25 novembre 2008

«London’s West End and Moscow remain the world’s two most expensive office markets, respectively, while Hong Kong’s CBD, Tokyo’s Inner Central District and Mumbai’s Nariman Point round out the top five, according to CB Richard Ellis Group, Inc. (CBRE) Research’s semi-annual Global MarketView/Office Occupancy Costs survey. The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended September 30, 2008.

The average rate of growth for office occupancy costs among the 172 markets monitored in the survey was 8%, almost double last year’s world inflation rate. Up 94.6%, Abu Dhabi, United Arab Emirates (UAE) had by far the fastest growing occupancy costs, with three of the top five fastest growing countries situated in the Middle East. The rise in occupancy costs in the UAE over the past twelve months has reflected market fundamentals—limited supply of quality office space and high demand from international firms, primarily law firms, financial institutions and real estate and construction companies planting a footprint in the UAE.

"Our current perceptions are greatly affected by the current economic malaise and we tend to forget how fast rents and occupancy costs were rising over the last 12 months," said Dr. Raymond Torto, CBRE’s Global Chief Economist. "Clearly the rate of change is generally slowing, and in some markets the pricing direction is down. The turn in rent trajectory will provide some relief to occupiers and angst to owners. However, unlike previous downturns, which have occurred simultaneously with extensive overbuilding, the real estate market globally today is in a stronger position to weather the difficulties than in the past."

Asia Pacific was the fastest growing region among markets in the top 50, at an average rate of 26.2%. Among the region’s ten entries into the top 50 fastest growing and second overall, Ho Chi Minh City, Vietnam, was up 51.4%. Multi-national corporation tenants have driven demand for the limited supply of prestige prime office buildings in that city; however Ho Chi Minh City’s rents largely surged in the fourth quarter of 2007 and the first half of 2008. Perth, Australia, was second in the region and fourth overall, up 45.2%, while Hong Kong’s CBD had the third largest increase in the region and 12th overall, up 29.1%.


Occupancy costs in the six Latin American markets that made the top 50 fastest growing rankings grew an average of 21.5%, with two new cities—Santo Domingo, Dominican Republic, and Lima, Peru—making the list. São Paulo, Brazil, led the region and was the seventh fastest growing market overall, up 34%. São Paulo’s occupancy cost increase reflects a shortage of prime office space combined with a relatively strong local economy supported by global demand for commodities and a growing middle class. Meanwhile, of the nine North American markets in the top 50 fastest growing rankings (down from the last report’s15 markets), occupancy cost growth rates averaged 14.5%, the slowest of all the regions covered.

Asia-Pacific

Hong Kong jumped into the top three most expensive cities globally, with occupancy costs rising to $231.59. Ho Chi Minh City dropped from the top spot to number two among the top 50 fastest growing cities, while Perth, Australia, jumped up 10 spots in the most expensive rankings, coming in at number 31.

Europe

London’s West End remained the world’s most expensive office market at $248.66, and Moscow retained its number two spot at $234.73. The City of London was next among the European markets and eighth most expensive overall, at $146.61. In Europe, occupancy costs grew fastest in Moscow and Rome, with increases of 29.8% and 29.5%, respectively.

Richard Holberton, Director EMEA Research CB Richard Ellis, said: "European cities still account for over half of the top 50 most expensive global office markets. The fact that Moscow is the only European location that appears in the global list of top ten fastest growing markets, however, reflects the fact that the economic climate has slowed occupier activity across Europe in recent months, reducing upward pressure on occupier costs. European markets as a group are expected to experience reduced occupier costs over the course of next year as landlords seek to secure tenants in a tougher business environment."

Americas

Five North American cities are among the world’s Top 50 most expensive office markets: Midtown Manhattan (15th at $98.08); Calgary CBD (38th at $66.58); suburban Los Angeles (41st at $63.58); Toronto CBD (43rd at $61.54); and Downtown New York City (48th at $59.16). In Latin America, São Paulo increased nine spots to 26th, at $75.13.

Top Ten Most Expensive Markets Top Ten Markets with Fastest Growing Occupancy Costs

(In US$ per sq. ft. per annum) (In local currency & measure)

1. London (West End), England 1. Abu Dhabi, UAE

2. Moscow, Russia 2. Ho Chi Minh City, Vietnam

3. Hong Kong (CBD) 3. Dubai, UAE

4. Tokyo (Inner Central), Japan 4. Perth, Australia

5. Mumbai, India 5. Tel Aviv, Israel

6. Dubai, UAE 6. Durban, South Africa

7. Tokyo (Outer Central), Japan 7. São Paulo, Brazil


8. London (City), England 8. Panama City, Panama

9. Singapore 9. Cape Town, South Africa

10. Hong Kong (Prime Districts) 10. Moscow, Russia

Note: The full Top 50 Most Expensive and Top 50 Markets with Fastest Growing Occupancy Costs charts are located at the end of this press release.

Global MarketView/Office Occupancy Costs is a survey of office occupation costs in 172 cities worldwide.

The Fastest Growing ranking is based upon occupancy costs in local currency and measure. The Most Expensive ranking is based upon occupancy costs in US$ per sq. ft. per annum.

The figures given in this release refer to occupancy cost. This represents rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market.

Top 50 Most Expensive Office Markets as of November 2008 (converted to U.S. dollars)