A new report by CBRE found that prime office space costs have increased across the globe. Of the 122 markets analyzed, 85 experienced a rise in costs by an average of 3.6% over the past twelve months.
Julie Whelan, CBRE Americas Head of Occupier Research, attributes this rise to the fact that in many coveted markets supply remain constrained even as demand grew. According to the report, demand for prime office space is particularly strong from the banking, finance, technology and coworking industries.
The report found that Hong Kong Central and London’s West End are the two most expensive markets, while Manhattan sits in fourth place. Furthermore, 15 of the markets analyzed experienced double-digit percentage increases; these markets share the common characteristics of having a central location, modern infrastructure, social amenities, and transit options. Atlanta, Porto, and Singapore are three of these 15 markets, with increases of 14.2%, 24.7%, and 17.3% respectively.
