We're No. 12! Midtown Finishes Way Behind London, Other Cities in Office Costs

Midtown Manhattan is the 12th most expensive office market in the world, well behind the priciest, London’s West End, where the cost of occupying office space averages $328.91 a square foot annually. In midtown, the average cost–which includes rent and taxes–is $100.79 a foot, according to a new report from brokerage CB Richard Ellis.

Midtown did top the list of the most expensive office markets in North and South America, well out ahead of the next most expensive, the Calgary Central Business District. Suburban Los Angeles was the third most expensive market in the Americas; and downtown Manhattan was fourth. They were the only other two American office markets besides midtown to make CBRE’s top 50 most expensive markets worldwide.

The topmost expensive office markets were all in Europe and Asia. For instance, just ahead of midtown is Singapore with an average occupancy cost of $102.37 a foot annually.

The press release, including the top 50 list, is below.

LONDON, MUMBAI TOP LIST OF WORLD’S MOST EXPENSIVE OFFICE MARKETS

* * *

Singapore and Moscow Experience Fastest Rent Growth

 

Los Angeles — November 21, 2007 — London’s West End, Mumbai, the City of London and Moscow are the top four most expensive office markets in the world, according to CB Richard Ellis Research’s semi-annual Global Market Rents survey. The report tracks the world’s most expensive markets as well as markets with the fastest growing rents over the past 12 months.

 

The top ten most expensive markets list is unchanged over the last six months; however, several cities’ rankings have changed. Mumbai’s Nariman Point, at $189.51 (occupation cost in US$/sq. ft./annum used throughout this release), rose three places to second. At $180.78, Moscow joined the top five, jumping two spots to fourth overall. Tokyo’s Inner Central Five Wards and Outer Central Five Wards fell to fifth and sixth, respectively. Midtown Manhattan is the priciest market in North America, at $100.79, and ranks #12 worldwide.

 

Singapore led the list of markets with the fastest growing office rents, with occupancy costs increasing 83% during the past year. North America accounted for more than one-third of the top 50 markets with fastest growing rents, including two in the top 10: suburban Los Angeles, with year-over-year rent growth of 45%; and Edmonton, Canada, with 43% rent growth over the last 12 months.

 

In Europe, the rents grew fastest in Moscow, with a 65% increase, and Oslo, with a 49% increase.

 

Of the 171 office markets monitored, 85% saw rents rise in the 12 months ended September 30, 2007.

 

Asia Pacific

Singapore jumped from 24th to 11th most expensive globally, as rents rose to $102.37 over the last 12 months. Occupation costs in Tokyo’s Inner Central Five Wards rose to $178.61, while the Outer Central Five Wards increased to $154.56. Brisbane, Australia joined the top 50 most expensive, coming in at number 47. In terms of rent growth, Mumbai’s Nariman Point posted an increase of 55%.

 

Europe

At $328.91, London’s West End once again was the world’s most expensive office market.  Occupation costs in that market are 82% higher than the City of London, where occupation costs rose to $180.80, the world’s third most expensive. Also notable in the region was Warsaw, where rents jumped 47% in the last year.

 

Americas

Five North American cities are among the world’s Top 50 most expensive office markets: Midtown Manhattan (12th); Calgary Central Business District (CBD) (34th); Toronto CBD
(35th); and newcomers suburban Los Angeles (36th) and Downtown Manhattan (46th). Rio de Janeiro rose to $65.35 (33rd), while São Paulo inched up two spots to 40th at $59.25.

 

Top Ten Most Expensive Markets        Top Ten Markets with Fastest Growing Rents

(In US$ per sq. ft. per annum)                                (In local currency & measure)

1. London (West End), England                1. Singapore

2. Mumbai (Bombay), India                    2. Moscow, Russia

3. London (City), England                       3. Mumbai (Bombay), India

4. Moscow, Russia                                 4. Manila, Philippines

5. Tokyo (Inner Central), Japan                5. Oslo, Norway

6. Tokyo (Outer Central), Japan               6. Bangalore, India

7. Paris, France                                    7. Warsaw, Poland

8. New Delhi, India                               8. Los Angeles (Suburban)

9. Dublin, Ireland                                  9. Edmonton, Canada

10. Hong Kong                                     10. London (West End), England

 

* The full Top 50 Most Expensive and Top 50 Markets with Fastest Growing Rents charts are located at the end of this press release.

