Larry Schlesinger | 20 February 2013

Sydney remains ninth most expensive office rental market in the world: Cushman & Wakefield

The Sydney CBD market has maintained its ninth-placed ranking among the list of the most expensive locations in the world to rent office space.

Sydney has an occupancy cost of €992 per square metre, according to Cushman & Wakefield’s Office Space Across the World 2013 report

Occupancy costs include base rent, turnover rent and other outgoings and expenses.

The  top ten list is headed by London’s West End (€2,137 per square metre), which regained its crown from Hong Kong’s Central Business District (€1,505 per square metre),

The biggest upward move was made by Rio de Janeiro’s Zona Sul which went from eighth most expensive office market to third most expensive.

Managing director of Cushman & Wakefield Australia David Woolford says Sydney’s ninth place ranking in terms of global office occupancy costs confirms its position as a world class financial centre.

“This ranking reflects the premium standard of office stock available in Sydney and we expect Barangaroo will raise the bar even higher.

“It is interesting to note there is only a 6-10% differential between the destinations ranked 6 to 10 in this research and Sydney is consistently ranked in the top ten in terms of occupancy costs in the world,” he says.

Top 10 most expensive office locations by country

 

2012 rank

2013 rank

country

city

location

occupancy cost (€/sq.m/year)

Occupancy Cost (US$/sq.ft/year)

2

1

UK

London

West End

2,137

262

1

2

Hong Kong

Hong Kong

CBD

1,505

184

8

3

Brazil

Rio de Janeiro

Zona Sul

1,343

165

5

4

India

New Delhi

Connaught Place

1,324

162

3

5

Japan

Tokyo

CBD (5 Central Wards)

1,274

156

4

6

Russia

Moscow

CBD

1,141

140

6

7

China

Beijing

CBD

1,074

132

7

8

USA

New York

Midtown (Madison/5th Avenue)

1,052

129

9

9

Australia

Sydney

CBD

992

122

10

10

France

Paris

CBD

915

112

 Source: Cushman & Wakefield

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