OFFICE SPACE ACROSS THE WORLD 2014
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OFFICE SPACE
ACROSS THE WORLD
2014
A Cushman & Wakefield Research Publication
OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
INTRODUCTION CONTENTS
Welcome to the Cushman & Wakefield global Global Summary & Outlook 2
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 Most Expensive Locations 4
expensive locations across the world in which
to occupy office space. The report also provides Americas Overview 6
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 Asia Pacific Overview 7
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
EMEA Overview 8
Market Metrics 10
Technical Specifications 14
Contacts 15
1
2014
A Cushman & Wakefield Research Publication
GLOBAL SUMMARY AND OUTLOOK
Global office rents moved up by 3% in 2013, THE MOST EXPENSIVE GLOBAL MARKETS
which is the third consecutive year of a similar The most expensive office market globally was London (West
rental performance. While all three regions overall End), which retained its position ahead of Hong Kong in second
witnessed a relatively slow pace of rental growth place. Prime rents in London continued to move up during 2013,
bolstered by strong occupier demand and a declining supply of
over the year, certain areas – such as Africa and high-quality space. With rents largely unchanged in Hong Kong
the Middle East – saw a more buoyant rental over the year, the gap in total occupancy costs between London
market, with prime rents up by as much as 10% and Hong Kong has, in fact, widened.
in certain locations. New Delhi’s Connaught Place fell from fourth position to eighth
despite prime rents being unchanged in 2013. This was primarily
RENTAL PERFORMANCE IN THE YEAR TO DEC 2013 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
46% 25% 28% ranking – despite prime rents in both cities remaining largely
unchanged over the year.
% of countries showing % of countries showing % of countries showing
rental growth stable rents rental declines
Average Rental Change 3%
2
OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
ASIA PACIFIC: SLOW BUT STEADY
CITIES WITH THE LARGEST RENTAL GROWTH
Rental growth was largely flat across Asia Pacific over the year,
900 50
with an overall regional rental rise of just 2% in 2013. Economic
45
750 conditions were more fragile in the first half of the year, although
40
% Rental Growth per Year
growth in core markets of China and Japan advanced as the year
Rent (EUR/sq.m/year)
35
600
30 progressed. However, the region is well represented in terms of
450 25 the most expensive office locations on a global scale. Hong Kong
20 retained its position in second place overall, Beijing came in fourth
300
15
position and Tokyo in fifth. Asia Pacific’s performance in 2014 is
10
150 anticipated to be similar to that seen in 2013, with slow and stable
5
0 0
demand anticipated to keep rental levels largely unchanged, albeit
Sandton
CBD
Durban
CBD
Durban
La Lucia/
Quito
CBD
Jakarta
CBD
Bangkok Singapore Dublin Cape Town New York
CBD CBD Int’l Fin. CBD Downtown
with incentives becoming more competitive.
Berea Svcs. Centre
RENT RENTAL GROWTH
RENTAL PERFORMANCE IN THE 5 YEARS TO DEC 2013
OCCUPIER TRENDS 15
The global occupier market in 2013 was again characterised by 10
% Rental Change per Year
caution, as tenants across the globe remained concerned 5
regarding occupancy costs. Indeed, while some tenants were 0
looking to upgrade to more efficient, cost-effective office space,
-5
many still sought to consolidate their existing operations. Over
-10
the year, occupiers retained a focus on well located, high quality
space, and demand for this type of accommodation was steadily -15
rising by the end of 2013. As a result, the options open to -20
occupiers tightened, and almost half of the locations analysed 2009 2010 2011 2012 2013
within the report witnessed prime rents increase over the year, GLOBAL AMERICAS ASIA PACIFIC EMEA
albeit marginally in most cases.
AMERICAS: A MIXED BAG EUROPE: FROM MARKET TO MARKET
Coming out of the double-digit expansion seen in 2012, prime In Europe, a lack of high quality space characterised a number of
rental growth in the Americas region was much more subdued, markets, including London and Frankfurt, and with demand in
with an overall regional rise of just 1%. Rental performance in these cities advancing over the year, prime rents were put under
South America in 2013 was slow, with muted growth in the key upward pressure. Therefore, although the overall regional picture
markets of Argentina and Brazil. Ongoing economic uncertainty in was relatively muted over the year, there were notable differences
both of these markets caused occupier demand to ease and prime from market to market. Looking ahead, the rental trend seen in
rents to fall over the year. Although both Ecuador and Colombia 2013 will continue in to next year, with rents in the large majority
saw burgeoning demand over the year, it was not enough to offset expected to see modest growth, with locations such as London
the rental declines in these larger markets. In the year ahead, and Dublin experiencing more significant rental growth for good
South America is likely to face more uncertainty, with economic quality space.
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. “Prime rents in London continued to move
In the USA, demand levels improved in 2013 as the economy up during 2013, bolstered by strong
recovered quicker than expected. Over the year, the USA saw occupier demand and a declining supply
strong leasing activity, with business confidence improving as the
of high-quality space.”
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.
3
2014
A Cushman & Wakefield Research Publication
MOST EXPENSIVE LOCATIONS BY COUNTRY (€/SQM/YEAR)
2014 2013 LOCATION OCCUPANCY COST PER SQ. M. PER YEAR RENT
RANK RANK ADDITIONAL COSTS
€0 €500 €1,000 €1,500 €2,000 €2,500
London, UK
1 1
West End €2,122
Hong Kong, Hong Kong
2 2 Central €1,432
Moscow, Russia
3 6 CBD €1,092
Beijing, China
4 7 CBD €1,027
Tokyo, Japan
5 5 CBD (5 Central Wards) €1,003
New York, USA
6 8 Midtown (Madison/5th Av.) €993
Rio de Janeiro, Brazil
7 3 Zona Sul €991
New Delhi, India
8 4 Connaught Place €959
Paris, France
9 10 CBD €895
Sydney, Australia
10 9 CBD €844
Singapore, Singapore
11 14 CBD €803
Luxembourg, Luxembourg City
12 13
CBD €777
Oslo, Norway
13 11
CBD €756
Dubai, UAE
14 21
DIFC €734
Geneva, Switzerland
15 12
CBD €718
Almaty, Kazakhstan
16 15
CBD €661
Doha, Qatar
17 n/a
CBD €659
Stockholm, Sweden
18 16
CBD €593
Istanbul, Turkey
19 17
CBD (Levent) €572
Milan, Italy
20 18 Centre €556
Munich, Germany
21 19 CBD €540
Taipei, Taiwan
22 25
CBD (Xinyi Planned Area) €536
Amsterdam, Netherlands
23 22
Zuidas €506
Beirut, Lebanon
24 24
CBD €505
Dublin, Ireland
25 31
CBD (2/4 Districts) €485
Jakarta, Indonesia
26 26
CBD €469
Tel Aviv, Israel
27 27
CBD €457
Vancouver, Canada
28 29
CBD €442
Ho Chi Minh City, Vietnam
29 23
CBD €441
Madrid, Spain
30 30
CBD €439
Seoul, South Korea
31 34
CBD €434
Helsinki, Finland
32 32 CBD €432
Tbilisi, Georgia
33 n/a CBD €427
Caracas, Venezuela
34 28 CBD €427
4OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
MOST EXPENSIVE LOCATIONS BY COUNTRY
2014 2013 LOCATION OCCUPANCY COST PER SQ. M. PER YEAR RENT
RANK RANK ADDITIONAL COSTS
€0 €500 €1,000 €1,500 €2,000 €2,500
Bogotá, Colombia
35 20
Nogal €426
Auckland, New Zealand
36 36 CBD €406
Warsaw, Poland
37 33 CBD €395
Brussels, Belgium
38 35 Quartier Leopold €393
Kyiv, Ukraine
