St James’s in London is the most expensive with office rents at US$194 per square foot per year, according to the report from Jones Lang LaSalle which ranks the top 12 leading cities in terms of premier office space.
All 12 of the office districts are within the world’s most internationally connected and easily accessible cities, which are home to the greatest number of top global corporate headquarters, the world’s top talent and the highest net worth individuals.
St James’s in London is where world leading hedge and sovereign wealth funds can be found as well as niche wealth and investment managers. ‘St James’s personifies the West End’s unparalleled accessibility, luxury amenities and proximity to clients,’ says the report.
In second place is central Hong Kong where office rents are US$164 per square foot per month. The report says the location benefits from first class hotels, luxury retail, excellent transport links and interconnecting walkways and is the location of choice for the city’s banking and finance community.
Finance Street, a Beijing submarket planned specifically for the highest tier financial institutions and major state owned enterprises, it has rents of US$137 per square foot and also attracts global investment banks and insurance companies.
Next is Rue du Rhône in Geneva, Switzerland’s prime location for private wealth management, banking and luxury retail brands with office rents of US$116 per square foot, followed by Menlo Park in Silicon Valley in the United States at US$111 per square foot. It is often referred to as the epicentre of the technology universe and home to many venture capitalists.
In sixth place is the Kremlin area in Moscow at US$107 per square foot. Office space here is popular with Russian and international finance and legal tenants. New construction is tightly restricted and that has boosted the value of office space in the area.
Just below this is Fifth Avenue in New York, one of the most expensive shopping streets in the world but also home to numerous hedge funds looking for top quality space in Midtown Manhattan where they will pay rental costs of US$104 per square foot.
Then comes Raffles Place and Marina Bay in Singapore at US$103 per square foot. This is the heart of Singapore’s financial district and is served by a world class subway system and is a vibrant environment for work, living and leisure.
The Champs Elysee in Paris comes in at US$99 per square foot and extends into what is known as the Golden Triangle which is the centre of Paris’s tourism and retailing as well as being an office hub for high value businesses including international law firms and banks. There are also corporate tenants seeking accessible, high quality buildings in close proximity to clients.
In tenth place is Marunouchi in Tokyo at US$98 per square foot which is a long established office precinct on the west side of Tokyo station. Typically the lower floors of buildings house luxury retail outlets and the upper floors are office space.
The core central business district of Zurich at Uraniastrasse and Paradeplatz comes in at US$91 per square foot and the report says it has excellent accessibility and amenities, with office space heavily dominated by the banking sector and private wealth management.
Finally in twelfth place is Lujiazui in Shanghai at US$87 per square foot. It has been transformed from empty grassland to a bustling financial district in just 20 years and is now Shanghai’s largest business district with 650 Chinese and international financial institutions. (source: economica.net)