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CBRE Report Reveals Top Prime Office Occupancy Cost Markets
Los Angeles-based CBRE reports that Hong Kong Central remained the most expensive office market in the world. Global prime office occupancy costs, which reflect rent, plus local taxes and service charges for the highest-quality, “prime” office properties, rose 2.4% year-over-year, with the Americas up 3.2%, EMEA up 2% and Asia Pacific up 1.7%.
CBRE’s annual Global Prime Office Occupancy Costs reveals Hong Kong Central’s overall prime occupancy costs of US $307-per-square-foot per-year topped the “most expensive” list, followed by London West End, Beijing Finance Street, Hong Kong Kowloon and Beijing Central Business District.
CBRE’s Richard Barkham says, “For the first time in this cycle, prime office occupancy cost growth was consistent across all regions. Global economic growth has stimulated robust leasing activity, particularly in EMEA and APAC. While occupancy cost growth in the Americas slowed slightly compared to a year earlier, it remains the region with the overall largest increase in costs. We expect global office occupancy costs to increase by approximately 2 percent in the year ahead.”
Top 10 Most Expensive Markets
(In US$ per sq. ft. per annum; as of Q1 2018)
| Rank | Market | Occupancy Cost |
| 1 | Hong Kong (Central), Hong Kong | 306.57 |
| 2 | London (West End), United Kingdom | 235.01 |
| 3 | Beijing (Finance Street), China | 200.91 |
| 4 | Hong Kong (Kowloon), Hong Kong | 189.56 |
| 5 | Beijing (CBD), China | 189.44 |
| 6 | New York (Midtown Manhattan), U.S. | 183.78 |
| 7 | New York (Midtown-South Manhattan), U.S. | 171.56 |
| 8 | Tokyo (Marunouchi/Otemachi), Japan | 171.49 |
| 9 | New Delhi (Connaught Place – CBD), India | 153.26 |
| 10 | London (City), United Kingdom | 144.95 |
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