World's most expensive office locations

The world's most expensive office location — London's West End — offers rental costs at 223 EUR/m²/month. In second place is Hong Kong (Central) with rents at 212 EUR/m²/month, followed by Beijing's Financial Street offering rental rates of 163 EUR/m²/month. The fourth most expensive office location globally is Beijing's Central Business District, with rents at 157 EUR/m²/month. Rounding out the top five is India's capital, New Delhi, with its business district at 131 EUR/m²/month.

Warsaw drops in ranking

Warsaw, with total rental costs at 34 EUR/m²/month, ranks 85th. This marks a 14-place drop compared to the third quarter of 2014 and a 25-place decline year-on-year. Warsaw is the seventh city where rental costs have declined the most.

Expert comment CBRE

Joanna Mroczek, Director of Market Research and Marketing at CBRE, comments:
"The CBRE ranking includes all costs that tenants incur when leasing offices in the best buildings in Warsaw. As most new buildings are currently being constructed in the city center, we are witnessing a significant decline in rents in key locations. We anticipate that this trend will continue at least until the end of 2016 to mid-2017, when major new buildings such as Q22 and Warsaw Spire are leased out. In the following years, we can expect gradual stabilization."

Łukasz Kałędkiewicz, Senior Director of Office Space at CBRE adds:
"For several years, we have seen a tenant market that benefits from a very wide range of supply. More and more companies can afford locations closer to the city center in increasingly high-quality buildings. On the other hand, new projects are becoming more advanced both technically and aesthetically, and older buildings must improve their standards to remain competitive. In this way, the market is pushing for a higher quality of supply, benefiting not only tenants but also all residents of the capital. Falling rents in this context do not indicate stagnation, but rather increased activity by companies seeking new headquarters."

Research methodology

CBRE analyzed rental costs in the best office locations in 127 cities worldwide. Of the top 50, 19 markets were from the EMEA region, 20 from Asia-Pacific, and 11 from both Americas.

Top 10 most expensive office locations in the world

While comparative studies in U.S. dollars were affected by currency fluctuations, annual percentage changes in rental costs are based on local currencies and research methods, unaffected by currency value changes.

For the purposes of this press release, total rental rates have been recalculated to EUR/m²/year.

Top 10 ranking

Top 10 most expensive locations

1. London – West End, United Kingdom 223
2. Hong Kong (Central), Hong Kong 212
3. Beijing (Financial Street), China 163
4. Beijing (Central), China 157
5. New Delhi (Connaught Place - Central), India 131
6. Hong Kong (West Kowloon), Hong Kong 125
7. Tokyo (Marunouchi Otemachi), Japan 120
8. London – City, United Kingdom 119
9. Moscow, Russia 107
10. New York (Midtown Manhattan), USA 106

Summary

London's West End remains the world's most expensive office location, with rental costs of 223 EUR/m²/month, ahead of Hong Kong (212 EUR) and Beijing's Financial Street (163 EUR). Also in the top ten are New Delhi, Tokyo, Moscow, and New York.

Warsaw, with rental costs of 34 EUR/m²/month, ranks 85th, down 25 positions year-on-year. CBRE experts attribute this to high supply of new office buildings in the city center and predict further rent declines until major projects such as Q22 and Warsaw Spire are fully leased. The study covered 127 cities worldwide.