HK, Tokyo most expensive office markets
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Hong Kong and Tokyo have topped the list as the world’s most expensive cities for offices in 2008, supplanting 2007 leader London.
Bloomberg reported the annual survey by New York-based property broker, Cushman & Wakefield Inc, as revealing that falling rents in the UK capital combined with a weak pound to lower office rent costs for prime offices in London’s West End down 23% to EUR1,403 (US$1,783) per square meter annually. That compares with an average of EUR1,743 per square meter in Hong Kong and EUR1,649 in Tokyo.
The survey added that the global financial crisis pushed rents lower in 16% of the world’s biggest cities as companies cut back on the space they lease.
Costs fell 4% in Hong Kong compared with a year earlier and declined 19% in Tokyo.
“There seems little doubt that rents will continue to fall over 2009, perhaps at a faster rate than before,” Cushman & Wakefield’s General Manager for Hong Kong, John Siu, was quoted saying.
Cushman & Wakefield surveyed 202 locations in 57 countries, according to Bloomberg. Rents climbed 3% globally, the smallest increase since 2004. Moscow, Dubai, Mumbai, Paris, Damascus, Singapore and midtown Manhattan rounded out the 10 most expensive locations for offices.
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