Offices in major Asian cities now command the most expensive rents in the world, according to a recent report released by Knight Frank. Land-scarce Hong Kong leads the pack where offices command a yearly per-square-meter rent of $1,756.84, followed by London’s West End at $1,651.58.
According to Knight Frank, office rents in Asia’s major cities are rising rapidly in the last five years. Hong Kong is joined in the top 20 by Singapore and Beijing, which have both risen in the ranking four and 13 notches, respectively, since 2007. Offices in these cities now command rents of $983.95 and $755.88 per square meter per year, respectively.
Tony Nicholas, Head of Knight Frank’s Global Corporate Services, said:
“Beijing’s jump from 25th to 12th place increases its likelihood of entering the top 10 in 2013. Singapore has also continued its inexorable rise among the leading global office markets.”
In addition, London’s West End and Paris confirmed their positions as perennial former’s hefty lead over third placer Moscow means it’s unlikely to be overtaken this year.
Furthermore, North American cities performed well in 2012, with San Francisco moving up six spaces from 2011 to 2012 with growth driven by technology companies; Manhattan also saw improvement, jumping five places to 10th place.
According to Nicholas, the overall picture on global rents is mixed. “Global corporations in 2012 were anxious to avoid unnecessary expenditure, which meant less office moves and hard discussions on rents. In 2013, a recovering global economy, and constrained development activity in most major cities will result in more relocations.”
Here’s 2012’s top 10 (rent per square meter per year in US dollars):
1. Hong Kong – $1,756.84
2. West End, London – $1,651.58
3. Moscow – $1,199.85
4. Tokyo – $1,181.23
5. Paris – $1,057.14
6. Singapore – $983.95
7. London (City) – $956.18
8. Geneva – $875.24
9. Perth – $799.47
10. Manhattan – $783.97
