscow showed the fastest growth in Europe with a 65% increase, followed by Oslo with 49% annual growth. In fact, growth has been widespread across Europe over the past year, driven by strong demand and a lack of Grade A space in prime locations in many markets including London and Paris.
Singapore jumped from 24th to 11th most expensive globally, as rents rose to $102.37 over the last 12 months. Occupation costs in Tokyo’s Inner Central Five Wards rose to $178.61, while the Outer Central Five Wards increased to $154.56. Brisbane, Australia joined the top 50 most expensive, coming in at number 47. In terms of rent growth, Mumbai’s Nariman Point posted an increase of 55%.
Five North American cities are among the world’s Top 50 most expensive office markets: Midtown Manhattan (12th); Calgary Central Business District (CBD) (34th); Toronto CBD (35th); and newcomers suburban Los Angeles (36th) and Downtown Manhattan (46th). Rio de Janeiro rose to $65.35 (33rd), while São Paulo inched up two spots to 40th at $59.25.
Top Ten Most Expensive Markets Top Ten Markets with Fastest Growing Rents
(In US$ per sq. ft. per annum) (In local currency & measure)
1. London (West End), England 1. Singapore
2. Mumbai (Bombay), India 2. Moscow, Russia
3. London (City), England 3. Mumbai (Bombay), India
4. Moscow, Russia 4. Manila, Philippines
5. Tokyo (Inner Central), Japan 5. Oslo, Norway
6. Tokyo (Outer Central), Japan 6. Bangalore, India
7. Paris, France 7. Warsaw, Poland
8. New Delhi, India 8. Los Angeles (Suburban)
9. Dublin, Ireland 9. Edmonton, Canada
10. Hong Kong 10. London (West End), England
* The full Top 50 Most Expensive and Top 50 Markets with Fastest Growing Rents charts are located at the end of this press release.