 

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2006 revenue). With over 24,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. In 2007, CB Richard Ellis was named one of the 50 “best in class” companies by BusinessWeek, and one of the 100 fastest growing companies by Fortune. Please visit our Web site at www.cbre.com.

 

Notes to Editors

  1. Global Market Rents is a survey of office occupation costs in 171 cities worldwide.
  2. The Fastest Growing ranking is based upon occupancy costs in local currency and measure. The Most Expensive ranking is based upon occupancy costs in US$ per sq. ft. per annum.
  3. The figures given in this release refer to occupation cost. This represents rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market.
  4. In the United States, the methodology for producing local numbers has been modified to better align with other regions.
  5. Prior editions of the Global Market Rents were published in January and August. Starting with the May 2006 edition, we are now publishing in May and November. Due to the publication schedule differences readers should be wary of attempting to construct long time series using prior editions or press releases.
  6. To obtain a full copy of the report or to arrange to speak with a CBRE expert, please contact Robert McGrath at 212.984.8267 or robert.mcgrath@c
    bre.com
    .
  7. The report is also available from the CBRE Research Center on www.cbre.com.

Top 50 Most Expensive Office Markets as of November 2007

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42.47

Rank

Market

 US$/sq ft/annum

€ /sq m/month

 £/sq ft/annum

Aus $/sq m/annum

Can$/sq ft/annum

¥  /sq ft/annum

1

London (West End), England

328.91

207.14

161.00

3,977

326.67

38,040

2

Mumbai (Bombay), India

189.51

119.35

92.77

2,291

188.22

21,918

3

London (City), England

180.80

113.86

88.50

2,186

179.57

20,910

4

Moscow, Russia

180.78

113.85

88.49

2,186

179.55

20,908

5

Tokyo > (Inner Central), Japan

178.61

112.48

87.43

2,160

177.40

20,657

6

Tokyo (Outer Central), Japan

154.56

97.34

75.66

1,869

153.51

17,876

7

Paris, France

127.48

80.29

62.40

1,541

126.62

14,744

8

New Delhi, India

126.73

79.81

62.03

1,532

125.86

14,656

9

Dublin, Ireland

113.66

71.58

55.64

1,374

112.89

13,146

10

Hong Kong, China

106.31

66.95

52.04

1,285

105.59

12,296

11

Singapore

102.37

64.47

50.11

1,238

101.67

11,840

12

New York  Midtown, United States

100.79

63.48

49.34

1,219

100.10

11,657

13

Dubai, United Arab Emirates

98.32

61.92

48.13

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1,189

97.65

11,371

14

Birmingham, England

96.02

60.47

47.00

1,161

95.36

11,105

15

Edinburgh, Scotland

92.95

58.54

45.50

1,124

92.32

10,750

16

Manchester, England

89.89

56.61

44.00

1,087

89.28

10,396

17

Paris La Defense, France

87.08

54.84

42.62

1,053

86.48

10,071

18

Madrid, Spain

84.06

52.94

41.15

1,016

83.49

9,722

19

, England

83.76

52.75

41.00

1,013

83.19

9,687

20

Glasgow, Scotland

81.72

51.46

40.00

988

81.16

9,451

21

Oslo, Norway

79.11

49.82

38.73

957

78.58

9,150

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22

Leeds, England

78.65

49.53

38.50

951

78.12

9,096

23

Seoul, South Korea

77.58

48.86

37.98

938

77.05

8,973

24

Stockholm, Sweden

76.55

48.21

37.47

926

76.03

8,854

25

Zurich, Switzerland

74.86

47.14

36.64

905

74.35

8,658

26

Milan, Italy

72.91

45.92

35.69

882

72.41

8,432

27

Aberdeen, Scotland

69.97

44.07

34.25

846

69.49

8,092

28

Warsaw, Poland

