The Cities Where Office Rental Rates Are Growing Fastest

Rental prices for office spaces in prime urban locations are increasing at a steady clip in most places around the globe, according to a new annual report from Cushman & Wakefield.

Rents increased most in the Asia Pacific region, growing 8 per cent in 2011. Hong Kong held its position as the most expensive place to rent office space, with London’s West End taking second place and Tokyo coming in third. Those positions were unchanged from the previous year, the report said.

Beijing and Shanghai led the way in rental growth in Asia, with Beijing rents growing by a staggering 75 per cent and overtaking Shanghai to have the most expensive office rental rates in mainland China. In Shanghai, rates grew by 30 per cent in 2011.

Moscow also experienced a major growth rate of 41 per cent, thanks to a combination of robust demand and a lack of prime space, according to Cushman & Wakefield.

In the U.S., most cities experienced steady rental growth. Prices grew the most in San Francisco–around 18 per cent–in large part due to expansion in the technology sector. Midtown Manhattan, which has the most expensive rental rates in the U.S., experienced stable growth in 2011 at around 4 per cent.

Some highlights from the report:

cushman rental chart

Photo: Cushman & Wakefield 2012

cushman rental chart

Photo: Cushman & Wakefield 2012

cushman rental chart

Photo: Cushman & Wakefield 2012

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