Asia home to most expensive office markets

Beijing, China Photo: Poeloq

Asia is home to the world's most expensive office locations, according to CBRE, despite London leading the way.

The UK capital's West End is the highest-priced office market at US$267 per sq. ft. per year. Hong Kong (Central) follows in second place at US$254 per sq. ft. per year, which is the only other market in the world with a prime occupancy cost exceeding US$200 per sq. ft.

Asia continues to account for four of the top five markets, from Beijing (Finance Street) (US$196 per sq. ft.) and Beijing (Central Business District (CBD)) (US$188 per sq. ft.) to New Delhi (Connaught Place –CBD) (US$157 per sq. ft.).

The Change in prime office occupancy costs mirrors the gradual recovery of the global economy, notes CBRE: overall global prime office occupancy costs rose 2 per cent year-over-year, with Asia Pacific up 1.4 per cent, reflecting the economic pressures that prevailed in the region over the past year.

"In the Asia Pacific region, occupancy cost trends were mixed, with regional surveys showing stronger hiring intentions among employers in India, Taiwan, New Zealand, the Philippines and Japan while corporate hiring activity remained muted in other locations. India and the Philippines also continued to benefit from growing IT back office services looking for operational and costs efficiency," comments Henry Chin, Head of Research at CBRE Asia Pacific.

"Throughout Asia, technology firms, business process outsourcing (BPO) firms and non-banking financial institutions are in expansionary mode, stimulating demand for office space. However, we are also seeing diverse occupier activity in the region with less expansionary markets—some occupiers are looking to optimize existing accommodations rather than expand."