2014
OFFICE SPACEACROSS THE WORLD
A Cushman & Wakefield Research Publication
1
CONTENTSGlobal Summary & Outlook 2
Most Expensive Locations 4
Americas Overview 6
Asia Pacific Overview 7
EMEA Overview 8
Market Metrics 10
Technical Specifications 14
Contacts 15
OFFICE SPACE ACROSS THE WORLD
A Cushman & Wakefield Research Publication
INTRODUCTIONWelcome to the Cushman & Wakefield global Office Space Across the World publication for 2014. This report was prepared by the Cushman & Wakefield Research team to provide an analysis of the global office market during 2013, as well as discuss the industry’s main trends for the year ahead. The primary focus of this report is prime office rental performances and occupancy costs across the globe, including a ranking of the most expensive locations across the world in which to occupy office 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 office location.
The information and data provided in this report are based on a comprehensive survey of Cushman & Wakefield’s international offices, and the editors are extremely grateful to them for their time, effort and assistance.
The Cushman & Wakefield 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 & Wakefield’s research and publications globally, please visit the Research & Insight section of our global website:
www.cushmanwakefield.com/research
2
Global office 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 rental market, with prime rents up by as much as 10% in certain locations.
THE MOST EXPENSIVE GLOBAL MARKETS
The most expensive office 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 London and 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 fluctuations 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.
A Cushman & Wakefield Research Publication
% of countries showing rental growth
% of countries showing stable rents
Average Rental Change 3%
% of countries showing rental declines
46% 25% 28%
RENTAL PERFORMANCE IN THE YEAR TO DEC 2013
2014
GLOBAL SUMMARY AND OUTLOOK
3
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 efficient, cost-effective office 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 prime rents 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 affecting business confidence in a number of locations, although a steady rise in stability 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 confidence improving as the year progressed. However, rental performances were mixed across the country, with New York (Downtown) and Boston outperforming 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 flat across Asia Pacific over the year, with an overall regional rental rise of just 2% in 2013. Economic conditions were more fragile in the first 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 office locations on a global scale. Hong Kong retained its position in second place overall, Beijing came in fourth position and Tokyo in fifth. Asia Pacific’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 Frankfurt, 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 in 2013 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 significant rental growth for good quality space.
OFFICE SPACE ACROSS THE WORLD
A Cushman & Wakefield Research Publication
Ren
t (E
UR
/sq.
m/y
ear)
% R
enta
l Gro
wth
per
Yea
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
BangkokCBD
SingaporeCBD
DublinInt’l Fin.
Svcs. Centre
Cape TownCBD
New YorkDowntown
RENT RENTAL GROWTH
CITIES WITH THE LARGEST RENTAL GROWTH
% R
enta
l Cha
nge
per Y
ear
-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.”
4
€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)
Jakarta, 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
A Cushman & Wakefield Research Publication
2014
5
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
Sofia, 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
A Cushman & Wakefield Research Publication
6
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, saw prime 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 office 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 financial 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 the CBD 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 confidence 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 Cup and 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.
Tota
l Occ
upan
cy C
ost
(USD
/sq.
ft/y
ear)
0
30
60
90
150
120
New YorkMidtown
Rio deJaneiro
Zona Sul
Sao PauloFaria Lima
WashingtonEast End
BostonBack Bay
San FranciscoNOMAFinancialDistrict
New YorkDowntown
MiamiBrickellAvenue
BrasiliaCBD
Los AngelesWest
NORTH AMERICA SOUTH AMERICA
MOST EXPENSIVE LOCATIONS: AMERICAS
A Cushman & Wakefield Research Publication
2014
Ren
t (U
SD/s
q.ft
/yea
r)
% R
enta
l Gro
wth
per
Yea
r
0
25
37.5
50
62.5
75
12.5
0
5
10
15
20
25
30
QuitoCBD
New YorkDowntown
BogotaNogai
BostonBack Bay
Mexico CityCBD
San FranciscoNOMAFinancialDistrict
LimaCBD
SeattleFinancialDistrict
BrasiliaCBD
Los AngelesWest
RENT RENTAL GROWTH
CITIES WITH LARGEST RENTAL GROWTH: AMERICAS
7
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 inflation and an upcoming election becoming possible obstacles to future growth. As a result, business confidence 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 Pacific in 2013 largely followed the subdued pattern seen in 2012, with prime rents moving up by 2%. Despite easing in the first 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 Pacific, 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 financial 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 figures 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 flat 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 firm. With the domestic economy regaining some momentum towards the end of the year, occupier demand moved up significantly in the final quarter of the year, helping to push prime rents upwards in select cities that have low vacancies.
OFFICE SPACE ACROSS THE WORLD
A Cushman & Wakefield Research Publication
Tota
l Occ
upan
cy C
ost
(USD
/sq.
ft/y
ear)
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.”
