OSATW 2014 Publication Updated

8/17/2019 OSATW 2014 Publication Updated

1/20

2014

OFFICE SPACE

ACROSS THE WORLD

A Cushman & Wakeeld Research Publication


2/20


3/201

CONTENTS

Global Summary & Outlook 2

Most Expensive Locations 4

Americas Overview 6

Asia Pacic Overview 7

EMEA Overview 8

Market Metrics 10

Technical Specications14

Contacts 15

OFFICE SPACE

ACROSS THE WORLD


INTRODUCTION

Welcome to the Cushman & Wakeeld global

Ofce Space Across the World publication for

2014. This report was prepared by the Cushman

& Wakeeld Research team to provide an analysis

of the global ofce market during 2013, as well

as discuss the industry’s main trends for the year

ahead. The primary focus of this report is prime

ofce rental performances and occupancy costsacross the globe, including a ranking of the most

expensive locations across the world in which

to occupy ofce space. The report also provides

a more in-depth rental and occupier overview

for each region, concluding with a detailed list

of market data pertaining to each ofce location.

The information and data provided in this report are based on a

comprehensive survey of Cushman & Wakeeld’s international

ofces, and the editors are extremely grateful to them for their

time, effort and assistance.

The Cushman & Wakeeld Research Group provides a strategic

advisory and supporting role to our clients. Consultancy projects

are undertaken on a local and international basis, providing in-depth

advice and analysis, detailed market appraisals and location and

investment strategies. For more information on what Research

can do for you, please visit the Contacts page of this report

(page 15). To gain access to all of Cushman & Wakeeld’s research

and publications globally, please visit the Research & Insight section

of our global website:

www.cushmanwakeeld.com/research


4/202

Global ofce rents moved up by 3% in 2013,

which is the third consecutive year of a similar

rental performance. While all three regions overall

witnessed a relatively slow pace of rental growth

over the year, certain areas – such as Africa and

the Middle East – saw a more buoyant rentalmarket, with prime rents up by as much as 10%

in certain locations.

THE MOST EXPENSIVE GLOBAL MARKETS

The most expensive ofce market globally was London (West

End), which retained its position ahead of Hong Kong in second

place. Prime rents in London continued to move up during 2013,

bolstered by strong occupier demand and a declining supply of

high-quality space. With rents largely unchanged in Hong Kong

over the year, the gap in total occupancy costs between Londonand Hong Kong has, in fact, widened.

New Delhi’s Connaught Place fell from fourth position to eighth

despite prime rents being unchanged in 2013. This was primarily

the result of an appreciation in both the US Dollar and Euro

against the Indian Rupee in 2013, causing a shift in New Delhi’s

position in terms of global occupancy costs. Similarly, exchange

rate uctuations with the Japanese Yen caused Tokyo to fall

behind other comparable markets like Beijing in the overall

ranking – despite prime rents in both cities remaining largely

unchanged over the year.


% of countries showingrental growth

% of countries showingstable rents

Average Rental Change 3%

% of countries showingrental declines

46% 25% 28%

RENTAL PERFORMANCE IN THE YEAR TO DEC 2013

2014

GLOBAL SUMMARY AND OUTLOOK


5/203

OCCUPIER TRENDS

The global occupier market in 2013 was again characterised by

caution, as tenants across the globe remained concerned

regarding occupancy costs. Indeed, while some tenants were

looking to upgrade to more efcient, cost-ef fective ofce space,

many still sought to consolidate their existing operations. Over

the year, occupiers retained a focus on well located, high quality

space, and demand for this type of accommodation was steadily

rising by the end of 2013. As a result, the options open to

occupiers tightened, and almost half of the locations analysed

within the report witnessed prime rents increase over the year,

albeit marginally in most cases.

AMERICAS: A MIXED BAG

Coming out of the double-digit expansion seen in 2012, prime

rental growth in the Americas region was much more subdued,

with an overall regional rise of just 1%. Rental performance in

South America in 2013 was slow, with muted growth in the key

markets of Argentina and Brazil. Ongoing economic uncertainty in

both of these markets caused occupier demand to ease and primerents to fall over the year. Although both Ecuador and Colombia

saw burgeoning demand over the year, it was not enough to offset

the rental declines in these larger markets. In the year ahead,

South America is likely to face more uncertainty, with economic

concerns affect ing business condence in a number of locations,

although a steady rise in stabi lity across the region will be seen as

North America expands.

In the USA, demand levels improved in 2013 as the economy

recovered quicker than expected. Over the year, the USA saw

strong leasing activity, with business condence improving as the

year progressed. However, rental performances were mixed

across the country, with New York (Downtown) and Bostonoutperforming other markets. The outlook for 2014 is for the

USA to continue to see rental levels expand and thus drive the

overall regional growth in the year ahead.

ASIA PACIFIC: SLOW BUT STEADY

Rental growth was largely at across Asia Pacic over the year,

with an overall regional rental rise of just 2% in 2013. Economic

conditions were more fragile in the rst half of the year, although

growth in core markets of China and Japan advanced as the year

progressed. However, the region is well represented in terms of

the most expensive ofce locations on a global scale. Hong Kong

retained its position in second place overall, Beijing came in fourth

position and Tokyo in fth. Asia Pacic’s performance in 2014 is

anticipated to be similar to that seen in 2013, with slow and stable

demand anticipated to keep rental levels largely unchanged, albeit

with incentives becoming more competitive.

EUROPE: FROM MARKET TO MARKET

In Europe, a lack of high quality space characterised a number of

markets, including London and Frankfur t, and with demand in

these cities advancing over the year, prime rents were put under

upward pressure. Therefore, although the overall regional picture

was relatively muted over the year, there were notable differences

from market to market. Looking ahead, the rental trend seen in2013 will continue in to next year, with rents in the large majority

expected to see modest growth, with locations such as London

and Dublin experiencing more signicant rental growth for good

quality space.

