Asian cities are home to the world’s most expensive premium office space with an average of $110 per square foot, almost 25% higher than comparable office space in the America’s and 40% higher than the EMEA market. According to real estate company, JLL, their latest Premium Office Rent Tracker, shows the market with the most expensive premium office rent in the world is Hong Kong’s “Central District, followed by New York’s Midtown, London’s West End, Beijing’s Finance Street and Silicon Valley. In a shift from previous editions of the report, Chinese cities now make up for 5 of the world’s 10 most expensive office rents.
The top Chinese markets are Hong Kong’s Central, Beijing’s Finance Street, Beijing’s Central Business District, Shenzhen’s Futian district and Shanghai’s Pudong district. The other top Asian markets are Delhi and Tokyo’s Marunouchi District.
Hong Kong’s Central district continues to be the world’s most expensive office market with average costs of $323 per square foot per year, which is 70% more expensive than for comparable buildings in either New York or London.
In mainland China, companies continue to full up high-quality buildings in Beijing as soon as they are completed and there is a demand for companies to upgrade to better offices, especially in Beijing and Shanghai in order to expand their corporate presence. In Shanghai, domestic financial service firms continue to expand and want to have space in the central business district.
Asia also has some of the worlds most competitively priced premium space, with Bangkok, Kuala Lumpur and Manila being the top three most affordable premium office space markets.
Asian cities with a strong technology presence such as Beijing, Shenzhen and Tokyo save some of the highest office rents. JLL spokesman, Jeremy Sheldon said, “We continue to see a greater number companies from the technology sector targeting premium buildings to attract top talent and enhance their brand image.“
JLL’s Sheldon also noted that while cost is a key factor, companies selecting their office locations are putting priority on access to talent. “Firms are likely to continue focusing on office layouts that have innovative space offerings to make sure they meet employee needs, while driving effectiveness and engagement levels. This includes providing employees with more flexibility and choice over their working environment. High quality services, from food and beverage to recreation space, gyms and space to support well-being, are likely to become standard features in premium locations.”