8
The prime office market in Tokyo saw rental declines earlier in 2013; however, levels quickly bounced back to previous figures as the economy saw conditions gradually regain momentum. Business confidence 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 office 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 figures, especially in the CBD markets of Makati and Bonifacio Global City, while vacancy remained low despite the growth of office supply. Corporate occupiers continue to expand across major hubs, taking advantage of the talented pool and the lower wages of office 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 Pacific; however, with regional GDP growth still hovering around 5.0-5.5%, Asia Pacific 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 office market demand in particular gaining momentum over the year.
EMEA
After five years of financial and economic uncertainty within Europe, the region finally 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 offices 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 office 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 activity building momentum over the year, these conditions bolstered a 5% rise in prime office rents in 2013. Rounding out the EMEA ranking, Moscow CBD followed London (West End) in second place, with Paris CBD in third.
A Cushman & Wakefield Research Publication
2014
Ren
t (U
SD/s
q.ft
/yea
r)
% R
enta
l Gro
wth
per
Yea
r
0
40
60
80
100
120
20
0
5
10
15
20
25
JakartaCBD
BangkokCBD
SingaporeCBD
ManilaMakati
TaipeiCBD
(Xinyi Planned Area)
ShenzhenFutian
SeoulCBD
ShanghaiLujiazui
(Pudong)
AucklandCBD
KolkataCBD
RENT RENTAL GROWTH
CITIES WITH LARGEST RENTAL GROWTH: ASIA PACIFIC
9
Key European cities such as London and Frankfurt saw prime rents appreciate in 2013, and this helped Western Europe outperform Central and Eastern Europe (CEE) for the first 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 significantly, 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 significant 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 confidence pick-up through the year, resulting in increased office 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 confidence gradually returns.
OFFICE SPACE ACROSS THE WORLD
A Cushman & Wakefield Research Publication
Ren
t (E
UR
/sq.
m/Y
ear)
% R
enta
l Gro
wth
per
Yea
r
0
200
700
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
Tota
l Occ
upan
cy C
ost
(EU
R/s
q.ft
.yea
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
10
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, CBD NIA USD/sq.m/mth 22.60 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
A Cushman & Wakefield Research Publication
2014
NET INTERNAL AREA
11
OFFICE SPACE ACROSS THE WORLD
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
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 River New 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 Kurla Complex
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, Ortigas 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 5,698.00 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
A Cushman & Wakefield Research Publication
NET INTERNAL AREA
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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
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 Sofia, 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 Defense NIA EUR/sq.m/year 530.00 -4 67.85 530.00
France 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, CBD GIA EUR/sq.m/mth 21.00 0 35.49 277.20
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
A Cushman & Wakefield Research Publication
2014
NET INTERNAL AREA
13
OFFICE SPACE ACROSS THE WORLD
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
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, CBD NIA CHF/sq.m/year 800.00 0 83.56 652.79
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
A Cushman & Wakefield Research Publication
NET INTERNAL AREA
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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 definition 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 office 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 office figures relate to new prime centre, high specification units of a standard size commensurate with demand in each location.
The Net Internal Areas figures have been calculated by standardizing the floorspace measurements on which the quoted rent is based. There are various efficiency rates that are relevant to different countries, and we have used a standard for each country (unless stated). Cushman & Wakefield Asia quote all rents on a net usable area and quote effective 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 figures 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 5206Email: [email protected]
Gain access to all of Cushman &Wakefield’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 and market data. Visit now to download business briefings and special reports, and open the doors to powerful insights aimed at improving your productivity, profitability and competitive position. For industry-lead intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Research and Insight at www.cushmanwakefield.com/research
A Cushman & Wakefield Research Publication
2014
15
ALLIANCE & ASSISTANCE
This report has been prepared by Cushman & Wakefield and its alliance partners globally. The information was collected and analysed by the European Research Group from the Cushman & Wakefield network, with particular thanks to the following offices:
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. UnderhillCEO The AmericasTel: +1 202 471 3600Email: [email protected]
ASIA PACIFIC
Richard Middleton Executive Managing DirectorCorporate Occupier & Investor Services Asia PacificTel: +85 2 2956 7075Email: [email protected]
EMEA
James YoungHead of EMEA OfficesTel: +44 207 152 5113Email: [email protected]
GLOBAL RESEARCH CONTACTS
THE AMERICAS
Maria T. SicolaExecutive Managing DirectorAmericas ResearchTel: +1 415 773 3542Email: [email protected]
ASIA PACIFIC
Sigrid ZialcitaManaging DirectorAsia Pacific ResearchTel: +65 6232 0875Email: [email protected]
EMEA
Barrie DavidSenior Research ConsultantEMEA ResearchTel: +44 207 152 5937Email: [email protected]
CONTACTS
A Cushman & Wakefield Research Publication
OFFICE SPACE ACROSS THE WORLD
16
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Published by Corporate Communications. ©2014 Cushman & Wakefield. All rights reserved.
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