London unseats Hong Kong as the world's most expensive office market

London's West End has seen a 14 per cent jump in costs this year to $259

London’s West End has stolen Hong Kong's crown as the world’s most expensive office market after a 14 per cent rise in costs this year, a leading property agent said today.

Consultant’s CBRE’s league table of total occupancy costs puts the West End - suffering an acute shortage of space as well as recovering demand from financial players in the traditional homes of the hedge funds - at $259.36 (£159.20) per square foot.

This is ahead of the Asian powerhouses which dominate the rest of the world’s top five - Hong Kong’s central district, Beijing’s Finance Street and central district and Hong Kong’s West Kowloon.

CBRE’s occupancy cost measure also includes business rates, which are high in London, and service charges, which inflate the total occupancy bill. But there have been 14 deals struck in  the West End above the £100 a square foot mark so far this year.

 

The biggest of these was Singaporean sovereign wealth fund Temasek, which planted its flag in London in dramatic style this year for a new European headquarters in St James’s. The reported rent of £130 a square foot was the highest in the West End since before the credit crunch struck in 2007.

Emma Crawford, CBRE’s head of West End & Midtown leasing, said: “The headline rents in the West End office market relate to the sub 10,000 sq ft transactions in the core market of Mayfair and St. James’s. The financial occupiers which traditionally pay these rents are becoming increasingly active as the market recovers.”

CBRE’s global head of research Raymond Torto said: ““The growth of occupancy costs for prime office space in the past year underscores that even in a slowly recovering economy, demand for the best space in the best locations continues to be strong.”

Top Ten Most Expensive Office Market

(in $ per sq. ft. per year)

 

Market

Cost

   
 

London - Central (West End), United Kingdom

$259.36

 

Hong Kong (Central), Hong Kong

$234.30

 

Beijing (Finance Street), China

$197.05

 

Beijing (CBD), China

$189.67

 

Hong Kong (West Kowloon), Hong Kong

$170.42

 

Moscow, Russian Federation

$165.05

 

New Delhi (Connaught Place - CBD), India

$156.65

 

Tokyo (Marunouchi Otemachi), Japan

$154.67

 

London - Central (City), United Kingdom

$142.71

 

Paris, France

$122.10

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee