Office occupancy rates increase in major global cities

Work in an office space at the top of skyscraper in New York or in the centre of the Hong Kong Central Business District? Both might cost you an arm and a leg, and perhaps a few more body parts as 4 office spaces in these 2 cosmopolitan cities across the globe from each other have come up as some of the costliest commercial properties amongst 121 markets worldwide. Overall, office space costs have increased 1.9 per cent year on year.

NewYork1NewYork3An office space in Hong Kong West Kowloon topped the list at US$303 (S$420) psf per year. London and New York came next with a unit in London’s West End costing US$214 psf and one in New York’s Midtown at US$203 psf.

While many investors are going for residential properties as they have the potential of doubling up as a home in future, some savvier ones and perhaps those with more cash to spare are also buying up commercial properties. As companies expand globally, capital cities in many countries have found office occupancy rates rising.

The highest rise occupancy cost globally is Durban (South Africa) while Stockholm, Palma de Malloca, Belfast and Amsterdam followed closely. In the Americas alone, Buenos Aires, New York Midtown, Houston and Denver registered the biggest occupancy cost increase. And in the Asia-Pacific, Shanghai, Guangzhou, Bangalore were the biggest winners in terms of office occupancy.

And where is Singapore on the list of the top 100? Number 27 at US$85.02 psf.