London Tops List of Most Expensive Office Locations in the World
By Industry Leaders Magazine | February 21, 2013 12:17 PM EST
Some things do not change. One of them is continuous rivalry among cities when it comes to the title of the most expensive office space. The highest prices give not only the prestigious title, but show which destinations are popular. And, to cut a long story short, London was awarded with the prominent title of the most expensive office space in the world, regaining it after several years.
Hong Kong, which was dethroned, has to be satisfied with the second position in the ranking. The loss of the title of the most expensive office space in the world must have been painful, but no one denies the fact that Hong Kong is one of the best place to do business and the better business destination.
The No. 1 - London West End
Property agent Cushman & Wakefield released its new list of most expensive office spaces in the world. According to the newest survey, London may glory in the title of the city with most expensive office space in the world. London's West End substantially has won over Hong Kong's central business district and has gained the title which the UK capital lost back in 2008.
A scarcity of space and growing demand were main drivers of a significant price increase in London which led to the title of the city with most expensive office space in the world. Researchers pointed out that median London rents were more than double than those on legendary New York's 5th Avenue. According to data, to rent the best London's West End office space for a year, one will have to pay over $260 per sq ft. The price is significantly high as in Hong Kong one will have to pay "only" $184 per sq ft.
Digby Flower, Cushman & Wakefield's head of London markets, has underlined unabated London's magic power. According to the company's survey, the priciest city "has consistently been a sought after location for multinational occupiers deriving from a wide range of business sectors. "
London's West End is the most expensive part of the UK capital as many technology, media and hedge fund companies decide to open their businesses there. Not surprisingly, Londoners may propose a toast to London and shout with a joy: "The King is dead, long live the King!"
Challengers for the title
Even though London is the priciest city when it come office space, there are many challengers for the title. We must be aware that the situation on the property market is still uncertain, but there is always one certain thing that when it comes to the better business destinations, rent prices will be always higher.
Cushman & Wakefield's analysts note that rents will increase further as an economic recovery is accelerating. They underline that increases in office rent prices in 2012 were mainly driven by increased interest in South America. In particular, Brazil and Colombia recorded strong growth in office rent. And surprise, surprise - the Zona Sul are of Rio de Janeiro was awarded with the third place in the most expensive office space ranking. Certainly, this is the distinction of the significance of the Brazilian city which saw its rents increase as much as 43 percent in 2012.