West End regains crown for dearest office space in the world, says DTZ

The hedge-fund heartland of the West End has regained its status as the most expensive place in the world for office space, property agent DTZ said today.

The area, also favoured by technology giants like Google, Facebook, Skype and LinkedIn, was the most expensive of 126 business districts, with costs three times the global average.

Employers had to pay $23,500 (£14,857) per workstation last year, overtaking Hong Kong which temporarily took the mantle in 2011.

Richard Howard, head of DTZ West End, comments: “These figures are a tangible reflection of the fact that London is a highly attractive place to locate a business.

“It should be observed, however, that the West End alone has many different characteristics and price points.” Office space in the West End is nearly 20 times more expensive than the cheapest location in the survey, Surabaya in Indonesia, followed by Hyderabad in Pakistan and China’s Chongqing. But United States employers slashed overheads in 2012, driving down costs.

Head of occupier research Karine Woodford added: “The US was undoubtedly one of the stories of the year, with occupancy costs per workstation falling in every city.”