OFFICE SPACE

ACROSS THE WORLD


R e n t ( E U R / s q . m

/ y e a r )

%

R e n t a l G r o w t h p e r Y e a r

0

300

450

600

750

900

150

0

5

10

15

20

25

30

50

35

40

45

SandtonCBD

DurbanCBD

DurbanLa Lucia/

Berea

QuitoCBD

JakartaCBD

Bangkok CBD

SingaporeCBD

DublinInt’l Fin.

Svcs. Centre

Cape TownCBD

New York Downtown

RENT RENTAL GROWTH

CITIES WITH THE LARGEST RENTAL GROWTH

% R

e n t a l C h a n g e p e r Y e a r

-20

-10

-5

0

10

15

-15

5

20102009 2011 2012 2013

GLOBAL AMERICAS ASIA PACIFIC EMEA

RENTAL PERFORMANCE IN THE 5 YEARS TO DEC 2013

“Prime rents in London continued to move

up during 2013, bolstered by strong

occupier demand and a declining supply

of high-quality space.”


6/204

€2,500€2,000€1,500€1,000€500€0

2014

RANK

2013

RANK

LOCATION

1

2

6

7

5

8

3

4

10

9

OCCUPANCY COST PER SQ. M. PER YEAR

14

13

11

21

12

15

n/a

16

17

18

19

25

22

24

31

26

27

29

23

32

30

n/a

4

3

2

1

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

30

31

32

33

34

34

28

RENT

ADDITIONAL COSTS

29

MOST EXPENSIVE LOCATIONS BY COUNTRY (€/SQM/YEAR)

€2,122

€1,432

€1,092

€1,027

€1,003

€993

€991

€959

€895

€844

€803

€777

€756

€734

€718

€661

€659

€593

€572

€556

€540

€536

€506

€505

€485

€469

€457

€442

€441

€439

€434€432

€427

€427

London, UK West End

Hong Kong, Hong Kong Central

Moscow, Russia CBD

Beijing, China CBD

Tokyo, Japan

CBD (5 Central Wards)

New York, USA Midtown (Madison/5th Av.)

Rio de Janeiro, Brazil Zona Sul

New Delhi, India Connaught Place

Paris, France CBD

Sydney, Australia CBD

Singapore, Singapore CBD

Luxembourg, Luxembourg City CBD

Oslo, Norway CBD

Dubai, UAE DIFC

Geneva, Switzerland CBD

Almaty, Kazakhstan CBD

Doha, Qatar CBD

Stockholm, Sweden CBD

Istanbul , Turkey CBD (Levent)

Milan, Italy Centre

Munich, Germany CBD

Taipei, Taiwan CBD (Xinyi Planned Area)

Amsterdam, Netherlands Zuidas

Beirut, Lebanon CBD

Dublin, Ireland CBD (2/4 Districts)

Jakar ta, Indonesia CBD

Tel Aviv, Israel CBD

Vancouver, Canada CBD

Ho Chi Minh City, Vietnam CBD

Madrid, Spain CBD

Seoul, South Korea

CBD

Helsinki, Finland CBD

Tbilisi, Georgia CBD

Caracas, Venezuela CBD


2014


7/205

LOCATION RENT

ADDITIONAL COSTS

OFFICE SPACE

ACROSS THE WORLD

MOST EXPENSIVE LOCATIONS BY COUNTRY

€2,500€2,000€1,500€1,000€500€0

2014

RANK

2013

RANK

20

36

33

35

37

39

44

38

40

43

OCCUPANCY COST PER SQ. M. PER YEAR

42

47

41

45

48

46

52

50

57

54

49

55

51

60

53

61

n/a

58

56

n/a

62

63

38

37

36

35

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

64

65

66

67

59

63

€426

€406

€395

€393

€373

€358

€345

€343

€343

€342

€339

€331

€318

€306

€298

€289

€258

€257

€242

€238

€235

€234

€231

€227

€227

€223

€222

€221

€207

€179

€179

€179

€150

Bogotá, Colombia Nogal

Auckland, New Zealand CBD

Warsaw, Poland CBD

Brussels, Belgium Quartier Leopold

Kyiv, Ukraine

CBD

Athens, Greece Syntagma Square

Copenhagen, Denmark Harbour Area

Kuala Lumpur, Malaysia CBD

Budapest, Hungary CBD

Vienna, Austria Central

Bucharest, Romania CBD

Buenos Aires, Argentina Catalinas

Prague, Czech Republic CBD

Mexico City, Mexico CBD

Lisbon, Portugal Av. de Liberdade

Santiago, Chile Las Condes

Bangkok, Thailand CBD

Bratislava, Slovakia CBD

Belgrade, Serbia CBD

Vilnius, Lithuania CBD

Manila, Philippines Makati

Lima, Peru CBD

Manama, Bahrain Financial Harbour

Riga, Latvia CBD

Ljubljana, Slovenia CBD

Soa, Bulgaria CBD

Skopje, FYRO Macedonia CBD

Tallinn, Estonia CBD

Zagreb, Croatia CBD

Quito, Ecuador CBD

Amman, Jordan

CBD

Limassol, Cyprus CBD

Sandton, South Africa CBD



8/206

AMERICAS

Although rental performance across the Americas

barely changed in 2013, there was a notable

polarisation in performances between North and

South America. Regional rental growth was fuelled

by increases in both the USA and Mexico, where

prime rents moved up by 4% and 6%, respectively.

Most South American locations, however, sawprime rents decline in 2013, with Colombia, and

2013’s frontrunner – Brazil, experiencing the

largest year-over-year declines. Consequently, this

divergence between the two regions gave way for

New York City (Madison/5th Avenue) to retake

the title of the most expensive market in the

Americas region, pushing last year’s number one,

Rio de Janeiro (Zona Sul), into second place.

