Larry Schlesinger | 17 December 2012

Perth CBD moves up to 20th most expensive market to rent office space in the world: CBRE

Perth CBD moves up to 20th most expensive market to rent office space in the world: CBRE

An 11.8% annual rise in rents and a 9.9% annual increase in occupancy costs has propelled the Perth CBD into the top 20 most expensive office rental markets in the world, according to the September quarter semi-annual global office report from CBRE.

Perth ranked 20th most expensive prime office market to rent space, with an average rent per square metre cost of $850 and total occupancy costs of $1,003.

Rents and occupancy costs in the Perth CBD have soared on the back of demand for office space from businesses with the ties to the mining investment boom.

The Property Council of Australia recorded a vacancy rate of 4.2% in the Perth CBD in July, down from 7.8% in July 2011, with the city managing a net absorption rate of 115,000 square metres over the first six months of the year – nearly half the national net absorption rate of 243,000 square metres.

Sydney remains Australia’s most expensive prime CBD office market, ranking 14th on the CBRE list, one position up from six months ago. Prime Sydney rents have hardly moved over the past year (up 0.8%) at $1,048 per square metre, while occupancy costs have risen by 1.3% to total average occupancy cost of $1,232 per square metre.

Brisbane ranked 30th on the global list, one up from its ranking at the end of March, with a total occupancy cost of $818, up 1.7%, with rents up 1.3%.

Melbourne ($637 per square metre total occupancy cost) does not feature in the top 50, with the list headed by Hong Kong followed by Central London’s West End, Tokyo, Beijing and New Dehli.

San Francisco, which ranked 26th most expensive office rental market in the world, experienced the largest year-over-year increase, at 36.4%, of the 133 markets monitored by CBRE, driven by its “hot technology sector”.

Top 50 Most Expensive Office Markets as of September 30, 2012

 

Rank

Market

Occ. Cost (US$)

1

Hong Kong (Central), Hong Kong

246.30

2

London - Central (West End), United Kingdom

219.81

3

Tokyo (Marunouchi Otemachi), Japan

197.27

4

Beijing (CBD), China

184.95

5

New Delhi (Connaught Place - CBD), India

183.30

6

Beijing (Finance Street), China

179.57

7

Hong Kong (West Kowloon), Hong Kong

174.13

8

Moscow, Russian Federation

172.82

9

London - Central (City), United Kingdom

131.76

10

São Paulo, Brazil

130.07

11

Mumbai (Bandra Kurla Complex), India

122.19

12

Rio de Janeiro, Brazil

121.40

13

Paris Ile-de-France, France

119.78

14

Sydney, Australia

119.04

15

Shanghai (Pudong), China

116.36

16

New York (Midtown Manhattan), U.S.

114.30

17

Shanghai (Puxi), China

108.25

18

Geneva, Switzerland

105.28

19

Singapore, Singapore

104.66

20

Perth, Australia

96.91

21

Caracas, Venezuela

95.68

22

Washington, DC (Downtown), U.S.

94.51

23

Dubai, United Arab Emirates

92.56

24

Seoul (CBD), South Korea

91.28

25

Mumbai (Nariman Point - CBD), India

90.80

26

San Francisco (Downtown), U.S.

90.00

27

Zurich, Switzerland

87.98

28

Boston (Downtown), U.S.

87.50

29

Istanbul, Turkey

82.78

30

Brisbane, Australia

79.04

31

Luxembourg City, Luxembourg

77.94

32

Los Angeles (Suburban), U.S.

76.84

33

Stockholm, Sweden

76.35

34

New York (Downtown Manhattan), U.S.

74.93

35

Seoul (Yeouido), South Korea

74.27

36

Milan, Italy

74.21

37

Guangzhou, China

72.88

38

Bogota, Colombia

70.76

39

Calgary (Downtown), Canada

70.59

40

Aberdeen, United Kingdom

70.20

41

Manchester, United Kingdom

69.80

42

Edinburgh, United Kingdom

69.02

43

Taipei, Taiwan

68.57

44

Birmingham, United Kingdom

68.36

45

Toronto (Downtown), Canada

68.00

46

Vancouver (Downtown), Canada

67.20

47

Frankfurt am Main, Germany

66.31

48

Bristol, United Kingdom

65.10

49

Oslo, Norway

64.91

50

Glasgow, United Kingdom

64.31

Source: CBRE Global Research and Consulting

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