68.81

43.33

33.68

832

68.34

7,958

29

Abu Dhabi, United Arab Emirates

68.09

42.88

33.33

823

67.62

7,875

30

Frankfurt am Main, Germany

67.44

33.01

815

66.98

7,800

31

Luxembourg City, Luxembourg

67.36

42.42

32.97

815

66.91

7,791

32

Liverpool, England

66.39

41.81

32.50

803

65.94

7,679

33

Rio de Janeiro, Brazil

65.35

41.16

31.99

790

64.91

7,558

34

Calgary (CBD), Canada

64.44

40.58

31.54

779

64.00

7,453

35

Toronto (CBD), Canada

63.78

40.17

31.22

771

63.35

36

Los Angeles (suburban), United States

63.73

40.14

31.20

771

63.30

7,371

37

Geneva, Switzerland

63.71

40.12

31.19

770

63.28

7,368

38

Jersey, England

63.17

39.78

30.92

764

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62.74

7,306

39

Brussels, Belgium

59.67

37.58

29.21

721

59.26

6,901

40

Sao Paulo, Brazil

59.25

37.31

29.00

716

58.84

6,852

41

Munich, Germany

58.72

36.98

28.74

710

58.32

6,791

42

Shanghai (Pudong), China

58.55

36.87

28.66

708

58.15

6,772

43

Athens, Greece

58.19

36.65

28.48

704

57.79

6,730

44

Barcelona, Spain

=”font-size: x-small;font-family: Arial”>53.97

33.99

26.42

653

53.60

6,242

45

Rome, Italy

53.89

33.94

26.38

652

53.52

6,232

46

New York  Downtown, United States

53.47

33.67

26.17

647

53.11

6,184

47

Brisbane, Australia

52.85

33.28

25.87

639

52.49

6,112

48

Sydney (Core), Australia

52.33

32.96

25.62

633

51.97

6,052

49

Shanghai (Puxi), China

52.30

32.94

25.60

632

51.94

=”text-align: right” class=”x_MsoNormal” align=”right”>6,048

50

Amsterdam, Netherlands

52.15

32.84

25.53

631

51.79

6,031

Source: CBRE Research

 

The Top 50 Markets with Fastest Growing Rents as of November 2007
(ranked by 12-month % change increases in local currency & measure)

Rank

Market

% Change

1

Singapore

82.6

2

Moscow, Russia

65.4

Mumbai (Bombay), India

55.0

4

Manila, Philippines

51.8

5

Oslo, Norway

49.3

6

Bangalore, India

49.0

7

Warsaw, Poland

47.2

8

Los Angeles (suburban), United States

45.0

9

Edmonton, Canada

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43.3

10

London (West End), England

41.9

11

Belfast, Northern Ireland

36.4

12

New Delhi, India

34.3

13

Perth, Australia

31.9

14

Miami (suburban), United States

31.1

15

Hong Kong, China

30.7

16

Brisbane, Australia

30.3

17

Seattle (suburban), United States

30.0

18

Ho Chi Minh City, Vietnam

29.0

19

Abu Dhabi, United Arab Emirates

28.9

20

Seattle (CBD), United States

27.1

21

San Jose, United States

25.9

22

, England

25.3

23

San Francisco, United States

25.3

24

Panama City, Panama

23.6

25

New York  Midtown, United States

22.6

26

Tel Aviv, Israel

22.5

27

Orange County, United States

21.3

28

Indianapolis, United States

20.4

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29

Tokyo (Inner Central), Japan

20.1

30

Madrid, Spain

19.7

31

Melbourne, Australia

18.2

32

Miami (CBD), United States

18.2

33

Boston (suburban), United States

18.0

34

Houston, United States

17.8

35

Calgary (suburban), Canada

17.1

36

Albuquerque, United States

17.0

37

Helsinki, Finland

16.3

38

San Jose, Costa Rica

15.9

39

Bratislava, Slovakia

15.9

40

Austin, United States

15.9

41

Buenos Aires, Argentina

15.9

42

Gothenburg, Sweden

15.6

43

Stockholm, Sweden

14.9

44

London (City), England

14.2

45

Sao Paulo, Brazil

14.1

46

Denver, United States

13.7

47

Montevideo, Uruguay

13.5

48

Tokyo (Outer Central), Japan

13.4

49

Oakland, United States

13.0

50

New York Downtown, United States

13.0