January 6, 2003—According to DTZ’s sixth annual Global Office Occupancy Costs survey, the Londons West End and City are the first and second most expensive places in the world for leasing property.
The report also reveals that large rental falls in several global locations have pushed Birmingham and Manchester into the top ten for the first time and means these cities now hold sixth and tenth positions respectively.
The office markets in most major international cities weakened in 2002, says DTZ. Cost-containment remained a major consideration for occupiers as continued corporate restructuring and downsizing, accounting scandals and the threat of war in the Middle East and the lingering effects of September 11th left most global economies with weaker than expected performances. High levels of available space to be sub-let space remains a key feature in many markets.
The Ten Top Most Expensive Office Locations by Occupancy Costs:
- London (West End)
- London (City)
- Tokyo (Central 5 Wards)
- Paris
- Edinburgh
- Birmingham
- New York City (Midtown)
- Moscow
- Hong Kong
- Manchester
Commenting on the findings, Elspeth Lochhead, director, DTZ Pieda Consulting,said: “There has been a mixed pattern of change in occupancy costs around the world over the last 12 months. Costs in a number of world cities have decreased—including London, Frankfurt, Dublin and downtown New York. In the major Asian cities of Tokyo, Hong Kong and Beijing, costs have continued to fall again this year, as have those in some US cities, notably Boston and Washington DC. Conversely occupancy costs in a number of European cities have risen significantly, and in particular in Milan, Paris and many UK cities outside London.
“All of this reflected the uncertain and mixed economic situation and outlook around the world post September 11th with rents in financial centres in particular beginning to be depressed by slowing demand.”
The report is a guide to leasing costs in major prime office locations. The DTZ sixth annual survey covers 92 business districts in 44 countries worldwide. Beyond office occupancy costs, it also details the average office space allocated per workstation across cities and enables companies to make comparisons of total occupancy costs on a per workstation basis.
For more information, contact DTZ.
—Fiona Perrin
Reprinted with permission; copyright 2003 i-FM