NORTH AMERICA HOLDING FIRM

In 2013, many ofce markets in the USA witnessed robust demand as

the economy started to improve at a rate stronger than previously

expected, although performances were not uniform across the

entire country – for example, New York and Boston both

experienced double-digit rental growth over the year in certain key

submarkets, far outperforming many of the other markets within the

country. Boston’s advancement was underpinned by strong activity

particularly from the nancial and professional services sector,

which pushed down vacancy and, subsequently, saw rents accelerate

by 16% in 2013. In New York, steady interest from the technology,

legal, advertising, media and health care sectors helped to sustain theCBD submarkets. New completions and demand from these active

industries helped to push prime rents up by 17% in the Downtown

submarket over the year.

In Mexico the market was healthy over the year as both supply and

demand remained largely consistent, and this steady demand for

high-quality space helped to push support a 5% rise in rental rates

in Mexico City. Canada as a whole was slightly more subdued than

its other North American markets, with rents holding up in the

majority of the key cities in 2013.

BRAZIL EASES BACK

The Brazilian economy, the principal driver within South America,

was weaker than anticipated in 2013, which had a subsequent

dampening on both business condence and occupier demand.

Furthermore, cities such as Bogotá and Buenos Aires saw supply

outstrip demand over the year, resulting in prime rents easing in 2013.

In Rio de Janeiro (Zona Sul) prime rents fell by 7% over the year as

occupiers continued to be cautious from the continued economic

uncertainty, as well as the impending election in the latter half of

2014. However, the anticipation of the forthcoming World Cupand Olympic games over the next few years has brought a surge of

infrastructure developments to the city, many of which are already

underway, and it is hoped that these improvements will boost

Rio’s attractiveness to international occupiers in the longer term.

T o t a l O c c u p a n c y C o s t ( U S D / s q . f t / y e a r )

0

30

60

90

150

120

New York Midtown

Rio de JaneiroZona Sul

Sao PauloFaria Lima

WashingtonEast End

BostonBack Bay

San FranciscoNOMAFinancialDistrict

New York Downtown

MiamiBrickellAvenue

BrasiliaCBD

Los AngelesWest

NORTH AMERICA SOUTH AMERICA

MOST EXPENSIVE LOCATIONS: AMERICAS


2014

R e n t

( U S D / s q . f t / y e a r )

%


0

25

37.5

50

62.5

75

12.5

0

5

10

15

20

25

30

QuitoCBD

New York Downtown

BogotaNogai

BostonBack Bay

Mexico CityCBD

SanFranciscoNOMAFinancialDistrict

LimaCBD

SeattleFinancialDistrict

BrasiliaCBD

Los AngelesWest

RENT RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: AMERICAS


9/207

THE YEAR AHEAD

Looking ahead into 2014, with the foundation for stronger

conditions in 2014 set in place, it is anticipated that the USA will

continue to propel the region in terms of a buoyant economic

growth. This should in turn have a positive effect on occupier

demand and consequently help retain the upwards pressure on

prime rents. In South America, the burgeoning markets of

Colombia, Chile and Peru are anticipated to sustain any growth for

the area. However, the outlook for Brazil – one of the key markets

for the region is uncertain, with factors such as high ination and

an upcoming election becoming possible obstacles to future

growth. As a result, business condence and occupier demand

are both expected to suffer from this and remain subdued, which

could see further falls in prime rents over the course of the year.

ASIA PACIFIC

Rental performance throughout Asia Pacic in 2013

largely followed the subdued pattern seen in 2012,

with prime rents moving up by 2%. Despite easing in

the rst half of the year, the economic climate

across the region improved as the year progressed,

with China and Japan expanding. However, these

positive performances were not enough to sustain

regional growth, and consequently, many occupiers

were notably cautious over the majority of the year.

HONG KONG KEEPS ITS REGIONAL CROWN

Hong Kong was the second most expensive market globally and

was also the most expensive location in Asia Pacic, followed by

Beijing and Tokyo in second and third for the region, respectively.

Occupier demand levels were muted in Hong Kong, with activity

from larger occupiers in particular easing noticeably over the year.

However, going forward, Hong Kong’s position as one of the most

important global nancial centres is anticipated to help buoy

demand levels into 2014. Prime rents in Hong Kong are expected to

remain largely stable with relatively few completions anticipated.

NORTH ASIA & INDIA: SLOWING RENTAL GROWTH

In Beijing, prime rents eased marginally over the year, albeit gures

starting at a very high base in early 2013. Indeed, the high rents

within the CBD have caused many occupiers to rationalise their

space as a way to cut down on costs. As China’s GDP growth

remains steady, the continued development of the tertiary sector

within Beijing has maintained momentum. However, at the current

time there are concerns of future oversupply, leading many

developers to review their development pipeline carefully.With occupier demand still relatively robust, prime rents are

anticipated to be fairly at in 2014.

Rental performance across India has been mixed, with the major

markets remaining stable whilst others witnessed minor corrections.

New Delhi’s CBD (Connaught Place) has remained the most

expensive location across the country in 2013 due to its strong

rental levels holding rm. With the domestic economy regaining

some momentum towards the end of the year, occupier demand

moved up signicantly in the nal quarter of the year, helping to

push prime rents upwards in select cities that have low vacancies.

OFFICE SPACE

ACROSS THE WORLD


T o t a l O c c u p a n c y C o s t ( U S D / s q . f t / y e a r )

0

65

97.5

130

195

32.5

162.5

Hong KongCentral

BeijingCentral

TokyoCBD

(5 CentralWards)

New DelhiConnaught

Place

ShanghaiLujiazui

(Pudong)

SydneyCBD

SingaporeCBD

MumbaiBandra Kurla

Complex

BrisbaneCentre

ShenzhenFutian

NORTH ASIA & INDIA SOUTH ASIA & PACIFIC

MOST EXPENSIVE LOCATIONS: ASIA PACIFIC

“Half of the surveyed countries in the

Americas region witnessed prime rents

rise in 2013.”