39 37 CBD €373
Athens, Greece
40 39 Syntagma Square €358
Copenhagen, Denmark
41 44 Harbour Area €345
Kuala Lumpur, Malaysia
42 38 CBD €343
Budapest, Hungary
43 40 CBD €343
Vienna, Austria
44 43 Central €342
Bucharest, Romania
45 42 CBD €339
Buenos Aires, Argentina
46 47
Catalinas €331
Prague, Czech Republic
47 41
CBD €318
Mexico City, Mexico
48 45
CBD €306
Lisbon, Portugal
49 48
Av. de Liberdade €298
Santiago, Chile
50 46
Las Condes €289
Bangkok, Thailand
51 52
CBD €258
Bratislava, Slovakia
52 50
CBD €257
Belgrade, Serbia
53 57
CBD €242
Vilnius, Lithuania
54 54 CBD €238
Manila, Philippines
55 49 Makati €235
Lima, Peru
56 55
CBD €234
Manama, Bahrain
57 51
Financial Harbour €231
Riga, Latvia
58 60
CBD €227
Ljubljana, Slovenia
59 53
CBD €227
Sofia, Bulgaria
60 61
CBD €223
Skopje, FYRO Macedonia
61 n/a
CBD €222
Tallinn, Estonia
62 58
CBD €221
Zagreb, Croatia
63 56
CBD €207
Quito, Ecuador
64 62
CBD €179
Amman, Jordan
65 59
CBD €179
Limassol, Cyprus
66 n/a CBD €179
Sandton, South Africa
67 63 CBD €150
52014
A Cushman & Wakefield Research Publication
AMERICAS 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.
Although rental performance across the Americas CITIES WITH LARGEST RENTAL GROWTH: AMERICAS
barely changed in 2013, there was a notable
75 30
polarisation in performances between North and
South America. Regional rental growth was fuelled 62.5 25
% Rental Growth per Year
Rent (USD/sq.ft/year)
by increases in both the USA and Mexico, where 50 20
prime rents moved up by 4% and 6%, respectively. 37.5 15
Most South American locations, however, saw 25 10
prime rents decline in 2013, with Colombia, and 12.5 5
2013’s frontrunner – Brazil, experiencing the
0 0
largest year-over-year declines. Consequently, this Quito New York Bogota
CBD Downtown Nogai
Boston Mexico City San
Back Bay CBD Francisco
Lima
CBD
Seattle
Financial
Brasilia Los Angeles
CBD West
NOMA District
divergence between the two regions gave way for Financial
District
RENT RENTAL GROWTH
New York City (Madison/5th Avenue) to retake
the title of the most expensive market in the In Mexico the market was healthy over the year as both supply and
Americas region, pushing last year’s number one, demand remained largely consistent, and this steady demand for
high-quality space helped to push support a 5% rise in rental rates
Rio de Janeiro (Zona Sul), into second place. in Mexico City. Canada as a whole was slightly more subdued than
its other North American markets, with rents holding up in the
MOST EXPENSIVE LOCATIONS: AMERICAS majority of the key cities in 2013.
150
BRAZIL EASES BACK
Total Occupancy Cost (USD/sq.ft/year)
120
The Brazilian economy, the principal driver within South America,
90
was weaker than anticipated in 2013, which had a subsequent
dampening on both business confidence and occupier demand.
60 Furthermore, cities such as Bogotá and Buenos Aires saw supply
outstrip demand over the year, resulting in prime rents easing in 2013.
30
In Rio de Janeiro (Zona Sul) prime rents fell by 7% over the year as
0 occupiers continued to be cautious from the continued economic
New York Rio de Sao Paulo Washington Boston San Francisco New York Miami Brasilia Los Angeles
Midtown Janeiro
Zona Sul
Faria Lima East End Back Bay NOMA Downtown
Financial
Brickell
Avenue
CBD West uncertainty, as well as the impending election in the latter half of
District
2014. However, the anticipation of the forthcoming World Cup
NORTH AMERICA SOUTH AMERICA
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.
6OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
MOST EXPENSIVE LOCATIONS: ASIA PACIFIC
“Half of the surveyed countries in the 195
Americas region witnessed prime rents
Total Occupancy Cost (USD/sq.ft/year)
162.5
rise in 2013.”
130
THE YEAR AHEAD 97.5
Looking ahead into 2014, with the foundation for stronger 65
conditions in 2014 set in place, it is anticipated that the USA will
32.5
continue to propel the region in terms of a buoyant economic
growth. This should in turn have a positive effect on occupier 0
Hong Kong Beijing Tokyo New Delhi Shanghai Sydney Singapore Mumbai Brisbane Shenzhen
demand and consequently help retain the upwards pressure on Central Central CBD
(5 Central
Connaught
Place
Lujiazui
(Pudong)
CBD CBD Bandra Kurla Centre
Complex
Futian
Wards)
prime rents. In South America, the burgeoning markets of
NORTH ASIA & INDIA SOUTH ASIA & PACIFIC
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 HONG KONG KEEPS ITS REGIONAL CROWN
an upcoming election becoming possible obstacles to future Hong Kong was the second most expensive market globally and
growth. As a result, business confidence and occupier demand was also the most expensive location in Asia Pacific, followed by
are both expected to suffer from this and remain subdued, which Beijing and Tokyo in second and third for the region, respectively.
could see further falls in prime rents over the course of the year. 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
ASIA PACIFIC 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 throughout Asia Pacific in 2013 Rental performance across India has been mixed, with the major
largely followed the subdued pattern seen in 2012, markets remaining stable whilst others witnessed minor corrections.
with prime rents moving up by 2%. Despite easing in New Delhi’s CBD (Connaught Place) has remained the most
expensive location across the country in 2013 due to its strong
the first half of the year, the economic climate
rental levels holding firm. With the domestic economy regaining
across the region improved as the year progressed, some momentum towards the end of the year, occupier demand
with China and Japan expanding. However, these moved up significantly in the final quarter of the year, helping to
positive performances were not enough to sustain push prime rents upwards in select cities that have low vacancies.
regional growth, and consequently, many occupiers
were notably cautious over the majority of the year.
72014
A Cushman & Wakefield Research Publication
The prime office market in Tokyo saw rental declines earlier in WHAT’S IN STORE
2013; however, levels quickly bounced back to previous figures as
A slow performance has become the new norm for Asia Pacific;
the economy saw conditions gradually regain momentum.
however, with regional GDP growth still hovering around 5.0-5.5%,
Business confidence increased over the year, and consequently
Asia Pacific is still ahead of the other regions as seen in 2013.
many occupiers have become less cautious. With demand picking
For 2014, a similar trajectory is anticipated, with slow but steady
up, prime space in some building is becoming scarce, and therefore
conditions akin to the previous year supporting occupier demand
a rise in prime rents may occur over the next year.
across the region. The key economies of China, Japan and markets
in Southeast Asia are anticipated to drive the region forward, with
BURGEONING MARKETS office market demand in particular gaining momentum over the year.
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
EMEA
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.
CITIES WITH LARGEST RENTAL GROWTH: ASIA PACIFIC
120 25
100
20
% Rental Growth per Year
Rent (USD/sq.ft/year)
80
15
60
10
40
After five years of financial and economic
5
20
uncertainty within Europe, the region finally began
0
Jakarta Bangkok Singapore Manila Taipei Shenzhen Seoul Shanghai Auckland Kolkata
0 to see some stability return to the market as 2013
CBD CBD CBD Makati CBD
(Xinyi
Planned Area)
Futian CBD Lujiazui
(Pudong)
CBD CBD
progressed, albeit with notable differences between
RENT RENTAL GROWTH markets. However, this improvement in economic
conditions arrived too late to drive much growth
The most notable rental growth over the year was seen in both in prime offices rents, with an overall regional
Indonesia and Thailand, where prime rents rose by 20% in both uplift of just 3%. Nevertheless, this is the highest
Jakarta and Bangkok, respectively. In Indonesia, the improving
domestic economy in 2013 translated into sturdy occupier
regional rise seen since 2008, before the depths
demand and thus expanding take-up levels in Jakarta. In Thailand, of the economic downturn.
