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 $180.80, the world’s third most expensive. Also notable in the region was Warsaw, where rents jumped 47% in the last year. Americas Five North American cities are among the world’s Top 50 most expensive office markets: Midtown Manhattan (12th); Calgary Central Business District (CBD) (34th); Toronto CBD Top Ten Most Expensive Markets Top Ten Markets with Fastest Growing Rents (In US$ per sq. ft. per annum) (In local currency & measure)
(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 $59.25.
1. London (West End), England 1. Singapore
2. Mumbai (Bombay), India 2. Moscow, Russia
3. London (City), England 3. Mumbai (Bombay), India
4. Moscow, Russia 4. Manila, Philippines
5. Tokyo (Inner Central), Japan 5. Oslo, Norway
6. Tokyo (Outer Central), Japan 6. Bangalore, India
7. Paris, France 7. Warsaw, Poland
8. New Delhi, India 8. Los Angeles (Suburban)
9. Dublin, Ireland 9. Edmonton, Canada
10. Hong Kong 10. London (West End), England
* The full Top 50 Most Expensive and Top 50 Markets with Fastest Growing Rents charts are located at the end of this press release.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2006 revenue). With over 24,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. In 2007, CB Richard Ellis was named one of the 50 “best in class” companies by BusinessWeek, and one of the 100 fastest growing companies by Fortune. Please visit our Web site at www.cbre.com.
Notes to Editors
- Global Market Rents is a survey of office occupation costs in 171 cities worldwide.
- The Fastest Growing ranking is based upon occupancy costs in local currency and measure. The Most Expensive ranking is based upon occupancy costs in US$ per sq. ft. per annum.
- 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.
- In the United States, the methodology for producing local numbers has been modified to better align with other regions.
- 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.
- 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. - The report is also available from the CBRE Research Center on www.cbre.com.
Top 50 Most Expensive Office Markets as of November 2007
|
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 |
ght=”17″ valign=”bottom” style=”padding-right: 5.4pt;padding-left: 5.4pt;padding-bottom: 0in;width: 55.25pt;padding-top: 0in;height: 12.75pt”> |
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 |
||||||||
| “bottom” style=”padding-right: 5.4pt;padding-left: 5.4pt;padding-bottom: 0in;width: 35.3pt;padding-top: 0in;height: 12.75pt”> |
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 |
=”bottom” style=”padding-right: 5.4pt;padding-left: 5.4pt;padding-bottom: 0in;width: 53.05pt;padding-top: 0in;height: 12.75pt”> |
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 |
style=”padding-right: 5.4pt;padding-left: 5.4pt;padding-bottom: 0in;width: 53pt;padding-top: 0in;height: 12.75pt”> |
|
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 |
| height=”17″ valign=”bottom” style=”padding-right: 5.4pt;padding-left: 5.4pt;padding-bottom: 0in;width: 29pt;padding-top: 0in;height: 12.75pt”> |
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 |
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