10/208

The prime ofce market in Tokyo saw rental declines earlier in

2013; however, levels quickly bounced back to previous gures as

the economy saw conditions gradually regain momentum.

Business condence increased over the year, and consequently

many occupiers have become less cautious. With demand picking

up, prime space in some building is becoming scarce, and therefore

a rise in prime rents may occur over the next year.

BURGEONING MARKETS

The Metro Manila ofce market was generally positive throughout

2013, primarily driven by the continued development of the

Business Process Outsourcing (BPO) sector. Rents continued

to climb due to strong absorption gures, especially in the CBD

markets of Makati and Bonifacio Global City, while vacancy

remained low despite the growth of ofce supply. Corporate

occupiers continue to expand across major hubs, taking advantage

of the talented pool and the lower wages of ofce workers in

emerging cities.

The most notable rental growth over the year was seen in both

Indonesia and Thailand, where prime rents rose by 20% in both

Jakarta and Bangkok, respectively. In Indonesia, the improving

domestic economy in 2013 translated into sturdy occupier

demand and thus expanding take-up levels in Jakarta. In Thailand,

limited supply and steady demand characterised the market in

Bangkok and subsequently resulted in prime rents increasing over

the year. However, the 2014 outlook for Thailand is more volatile

due to the ongoing political uncertainty in the country. If political

indecision is prolonged, some occupiers will take longer to

conclude transactions or may start to look at alternative locations.

WHAT’S IN STORE

A slow performance has become the new norm for Asia Pacic;

however, with regional GDP growth still hovering around 5.0-5.5%,

Asia Pacic is still ahead of the other regions as seen in 2013.

For 2014, a similar trajectory is anticipated, with slow but steady

conditions akin to the previous year supporting occupier demand

across the region. The key economies of China, Japan and markets

in Southeast Asia are anticipated to drive the region forward, with

ofce market demand in particular gaining momentum over the year.

EMEA

After ve years of nancial and economic

uncertainty within Europe, the region nally began

to see some stability return to the market as 2013

progressed, albeit with notable differences between

markets. However, this improvement in economic

conditions arrived too late to drive much growth

in prime ofces rents, with an overall regional

uplift of just 3%. Nevertheless, this is the highest

regional rise seen since 2008, before the depths

of the economic downturn.

LONDON LEADS THE WAY...

Although the overall regional rental growth was minimal, EMEA

still managed to possess the most expensive ofce market in the

world for 2013, as London (West End) retained its title for the

second consecutive year. The West End submarket is characterised

by strong demand amid a dwindling supply of modern space.

Indeed, with leasing act ivity building momentum over the year,

these conditions bolstered a 5% rise in prime ofce rents in 2013.

Rounding out the EMEA ranking, Moscow CBD followed London

(West End) in second place, with Paris CBD in third.


2014

R e n t ( U S D / s q . f t / y e a r )

%


0

40

60

80

100

120

20

0

5

10

15

20

25

JakartaCBD

Bangkok CBD

SingaporeCBD

ManilaMakati

TaipeiCBD

(XinyiPlanned Area)

ShenzhenFutian

SeoulCBD

ShanghaiLujiazui

(Pudong)

AucklandCBD

KolkataCBD

RENT RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: ASIA PACIFIC


11/209

Key European cities such as London and Frankfurt saw prime rents

appreciate in 2013, and this helped Western Europe outper form

Central and Eastern Europe (CEE) for the rst time since 2010.

Rents in CEE moved up by just 0.2% in 2013 whereas Western

Europe moved ahead by just over 2%. Furthermore, Dublin has

rebounded strongly in 2013, and a combination of solid demand

against a shortage of prime space has seen rents move up

signicantly, most notably in the IFS Centre submarket, where an

annual rise of 19% was the highest in Europe.

...BUT GROWTH SURGES IN MIDDLE EAST & AFRICA

The most signicant rental expansion within the EMEA region was

seen in the Middle East and Africa which witnessed rents increase

by 14%. Both Qatar and Dubai saw business condence pick-up

through the year, resulting in increased ofce market activity as

well as supporting prime rental growth of 10% and 5%, respectively.

However, it was South Africa that experienced the highest rental

growth in the EMEA region in 2013, with prime rents accelerating

by almost 30%. The South African market saw a notable increase

in the amount of large transactions over the year in the midst of a

particularly active occupational market.

OCCUPIER TREND: COST CONCERNS

While demand is strengthening in a number of European markets,

occupiers have remained cost conscious over the year, and

consequently space rationalisation and consolidations have

continued to drive a large component of regional market activity.

However, there has been a divergence between prime and

secondary space, with occupiers showing an increasing preference

for good quality space rather than secondary. As a result, it has

primarily been those locations that are experiencing a shortage of

prime space that have seen rents rise over the year.

GOING FORWARD

Looking ahead for the region, the overall lack of high quality space

is expected to push many occupiers towards moving sooner

rather than later, as they look to secure deals on the limited supply

of quality space that is available. With the development pipeline

anticipated to continue at low levels until the latter part of 2014,

prime rents are likely to remain under pressure. Overall it will still

be a mixed picture across Europe on a market-by-market basis in

terms of rental performance, but growth across the region is

expected to be slow but steady as condence gradually returns.

OFFICE SPACE

ACROSS THE WORLD


R e n t ( E U R / s q . m

/ Y e a r )

%


0

200

7 00

300

400

500

600

100

0

10

20

30

40

50

SandtonCBD

DurbanCBD

DurbanLa Lucia/Berea

DublinInt’l Fin.

