London’s West End reclaims global office space top spot
London’s West End is now the most expensive office destination in the world, according to a report released by Cushman & Wakefield, the commercial real estate brokerage and consultancy firm.
It is the first time the title has been regained since the start of the financial crisis in 2008, with the district leapfrogging the office markets of Hong Kong’s central business district in the costliest office space charts.
A scarcity of office space in London was attributed to the West End overtaking Hong Kong as the world’s most expensive office destination. With rents up by 2% compared to that of the same time last year, prices per square foot of office space now stand at £169.
Commenting on the findings, head of London markets for Cushman & Wakefield, Digby Flower, said: “As a truly global city, London’s appeal continues unabated. In conjunction with a scarcity of good quality stock prime rents have increased over the year. Equally importantly, we expect rents to grow further as we get into recovery mode.”
In addition, the report identified a global rise in prime office rents of 3%, with the growth largely driven by the encouraging signs of economic growth in South America - specifically in the Brazilian and Colombian markets.