limited supply and steady demand characterised the market in
Bangkok and subsequently resulted in prime rents increasing over LONDON LEADS THE WAY...
the year. However, the 2014 outlook for Thailand is more volatile
Although the overall regional rental growth was minimal, EMEA
due to the ongoing political uncertainty in the country. If political
still managed to possess the most expensive office market in the
indecision is prolonged, some occupiers will take longer to
world for 2013, as London (West End) retained its title for the
conclude transactions or may start to look at alternative locations.
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.
8OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
Key European cities such as London and Frankfurt saw prime rents
CITIES WITH LARGEST RENTAL GROWTH: EMEA
appreciate in 2013, and this helped Western Europe outperform
Central and Eastern Europe (CEE) for the first time since 2010. 700 50
Rents in CEE moved up by just 0.2% in 2013 whereas Western 600
Europe moved ahead by just over 2%. Furthermore, Dublin has 40
% Rental Growth per Year
Rent (EUR/sq.m/Year)
500
rebounded strongly in 2013, and a combination of solid demand
30
against a shortage of prime space has seen rents move up 400
significantly, most notably in the IFS Centre submarket, where an 300
20
annual rise of 19% was the highest in Europe. 200
10
100
...BUT GROWTH SURGES IN MIDDLE EAST & AFRICA 0 0
The most significant rental expansion within the EMEA region was Sandton
CBD
Durban
CBD
Durban Dublin
La Lucia Int’l Fin.
Cape
Town
/Berea Svcs. Centre CBD
Riga
CBD
Dublin Johannesburg Cape Luxembourg
2/4 Districts CBD Town
Bellville
CBD
seen in the Middle East and Africa which witnessed rents increase
COST RENTAL GROWTH
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. GOING FORWARD
However, it was South Africa that experienced the highest rental
Looking ahead for the region, the overall lack of high quality space
growth in the EMEA region in 2013, with prime rents accelerating
is expected to push many occupiers towards moving sooner
by almost 30%. The South African market saw a notable increase
rather than later, as they look to secure deals on the limited supply
in the amount of large transactions over the year in the midst of a
of quality space that is available. With the development pipeline
particularly active occupational market.
anticipated to continue at low levels until the latter part of 2014,
prime rents are likely to remain under pressure. Overall it will still
MOST EXPENSIVE LOCATIONS: EMEA be a mixed picture across Europe on a market-by-market basis in
terms of rental performance, but growth across the region is
2,500
expected to be slow but steady as confidence gradually returns.
Total Occupancy Cost (EUR/sq.ft.year)
2,000
ANNUAL SUB-REGIONAL RENTAL GROWTH
1,500
1,000
500
0
London
West End
London
City
Moscow
CBD
Paris
CBD
WESTERN EUROPE
Luxembourg
CBD
Oslo
CBD
Dubai
DIFC
CEE
Geneva
CBD
Almaty
CBD
MEA
Doha
CBD
1% 13%
Europe Middle East & Africa
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.
