20 June 2019 | Herpreet Kaur Grewal
London's West End is the second most expensive office market in the world, according to data from real estate adviser CBRE.
CBRE's Global Prime Office Occupancy Costs report states that London's market is worth over £173.8 per square foot a year.
London is only surpassed by Hong Kong Central, which stands at about £254 per sq ft a year.
The 10 most expensive markets were the same centres as last year, although several have changed positions within the top category, states the report.
The biggest gainer within the top 10 was Midtown Manhattan (£155) in New York City, which climbed to the fourth most expensive market this year from the sixth last year. The City of London retained its number 10 position on the list at £110 per sq ft.
According to the report, the rising cost of leasing prime office space accelerated across the globe in the year ended March 31 because of continued economic growth, job gains and limited availability of prime space in certain markets. Of the 122 markets tracked by CBRE, 85 registered cost increases.
Additionally, the report found that average costs for leasing the best office space in each market's best location increased by 3.6 per cent globally in that 12-month period, outpacing the year-earlier gain of 2.4 per cent.
Gains were spread evenly across all regions, with each registering a steeper increase than last year. The Americas posted a 3.7 per cent gain, boosted in part by Midtown Manhattan's climb among the top 10. Europe, the Middle East and Africa (EMEA) notched a 3.5 per cent gain, with the region claiming four of the world's five fastest-rising markets.
The 24.7 per cent increase in Porto, Portugal, resulted at least partly from relocations and expansions by banking and consumer goods companies.
Asia Pacific (APAC) registered a 3.3 per cent increase, nearly doubling its growth rate of the year before. APAC already claims six of the 10 most expensive markets in the world. Singapore made a move into the top 20 with a 17.3 per cent increase this year.