Svcs. Centre

CapeTownCBD

RigaCBD

Dublin2/4 Districts

JohannesburgCBD

CapeTown

Bellville

LuxembourgCBD

COST RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: EMEA

T o t a l O c c u p a n c y C o s t ( E U R / s q . f t . y e a r )

0

500

1,000

1,500

2,500

2,000

LondonWest End

LondonCity

MoscowCBD

ParisCBD

LuxembourgCBD

OsloCBD

DubaiDIFC

GenevaCBD

AlmatyCBD

DohaCBD

WESTERN EUROPE CEE MEA

MOST EXPENSIVE LOCATIONS: EMEA

ANNUAL SUB-REGIONAL RENTAL GROWTH

1%Europe

13%Middle East & Africa


12/2010

COUNTRY CITY MEASURING

STANDARD

RENT QUOTED IN RENT ANNUAL

RENTAL

GROWTH

(%)

RENT USD/

SQ.FT/YR

RENT EUR/

SQ.M/YR NIA

RENTAL

TREND

2014

AMERICAS

Argentina Buenos Aires, Puetro Madero NIA USD/sq.m/mth 26.50 -5 29.54 230.77

Argentina Buenos Aires, Catalinas NIA USD/sq.m/mth 30.00 0 33.45 261.25

Brazil Sao Paulo, Faria Lima NIA BRL/sq.m/mth 161.68 -23 76.40 596.79

Brazil Rio de Janeiro, Zona Sul NIA BRL/sq.m/mth 254.36 -7 120.19 938.89

Brazil Brasilia, CBD NIA BRL/sq.m/mth 107.18 3 50.65 395.62

Canada Toronto, CBD GIA CAD/sq.ft/year 25.97 1 27.86 217.66

Canada Montreal, CBD GIA CAD/sq.ft/year 20.21 -4 21.68 169.38

Canada Calgary, CBD GIA CAD/sq.ft/year 33.87 1 36.34 283.87

Canada Vancouver, CBD GIA CAD/sq.ft/year 34.11 -1 36.30 285.88

Canada Ottawa, CBD GIA CAD/sq.ft/year 25.57 -4 27.44 214.31

Colombia Bogota, Nogal NIA USD/sq.m/mth 39.88 16 44.46 347.29

Colombia Bogota, Andino NIA USD/sq.m/mth 39.36 -6 43.88 342.76

Chile Santiago, Las Condes NIA USD/sq.m/mth 28.78 -1 32.08 250.62

Ecuador Quito, CBD NIA USD/sq.m/mth 17.26 23 19.24 150.30

Mexico Mexico City, CBD NIA USD/sq.m/mth 31.18 6 34.76 271.52

Peru Lima, CBDNIA

USD/sq.m/mth22.60 5 25.20 196.81

United States Atlanta, Midtown GIA USD/sq.ft/year 29.39 -4 32.33 252.53

United States Boston, Back Bay GIA USD/sq.ft/year 59.51 16 71.41 557.82

United States Chicago, West Loop GIA USD/sq.ft/year 39.26 -4 49.08 383.34

United States Houston, CBD GIA USD/sq.ft/year 38.49 0 46.19 360.79

United States Los Angeles, West GIA USD/sq.ft/year 49.68 2 57.13 446.27

United States Miami, Brickell Avenue GIA USD/sq.ft/year 43.80 1 65.26 509.78

United States New York, Downtown GIA USD/sq.ft/year 53.79 17 68.31 533.61

United States New York, Midtown(Madison/5th Avenue)

GIA USD/sq.ft/year 100.07 -1 127.09 992.72

United States Philadelphia, West of Broad GIA USD/sq.ft/year 27.30 1 31.94 249.50

United States San Francisco,

NOMA Financial District

GIA USD/sq.ft/year 58.50 5 70.20 548.35

United States Seattle, Financial District GIA USD/sq.ft/year 35.22 4 40.50 316.38

United States Washington, East End GIA USD/sq.ft/year 64.62 1 76.25 595.62

Venezuela Caracas, CBD GIA USD/sqm/month 46.00 0 51.28 400.58

COUNTRY SUMMARIES


2014

NET INTERNAL AREA


13/2011

OFFICE SPACE

ACROSS THE WORLD


STANDARD


RENTAL

GROWTH

(%)

RENT USD/

SQ.FT/YR

RENT EUR/

SQ.M/YR NIA

RENTAL

TREND

2014

ASIA PACIFIC

Australia Sydney , CBD NIA AUD/sq.m/year 1,300.00 3 108.05 844.05

Australia Melbourne, CBD NIA AUD/sq.m/year 800.00 0 66.49 519.41

Australia Brisbane, Centre NIA AUD/sq.m/year 870.00 1 72.31 564.86

China Beijing, CBD NIA CNY/sq.m/mth 665.00 -3 122.46 956.61

China Shanghai, Lujiazui (Pudong) NIA CNY/sq.m/mth 579.63 5 106.74 833.80

China Guangzhou, Pearl RiverNew City

NIA CNY/sq.m/mth 245.23 -10 45.16 352.76

China Chengdu, CBD NIA CNY/sq.m/mth 161.10 -11 29.67 231.74

China Shenzhen, Futian NIA CNY/sq.m/mth 329.00 9 60.59 473.27

Hong Kong Hong Kong, Central NIA HKD/sq.ft/mth 103.39 -1 160.01 1,249.92

India Mumbai, Bandra KurlaComplex

GEA INR/sq.ft/mth 285.12 0 82.42 643.81

India Mumbai, CBD GEA INR/sq.ft/mth 275.10 0 62.44 487.78

India New Delhi, Connaught Place GEA INR/sq.ft/mth 414.39 0 114.96 898.03

India Bengaluru, CBD GEA INR/sq.ft/mth 85.47 -3 23.69 185.04

India Chennai, CBD GEA INR/sq.ft/mth 75.50 0 19.53 152.56

India Hyderabad, Suburban(Madhapur, Gachibowli)