92014
A Cushman & Wakefield Research Publication
COUNTRY SUMMARIES
COUNTRY CITY MEASURING RENT QUOTED IN RENT ANNUAL NET INTERNAL AREA RENTAL
STANDARD RENTAL TREND
GROWTH RENT USD/ RENT EUR/ 2014
(%) SQ.FT/YR SQ.M/YR NIA
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 GIA USD/sq.ft/year 100.07 -1 127.09 992.72
(Madison/5th Avenue)
United States Philadelphia, West of Broad GIA USD/sq.ft/year 27.30 1 31.94 249.50
United States San Francisco, GIA USD/sq.ft/year 58.50 5 70.20 548.35
NOMA Financial District
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
10OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
COUNTRY SUMMARIES
COUNTRY CITY MEASURING RENT QUOTED IN RENT ANNUAL NET INTERNAL AREA RENTAL
STANDARD RENTAL TREND
GROWTH RENT USD/ RENT EUR/ 2014
(%) SQ.FT/YR SQ.M/YR NIA
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 NIA CNY/sq.m/mth 245.23 -10 45.16 352.76
New City
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 GEA INR/sq.ft/mth 285.12 0 82.42 643.81
Complex
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 GEA INR/sq.ft/mth 41.19 2 9.99 78.03
(Madhapur, Gachibowli)
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 NIA JPY/tsubo/mth 40,000.00 0 128.34 1,002.56
(5 Central Wards)
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 GEA TWD/ping/mth 5,698.00 10 64.47 503.65
(Xinyi Planned Area)
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
112014
A Cushman & Wakefield Research Publication
COUNTRY SUMMARIES
COUNTRY CITY MEASURING RENT QUOTED IN RENT ANNUAL NET INTERNAL AREA RENTAL
STANDARD RENTAL TREND
GROWTH RENT USD/ RENT EUR/ 2014
(%) SQ.FT/YR SQ.M/YR NIA
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
12OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
COUNTRY SUMMARIES
COUNTRY CITY MEASURING RENT QUOTED IN RENT ANNUAL NET INTERNAL AREA RENTAL
STANDARD RENTAL TREND
GROWTH RENT USD/ RENT EUR/ 2014
(%) SQ.FT/YR SQ.M/YR NIA
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 GEA USD/sq.m/year 528.00 0 60.83 475.12
(Levent)
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
132014
A Cushman & Wakefield Research Publication
TECHNICAL SPECIFICATION
EXCHANGE RATES
COUNTRY LOCAL CURRENCY US DOLLAR EURO COUNTRY LOCAL CURRENCY US DOLLAR EURO
Australia Dollar (AUD) 0.8946 0.6493 New Zealand Dollar (NZD) 0.8230 0.5973
Bahrain Dinar (BHD) 2.6525 1.9249 Norway Kroner (NOK) 0.1648 0.1196
Brazil Real (BRL) 0.4239 0.3076 Philippines Peso (PHP) 0.0225 0.0164
Canada Dollar (CAD) 0.9412 0.6830 Singapore Dollar (SGD) 0.7920 0.5748
China Renminbi (CNY) 0.1652 0.1199 South Korea Won (KRW) 0.0009 0.0007
Denmark Krone (DKK) 0.1847 0.1340 South Africa Rand (ZAR) 0.0955 0.0693
Eurozone Euro (EUR) 1.3780 1.0000 Sweden Krona (SEK) 0.1557 0.1130
Hong Kong Dollar (HKD) 0.1290 0.0936 Switzerland Franc (CHF) 1.1244 0.8160
India Rupee (INR) 0.0162 0.0117 Taiwan Dollar (TWD) 0.0336 0.0244
Indonesia Rupiah (IDR) 0.0000822 0.0000595 Thailand Baht (THB) 0.0304 0.0221
Israel Shekel (ILS) 0.2881 0.2091 United Arab Emirates Dirham (AED) 0.2723 0.1976
Japan Yen (JPY) 0.0095 0.0069 United Kingdom Pound (GBP) 1.6562 1.2019
Malaysia Ringgit (MYR) 0.3053 0.2216 United States Dollar (USD) 1.0000 0.7257
Source: Financial Times, 31st December 2013. All currencies to four decimal places unless stated.
DEFINITIONS REPORT INFORMATION
For each location a standard definition of a prime unit is This report was written by Barrie David and Erin Can of the
employed to endeavor to make the results as comparable as European Research Group, London. Further information
possible given varying local practices. Rents are often quoted and copies of this report are available from Erin Can of the
on different measurements bases, and for this reason we have European Research Group, London.
