London, Hong Kong and Tokyo remain the most expensive places in the world to rent prime office space, new research shows. The London West End office market is the priciest of all three locations. Tokyo’s Inner Central now ranks third, pushed out of second place by Hong Kong’s Central Business District.
Office rents, measured in U.S. Dollars, are affected not only by supply and demand for office space in the respective country, but also by variations in currency values. London office space (West End) currently costs $182.94 per square foot (about £120), per annum, with Hong Kong and Tokyo rents marginally cheaper at $153.20 and $143.99 respectively. Rio de Janeiro, Brazil, showed the biggest increase (17.7 percent).
Global occupancy costs have revealed a collective drop of 4.6 percent over the 12 month period preceding March 31, 2010. Overall, the Europe Middle East and Africa region showed an annual decline of 6.2 percent.