GEA INR/sq.ft/mth 41.19 2 9.99 78.03

India Pune, CBD GEA INR/sq.ft/mth 80.01 -4 20.70 161.67

India Kolkata, CBD GEA INR/sq.ft/mth 133.27 4 38.52 300.93

Indonesia Jakarta , CBD GIA USD/sq.m/mth 47.26 20 60.06 469.17

Japan Tokyo, CBD(5 Central Wards)

NIA JPY/tsubo/mth 40,000.00 0 128.34 1,002.56

South Korea Seoul, CBD GIA KRW/sq.m/mth 32 ,299.00 6 40.26 314.50

South Korea Seoul, Gangnam GIA KRW/sq.m/mth 26,933.00 -1 33.57 262.25

South Korea Seoul, Yeouido GIA KRW/sq.m/mth 21,149.00 -5 26.36 205.93

Malaysia Kuala Lumpur, CBD NIA MYR/sq.ft/mth 12.00 0 43.96 343.41

New Zealand Auckland, CBD NIA NZD/sq.m/mth 45.00 5 41.29 322.54

Philippines Manila, Makati NIA PHP/sq.m/mth 1,006.00 12 25.27 197.39

Philippines Manila, Or tigas NIA PHP/sq.m/mth 650.00 0 16.33 127.54

Singapore Singapore, CBD NIA SGP/sq.ft/mth 10.82 19 102.84 803.30

Taiwan Taipei, CBD(Xinyi Planned Area)

GEA TWD/ping/mth 5,698.0 0 10 64.47 503.65

Thailand Bangkok, CBD GIA THB/sq.m/mth 900.00 20 32.98 257.60

Vietnam Ho Chi Minh City, CBD NIA USD/sq.m/mth 45.70 -7 50.95 397.97

Vietnam Hanoi, CBD NIA USD/sq.m/mth 37.60 -6 41.92 327.43

COUNTRY SUMMARIES


NET INTERNAL AREA


14/2012


STANDARD


RENTAL

GROWTH

(%)

RENT USD/

SQ.FT/YR

RENT EUR/

SQ.M/YR NIA

RENTAL

TREND

2014

EMEA

Austria Vienna, Central NIA EUR/sq.m/mth 25.00 2 38.41 300.00

Austria Innsbruck, CBD NIA EUR/sq.m/mth 11.00 0 16.90 132.00

Belgium Brussels, Quartier Leopold GEA EUR/sq.m/year 275.00 -4 40.49 316.25

Belgium Antwerp, Centre GEA EUR/sq.m/year 145.00 0 21.35 166.75

Bulgaria Soa, CBD GEA EUR/sq.m/mth 12.50 0 22.08 172.50

Croatia Zagreb, CBD NIA EUR/sq.m/mth 14.50 -6 22.28 174.00

Cyprus Nicosia, CBD GEA EUR/sq.m/mth 14.00 -7 18.28 142.80

Cyprus Limassol, CBD GEA EUR/sq.m/mth 14.00 -13 18.28 142.80

Czech Republic Prague, CBD GIA EUR/sq.m/mth 20.25 -4 33.60 262.44

Czech Republic Brno, CBD GIA EUR/sq.m/mth 12.00 4 19.91 155.52

Denmark Copenhagen, Harbour Area GEA DKK/sq.m/year 1,800.00 0 34.59 270.23

Denmark Aarhus, CBD GEA DKK/sq.m/year 1,200.00 0 23.06 180.15

Estonia Tallinn, CBD GIA EUR/sq.m/mth 13.00 8 22.97 179.40

Finland Helsinki, CBD NIA EUR/sq.m/mth 32.00 0 49.16 384.00

France Paris, CBD NIA EUR/sq.m/year 800.00 -2 102.41 800.00

France Paris, La DefenseNIA

EUR/sq.m/year 530.00 -467.85

530.00France Lyon, CBD NIA EUR/sq.m/year 260.00 0 33.28 260.00

France Marseille, CBD NIA EUR/sq.m/year 240.00 0 30.72 240.00

FYRO Macedonia Skopje, CBD GIA EUR/sq.m/mth 13.50 0 23.23 181.44

Georgia Tbilisi, CBD NIA USD/sq.m/mth 40.00 0 44.59 348.33

Germany Berlin, CBD NIA EUR/sq.m/mth 22.00 0 33.80 264.00

Germany Frankfurt, CBD NIA EUR/sq.m/mth 37.00 9 56.84 444.00

Germany Hamburg, CBD NIA EUR/sq.m/mth 24.00 0 36.87 288.00

Germany Munich, CBD GIA EUR/sq.m/mth 32.00 2 57.83 451.76

Germany Dusseldorf, CBD NIA EUR/sq.m/mth 27.50 10 42.25 330.00

Greece Athens, Syntagma Square GEA EUR/sq.m/mth 22.00 0 39.88 311.52

Hungary Budapest, CBDGIA

EUR/sq.m/mth21.00 0

35.49277.20

Ireland Dublin, 2/4 Districts NIA EUR/sq.m/year 355.00 16 45.45 355.00

Ireland Dublin, Int’l Fin. Svcs. Centre NIA EUR/sq.m/year 231.00 19 29.57 231.00

Ireland Cork, Lapps Quay NIA EUR/sq.m/year 200.00 5 25.60 200.00

Italy Rome, Centre GEA EUR/sq.m/year 425.00 -6 58.76 459.00

Italy Milan, Centre GEA EUR/sq.m/year 475.00 -5 65.67 513.00

Kazakhstan Almaty, CBD GIA USD/sq.m/mth 60.00 9 76.92 600.87

Latvia Riga, CBD GIA EUR/sq.m/mth 14.00 17 22.58 176.40

Lithuania Vilnius, CBD GIA EUR/sq.m/mth 14.50 4 24.50 191.40

Luxembourg Luxembourg City, CBD GEA EUR/sq.m/mth 45.00 13 85.72 669.60

Netherlands Amsterdam, Zuidas GIA EUR/sq.m/year 365.00 1 54.97 429.41

Netherlands Rotterdam, CBD GIA EUR/sq.m/year 180.00 0 27.11 211.76

Norway Oslo, CBD GEA NOK/sq.m/year 4, 500.00 6 85.45 667.47

Norway Bergen, CBD GEA NOK/sq.m/year 2 ,250.00 2 42.72 333.74

Poland Warsaw, CBD GIA EUR/sq.m/mth 25.00 -6 41.48 324.00

Poland Krakow, CBD GIA EUR/sq.m/mth 15.00 0 24.89 194.40

COUNTRY SUMMARIES


2014

NET INTERNAL AREA


15/2013

OFFICE SPACE

ACROSS THE WORLD


STANDARD


RENTAL

GROWTH

(%)

