London Cements Position as World’s Most Expensive Office Market According to Cushman & Wakefield
“The US economic recovery helped to bolster strong leasing activity in the country’s core downtown markets – such as New York, which saw record take-up results – whereas in South America, the underperformance of both Brazil and Argentina in 2014 led to a slowdown in economic growth.”
- London yet again captures the top position as the world’s most expensive office market for the 3rd consecutive year, driven by a strengthening economy, low supply and sustained take-up
- New York is the most expensive office market in the Americas (3rd globally) – the city benefitted from some large deals bringing a hefty 32.8 million sq.ft of take-up in 2014, the highest take-up level in more than 15 years
- Hong Kong is the most expensive office market in Asia Pacific (2nd globally), with the domestic financial market spurring higher levels of activity
- Dublin’s growth performance outpaced all others, with a 26.5% rise in office occupancy costs fuelled by tight supply, limited construction and considerable tenant interest, particularly from the IT sector
- Bogotá was the star performer of the Americas in terms of office occupancy cost growth (26.2%) and a burgeoning economy (anticipated 4.7% in 2014).
- Global office rents rose 7% in 2014, more than double the circa 3% annual compound increase since 2010, with office market appetite sustained by strong interest in the world’s top gateway foundation cities