London office market ranks second most expensive in the world.
The UK capital is second on a list of the world’s most expensive office regions.
The London office market has ranked second in a survey to determine the world’s most expensive office space destination. The list is compiled by the professionals at Cushman & Wakefield yearly to show the increase or decrease in office leasing costs around the world.
Hong Kong topped the list after seeing a rent increase of 51%. Currently it stands at an average of £160 per square foot.
Both the London office market and Hong Kong have experienced a rise in leasing prices due to an increased interest in high class office space. This, paired with a general lack of available space or developments has pushed office rates higher.
London’s West End saw its rent raise by 27% and is the most expensive European location by far. Rio De Janeiro saw the biggest price increase moving up ten places on the list to number four, whereas Tokyo fell two places from the top spot.
“Asian markets have been recovering and growing at a much faster rate than their European or North American counterparts, an aspect that is reflected in the Indian markets as well,” commented Arvind Nandan, chief executive at Cushman & Wakefield’s Indian offices.
The study shows a recovery within the London office market after one of the largest rental declines in 2009. One reason for this is that many firms want to be based within a city location.
“Office space rents can be quite costly if you want to open a base in a major city. However, that’s the price you have to pay if you want a great location,” commented Anna Timms, financial adviser at investmentsense.co.uk.
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