The central section of Hong Kong remains the world's most expensive office market, surpassing London and Beijing, CBRE reports.
The average overall occupancy cost for office space in central Hong Kong is US$235.23 per square foot per year, compared to $222.58 for London's West End and $195.07 for Bejing's Finance Street. It was the third consecutive time Hong Kong has topped the semi-annual report from CBRE.
"Hong Kong Central's position as the most expensive office market continues to be bolstered by its status as a leading global financial center," CBRE reports. "Although financial institutions have become more cost sensitive, with some considering relocating to less expensive space outside the CBD, high-quality and premium space is still sought after, especially by mainland Chinese firms which are increasingly setting up their offices in Hong Kong (Central) in prestigious buildings."
Beijing's Jianguomen CBD and New Delhi's Connaught Place CBD were the other districts in the top five. New York's Midtown Manhattan returned to the top 10 markets for the first time since early 2012, taking the tenth slot.
The largest percentage increase was in Jakarta, which saw prices increase by 38.9 percent in the last year, followed by suburban Houston (21.2 percent), downtown Boston (15.4 percent) and downtown Houston (14.9 percent).
"While the pace of occupancy cost growth globally has slowed, limited supply of prime space in key core business centers has fueled continuous upward movement of occupancy costs," said Dr. Raymond Torto, CBRE's global chief economist. "The most expensive office markets often attract the regional headquarters of large multinational firms that require a prime location in a prestigious building with access to major global and regional transit routes."
Of the 50 most expensive markets, 21 are in Asia-Pacific, 18 are in EMEA and 11 in the Americas.