RENT USD/

SQ.FT/YR

RENT EUR/

SQ.M/YR NIA

RENTAL

TREND

2014

EMEA

Poland Wroclaw, CBD GIA EUR/sq.m/mth 15.50 0 25.72 200.88

Portugal Lisbon, Av de Liberdade GIA EUR/sq.m/mth 18.50 0 31.26 244.20

Portugal Porto, CBD GIA EUR/sq.m/mth 13.50 0 22.81 178.20

Romania Bucharest, CBD GIA EUR/sq.m/mth 19.00 0 34.34 268.24

Romania Timisoara, CBD GIA EUR/sq.m/mth 12.00 4 21.69 169.41

Russia Moscow, CBD GIA USD/sq.m/year 1,200.00 0 127.09 992.74

Russia St.Petersburg, CBD GIA USD/sq.m/year 440.00 -8 46.60 364.01

Serbia Belgrade, CBD GIA EUR/sq.m/mth 15.00 0 25.81 201.60

Slovakia Bratislava, CBD GIA EUR/sq.m/mth 15.00 -3 24.89 194.40

Slovenia Ljubljana, CBD GIA EUR/sq.m/mth 11.00 -15 19.94 155.76

Spain Madrid, CBD GEA EUR/sq.m/year 294.00 0 45.16 352.80

Spain Barcelona, CBD GEA EUR/sq.m/year 213.00 -1 32.72 255.60

Sweden Stockholm, CBD NIA SEK/sq.m/year 4,650.00 1 67.26 525.42

Sweden Gothenburg, CBD NIA SEK/sq.m/year 2,450.00 0 35.44 276.84

Switzerland Zurich, CBD NIA CHF/sq.m/year 760.00 0 79.39 620.16

Switzerland Geneva, CBDNIA

CHF/sq.m/year800.00 0

83.56652.79

Turkey Istanbul, European side

(Levent)

