London's West End has retained its position as the world's most expensive office location for the seventh consecutive year, according to a new report by property advisor DTZ. London (City) was ranked number 4. The 10th annual Global Office Occupancy Costs Survey is a guide to total occupancy costs across 131 business districts in 46 countries, divided into six regions. Locations are ranked on a workstation basis and costs are expressed in US Dollars.
London's West End has retained its position as the world's most expensive office location for the seventh consecutive year, according to a new report by property advisor DTZ. London (City) was ranked number 4. The 10th annual Global Office Occupancy Costs Survey is a guide to total occupancy costs across 131 business districts in 46 countries, divided into six regions. Locations are ranked on a workstation basis and costs are expressed in US Dollars.
The British capital and Western Europe continued to dominate the top ten as global economic growth feed demand for office space in key business districts in 2006. But cities in North America accounted for the highest number of increases in the full list. New York City (Downtown) climbed 25 places to number 15 by recording a 63% year-on-year increase to $12,310. Seventy-six percent of the locations surveyed posted increases in occupancy cost per workstation.
Western Europe remained the most expensive region at $9,980 per workstation, as the premium over North America ($7,570) increased from 31% in 2005 to 32% last year. DTZ said in Western Europe, where costs increased in part due to a stronger Euro, London's West End, Paris and London (City) remained the top three most expensive locations. The Dublin office market remained buoyant, increasing to $14,740 while Munich, reflecting the recovery in the German market, booked a 12% year-on-year increase to $12,500.
Regional rankings in Central and Eastern European cities remained stable, though Kiev at $7,350 posted a 28% year-on-year increase. DTZ said this was a result of 'rapid business growth and excellent prospects for the Ukrainian market'.
The report also indicated that average space utilisation increased by 1% in North America and remained highest amongst the six global regions at 22 m2. In contrast, Asia Pacific and Western Europe dropped marginally by 1% to 13 m2 and 18 m2 respectively.
DTZ's top 10 of the most expensive occupancy locations is as follows:
(1) London West End $23,260
(2) Hong Kong $19,730
(3) Paris $17,770
(4) London City $17,690
(5) New York (Mid-town) $16,400
(6) Dublin $15,810
(7) Washington DC $14,580
(8) Tokyo $13,470
(9) Frankfurt $13,410
(10) Geneva 413,070