standardized the office rents used in this guide by adjusting the
rent to a net internal area basis. Some countries quote their Telephone: +44 207 152 5206
rents inclusive, and some exclusive, of service charges and Email: erin.can@eur.cushwake.com
property taxes. With this in mind, in order to make a more
detailed comparison across the regions the total occupancy Gain access to all of Cushman &Wakefield’s research and
costs were used. CBD office figures relate to new prime centre, publications globally by visiting our website. Covering global,
high specification units of a standard size commensurate with regional and local markets, our Research & Insight page
demand in each location. combines real business insight with emerging trends and
market data. Visit now to download business briefings and
The Net Internal Areas figures have been calculated by special reports, and open the doors to powerful insights aimed
standardizing the floorspace measurements on which the at improving your productivity, profitability and competitive
quoted rent is based. There are various efficiency rates that are position. For industry-lead intelligence to support your real
relevant to different countries, and we have used a standard for estate and business decisions, go to Cushman & Wakefield’s
each country (unless stated). Cushman & Wakefield Asia quote Research and Insight at www.cushmanwakefield.com/research
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.
14OFFICE SPACE
ACROSS THE WORLD
A Cushman & Wakefield Research Publication
CONTACTS
GLOBAL OFFICE CONTACTS
THE AMERICAS ASIA PACIFIC EMEA
James M. Underhill Richard Middleton James Young
CEO Executive Managing Director Head of EMEA Offices
The Americas Corporate Occupier & Investor Services Tel: +44 207 152 5113
Tel: +1 202 471 3600 Asia Pacific Email: james.young@eur.cushwake.com
Email: jim.underhill@cushwake.com Tel: +85 2 2956 7075
Email: richard.middleton@ap.cushwake.com
GLOBAL RESEARCH CONTACTS
THE AMERICAS ASIA PACIFIC EMEA
Maria T. Sicola Sigrid Zialcita Barrie David
Executive Managing Director Managing Director Senior Research Consultant
Americas Research Asia Pacific Research EMEA Research
Tel: +1 415 773 3542 Tel: +65 6232 0875 Tel: +44 207 152 5937
Email: maria.sicola@cushwake.com Email: sigrid.zialcita@ap.cushwake.com Email: barrie.david@eur.cushwake.com
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 GREECE Proprius SA NEW ZEALAND Bayleys Realty Group Ltd.
BAHRAIN Cluttons LLP IRELAND Lisney LLP NORWAY Eiendomshuset Malling & Co.
BULGARIA Forton ISRAEL Inter Israel Real Estate Consultants QATAR Cluttons LLP
CHANNEL ISLANDS Buckley & Company Ltd. JORDAN Michael Dunn & Co S.A.L ROMANIA Activ Property Services
DENMARK RED – Property Advisers KAZAKHSTAN Veritas Brown SLOVENIA S-Invest d.o.o.
ESTONIA Ober-Haus Real Estate Advisers LATVIA Ober-Haus Real Estate Advisers SOUTH AFRICA ProAfrica Property Services
FINLAND Tuloskiinteistot Oy LEBANON Michael Dunn & Co S.A.L SWITZERLAND SPG Intercity
FYRO MACEDONIA Forton LITHUANIA Ober-Haus Real Estate Advisers THAILAND Nexus Property Consultants Ltd.
GEORGIA Veritas Brown MALAYSIA YY Property Solutions UNITED ARAB EMIRATES Cluttons LLP
15Cushman & Wakefield (C&W) is known the world-over as an industry Published by Corporate Communications. knowledge leader. Through the delivery of timely, accurate, high-quality ©2014 Cushman & Wakefield. All rights reserved. research reports on the leading trends, markets around the world and business issues of the day, we aim to assist our clients in making property Cushman & Wakefield, LLP decisions that meet their objectives and enhance their competitive position. 43-45 Portman Square In addition to producing regular reports such as global rankings and local London W1A 3BG quarterly updates available on a regular basis, C&W also provides customized studies to meet specific information needs of owners, www.cushmanandwakefield.com occupiers and investors. Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and management assignments. Founded in 1917, it has approximately 250 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has nearly $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets or developments contained in this material. The information on which this report is based has been obtained from sources we believe to be reliable, but we have not independently verified such information and we do not guarantee that the information is accurate or complete. 16
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