GEA USD/sq.m/year 528.00 0 60.83 475.12

Turkey Ankara, CBD GEA USD/sq.m/year 276.00 0 31.80 248.36

Ukraine Kyiv, CBD GIA USD/sq.m/year 430.00 0 47.14 368.21

United Kingdom London, West End NIA GBP/sq.ft/year 110.00 5 182.18 1,423.11

United Kingdom London, City NIA GBP/sq.ft/year 57.50 5 95.23 743.90

United Kingdom Manchester, CBD NIA GBP/sq.ft/year 30.00 5 49.69 388.12

United Kingdom Birmingham, CBD NIA GBP/sq.ft/year 27.50 0 45.54 355.78

United Kingdom Belfast, CBD NIA GBP/sq.ft/year 13.00 4 21.53 168.19

United Kingdom Edinburgh, CBD NIA GBP/sq.ft/year 29.00 7 48.03 375.18

United Kingdom Glasgow, CBD NIA GBP/sq.ft/year 28.00 4 46.37 362.25

United Kingdom St.Peter Port, CBD NIA GBP/sq.ft/year 45.00 6 74.53 582.18

Bahrain Manama, Financial Harbour NIA BHD/sq.m/mth 8.00 0 23.66 184.79

Israel Tel Aviv, CBD GEA NIS/sq.m/mth 97.00 1 41.44 323.68

Israel Tel Aviv (Ramat Hahayal) GEA NIS/sq.m/mth 73.00 6 31.18 243.59

Jordan Amman, CBD GEA USD/sq.m/year 170.00 -11 19.58 152.98

Lebanon Beirut, CBD GEA USD/sq.m/year 450.00 0 51.64 403.40

Qatar Doha, CBD NIA QAR/sq.m/mth 230.00 10 70.41 550.04

South Africa Durban, CBD NIA ZAR/sq.m/mth 70.00 40 7.45 58.20

South Africa Durban, La Lucia/Berea NIA ZAR/sq.m/mth 135.00 35 14.37 112.25

South Africa Cape Town, CBD NIA ZAR/sq.m/mth 100.00 18 10.64 83.15

South Africa Cape Town, Bellville NIA ZAR/sq.m/mth 85.00 13 9.05 70.67

South Africa Johannesburg, CBD NIA ZAR/sq.m/mth 75.00 15 7.98 62.36

South Africa Sandton, CBD NIA ZAR/sq.m/mth 180.00 44 19.16 149.66

United Arab Emirates Abu Dhabi, CBD NIA AED/sq.m/year 2,000.00 0 50.59 395.16

United Arab Emirates Dubai, DIFC NIA AED/sq.ft/year 285.00 10 77.59 606.12

COUNTRY SUMMARIES


NET INTERNAL AREA


16/2014

TECHNICAL SPECIFICATION

COUNTRY LOCAL CURRENCY US DOLLAR EURO

Australia Dollar (AUD) 0.8946 0.6493

Bahrain Dinar (BHD) 2.6525 1.9249

Brazil Real (BRL) 0.4239 0.3076

Canada Dollar (CAD) 0.9412 0.6830

China Renminbi (CNY) 0.1652 0.1199

Denmark Krone (DKK) 0.1847 0.1340

Eurozone Euro (EUR) 1.3780 1.0000

Hong Kong Dollar (HKD) 0.1290 0.0936

India Rupee (INR) 0.0162 0.0117

Indonesia Rupiah (IDR) 0.0000822 0.0000595

Israel Shekel (ILS) 0.2881 0.2091

Japan Yen (JPY) 0.0095 0.0069

Malaysia Ringgit (MYR) 0.3053 0.2216

COUNTRY LOCAL CURRENCY US DOLLAR EURO

New Zealand Dollar (NZD) 0.8230 0.5973

Norway Kroner (NOK) 0.1648 0.1196

Philippines Peso (PHP) 0.0225 0.0164

Singapore Dollar (SGD) 0.7920 0.5748

South Korea Won (KRW) 0.0009 0.0007

South Africa Rand (ZAR) 0.0955 0.0693

Sweden Krona (SEK) 0.1557 0.1130

Switzerland Franc (CHF) 1.1244 0.8160

Taiwan Dollar (TWD) 0.0336 0.0244

Thailand Baht (THB) 0.0304 0.0221

United Arab Emirates Dirham (AED) 0.2723 0.1976

United Kingdom Pound (GBP) 1.6562 1.2019

United States Dollar (USD) 1.0000 0.7257

EXCHANGE RATES

Source: Financial Times, 31st December 2013. All currencies to four decimal places unless stated.

DEFINITIONS

For each location a standard denition of a prime unit is

employed to endeavor to make the results as comparable as

possible given varying local practices. Rents are often quoted

on different measurements bases, and for this reason we have

standardized the ofce rents used in this guide by adjusting the

rent to a net internal area basis. Some countries quote their

rents inclusive, and some exclusive, of service charges and

property taxes. With this in mind, in order to make a more

detailed comparison across the regions the total occupancy

costs were used. CBD ofce gures relate to new prime centre,

high specication units of a standard size commensurate with

demand in each location.

The Net Internal Areas gures have been calculated by

standardizing the oorspace measurements on which the

quoted rent is based. There are various efciency rates that are

relevant to different countries, and we have used a standard for

each country (unless stated). Cushman & Wakeeld Asia quote

all rents on a net usable area and quote ef fective rents, which

takes into account rent-free periods or capital contributions

where appropriate, although security deposits are not included.

These rents have not been adjusted. Direct Class A rents are

quoted in all US locations. Rents have been expressed in USD

per square foot per year and EUR per square meter per year,

converted using exchange rates as at December of the relevant

year. Rental growth gures are quoted in local currency unless

otherwise indicated. Total occupancy costs take into account

service charges and local taxes to allow direct comparison

between countries.

REPORT INFORMATION

This report was written by Barrie David and Erin Can of the

European Research Group, London. Further information

and copies of this report are available from Erin Can of the

European Research Group, London.

Telephone: +44 207 152 5206

Email: [email protected]

Gain access to all of Cushman &Wakeeld’s research and

publications globally by visiting our website. Covering global,

regional and local markets, our Research & Insight page

combines real business insight with emerging trends andmarket data. Visit now to download business briengs and

special reports, and open the doors to powerful insights aimed

at improving your productivity, protability and competitive

position. For industry-lead intelligence to support your real

estate and business decisions, go to Cushman & Wakeeld’s

Research and Insight at www.cushmanwakeeld.com/research


2014


17/2015

ALLIANCE & ASSISTANCE

This report has been prepared by Cushman & Wakeeld and its alliance partners globally. The information was collected and analysed

by the European Research Group from the Cushman & Wakeeld network, with particular thanks to the following ofces:

AUSTRIA Inter-pool Immobilien GmbH

BAHRAIN Cluttons LLP

BULGARIA Forton

CHANNEL ISLANDS Buckley & Company Ltd.

DENMARK RED – Property Advisers

ESTONIA Ober-Haus Real Estate Advisers

FINLAND Tuloskiinteistot Oy

FYRO MACEDONIA Forton

GEORGIA Veritas Brown

GREECE Proprius SA

IRELAND Lisney LLP

ISRAEL Inter Israel Real Estate Consultants

JORDAN Michael Dunn & Co S.A.L

KAZAKHSTAN Veritas Brown

LATVIA Ober-Haus Real Estate Advisers

LEBANON Michael Dunn & Co S.A.L

LITHUANIA Ober-Haus Real Estate Advisers

MALAYSIA YY Property Solutions

NEW ZEALAND Bayleys Realty Group Ltd.

NORWAY Eiendomshuset Malling & Co.

QATAR Cluttons LLP

ROMANIA Activ Property Services

SLOVENIA S-Invest d.o.o.

SOUTH AFRICA ProAfrica Property Services

SWITZERLAND SPG Intercity

THAILAND Nexus Property Consultants Ltd.

UNITED ARAB EMIRATES Cluttons LLP

GLOBAL OFFICE CONTACTS

THE AMERICAS

James M. Underhill

CEO

The Americas

Tel: +1 202 471 3600


ASIA PACIFIC

Richard Middleton

Executive Managing Director

Corporate Occupier & Investor Services

Asia Pacic

Tel: +85 2 2956 7075


EMEA

James Young

Head of EMEA Ofces

Tel: +44 207 152 5113


GLOBAL RESEARCH CONTACTS

THE AMERICAS

Maria T. Sicola

Executive Managing Director

Americas Research

Tel: +1 415 773 3542

Email: maria [email protected]

ASIA PACIFIC

Sigrid Zialcita

Managing Director

Asia Pacic Research

Tel: +65 6232 0875


EMEA

Barrie David

Senior Research Consultant

EMEA Research

Tel: +44 207 152 5937


CONTACTS


OFFICE SPACE

ACROSS THE WORLD


18/2016

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In addition to producing regular reports such as global rankings and localquarterly updates available on a regular basis, C&W also providescustomized studies to meet specic information needs of owners,occupiers and investors.

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Published by Corporate Communications.

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