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
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

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?