The Real Deal New York

Priciest office nabes in the world? Midtown not even close

New report shows ten markets are more expensive
December 18, 2014 01:25PM

Midtown Manhattan might be the most expensive office market in the U.S., but compared to locations worldwide, setting up shop in New York City is a relative bargain.

A report by CBRE Group shows that locations as diverse as Central in Hong Kong, Shanghai’s Pudong area and New Delhi’s Connaught Place all outstrip Midtown in average office occupancy costs, the Wall Street Journal reported.

The calculated costs, which include rent, taxes, and maintenance, were highest in London’s West End, at $274 per square foot. Midtown Manhattan costs were just $121 per square foot, putting it at No. 11 on the list.

In the 126 markets studied by CBRE, overall occupancy costs rose about 2.5 percent. Data showed prices are rising the fastest in Dublin, with costs skyrocketing 35 percent to $73 a foot.

Here are the 15 markets with the most expensive occupancy costs, by square foot:

  1. London West End, $273.63
  2. Hong Kong (Central), $250.61
  3. Beijing (Finance Street) $197.75
  4. Beijing (CBD), $189.39
  5. Moscow, $165.05
  6. New Delhi (Connaught Place – CBD), $158.47
  7. Hong Kong (West Kowloon), $153.65
  8. London City, $152.67
  9. Tokyo (Marunouchi Otemachi), $136.46
  10. Shanghai (Pudong), $127.89
  11. New York (Midtown Manhattan), $120.65
  12. San Francisco (Downtown), $114
  13. Paris $113.95
  14. Singapore, $112.91
  15. Shanghai (Puxi), $112.14

[WSJ] — Tess Hofmann