Although NYC office rents are slowing and incentives and concessions are on the rise, a recent Savills Studley Live-Work Index study—which compares housing and office rental costs on a per capita basis—found the Big Apple's now the world’s most expensive city for accommodating staff, with total annual cost per employee living and working in NYC at $114k, with Hong Kong and London behind at $101k and $100k, respectively.
London held the top spot for the last two and half years, but the post-Brexit pound drop forced London to be more competitive, reducing its occupation costs by 11%.
Brexit’s effect extends beyond just the two gateway cities, however, with Tokyo seeing increases in rents for residential and creative office properties and a strengthening yen. Rio de Janeiro also saw a boost in dollar terms, despite economic woes and lowered demand.
Lagos, Nigeria, on the other hand, saw both a 20% decrease in office rents and a 30% devaluation in currency, which could possibly improve the city’s affordability. In a similar vein, oil cities like Dubai and Moscow have also seen drops in office and residential rents as oil struggles.
Rents in European cities like Dublin and Berlin, however, have grown modestly as the euro gained strength—with Dublin in particular seeing a 6% increase in live/work ratio and big boost in office rents—but remain a good value for businesses looking to expand, the study notes.
