You thought the office markets in New York City and San Francisco were expensive? Well, they are.
But according to a recent CBRE report detailed by National Real Estate Investor, Asia is the king of the global office world.
The number-one-ranked office market, according to the brokerage firm’s data, is Hong Kong. The city’s Central area has rents at $306.57 per square foot, jumping 1.6 percent from the same period a year ago.
London’s West End finished second @$235.01 per square foot, a whopping 20.6 percent increase over a year ago.
Clocking in third was Beijing’s Finance Street, which has rents at $200.91 per square foot, rising 9.7 percent from the prior year. Fourth was Hong Kong’s Kowloon area, at $189.56, and Beijing’s CBD, at fifth, hit $189.44, an 11.4-percent year-over-year change.
Midtown Manhattan in New York was no slouch, hitting fifth place, but rents have fallen 9.4 percent in 12 months. However, office leasing is apparently on the rise in the city’s marquee area for such tenants, according to second-quarter data supplied by Colliers International. Rent increases have not been a problem in Downtown Manhattan, however, which experienced a 12.4-percent boost, hitting $102.49. Midtown South, coming in at seventh, also saw a rise, with a 9.8-percent rise. Average rents there came in at $171.56.
Despite ongoing Brexit issues, London’s West End was ranked second, posting a 20.6-percent year-on-year jump, reaching $235.01. The City of London also had a major burst of rent-price activity, at tenth place, with a 22.2-percent increase that made it hit $144.95.
San Francisco, known for its skyrocketing rents, doesn’t make it globally until number 13, when its downtown area’s rents hit $113.84, a one percent rise from the prior year. The Peninsula area was at 18, with rents at $103.22, a 6.6-percent gain.
It might be surprising to some of our readers that New Delhi’s CBD is ninth, at $153.26, though that was a 0.4-percent-downward change from the prior year. A Cushman & Wakefield report (download here) on the office market there in this year’s first quarter paints a bright picture. There was a 14 percent increase in net absorption quarter over quarter there, and though vacancy is expected to rise, so is absorption, as well as new supply.
Finally, with it partially being a great host to the World Cup, it is only proper to give a shout out to Moscow, which came in number 14, with rent at $108.10, and a high-scoring 14-percent change in the last 12 months.
About GRS Group:
GRS Group is a leading provider of commercial real estate (“CRE”) services worldwide. With offices across the United States, Europe, and affiliates around the globe, GRS Group provides local market knowledge with a global perspective for institutional real estate investors, occupiers and lenders worldwide. The GRS Group team has evaluated and advised on over $1 trillion in CRE transactions.