These 5 Cities Have the Priciest Office Space in the World
Some cities—with skyscrapers and efficient public transpotation systems—are natural hot spots for HQs and offices. But as more companies flock to settle down in these major cities, rents begin to skyrocket. Here are five cities with the highest office rents, using data from Knight Frank's Skyscrapers Index.
1. Hong Kong
Price per SF: $255
Growth over the past six months: 1.9%
Office space in Hong Kong is so scant that prices are more than two times higher than anywhere else in the world. In general, the city has land scarcity problems, forcing the government to look into developing Kowloon East into an office hot spot.
2. New York City
Price per SF: $253
Growth over the past six months: 2%
The Big Apple is slated to see 26M SF of new office space, thanks to upcoming developments like Hudson Yard and the World Trade Center. Office buildings in NYC are expected to have 2015 yields of 4%.
3. Tokyo
Price per SF: $125
Growth over the past six months: 3.4%
The Shinkansen is the new bullet train that covers more than 1,600,000 miles in Japan, and has been pushing economic growth by cutting down on commuting time. Since all tracks lead to Tokyo, its property markets have seen increased demand.
4. London
Price per SF: $122
Growth over the past six months: 10.7%
The home of Big Ben is seeing its lowest office vacancy rate in over 14 years, as new technology and creative firms drive an economic renassaince.
5. San Francisco
Price per SF: $105
Growth over the past six months: 8.2%
As a technological hub, San Fran's rental growth has also been expanding at a great pace. Tower buildings have been particularly popular, posting an 8% growth clip.
