London Office Space Is the Most Expensive to Lease

NEW YORK CITY-It’s expensive leasing space here and it’s not getting any cheaper, but prices are higher elsewhere according to “Business Space Across the World,” the annual report issued by Cushman & Wakefield. In 2000, the priciest office space was found in Tokyo; this year London takes top honors, with Tokyo, Hong Kong, San Francisco and Paris coming next. New York City placed seventh, up from 13th place last year.

Average total occupancy, which includes rent, property taxes and a service charge, runs to $135 per sf in London, twice that of the next most costly European city, Paris. This year, the City of Light moved up from sixth place to fifth. Western Europe has some of the lowest office vacancy rates on the planet, averaging 3.75%, with some, such as Munich, below 1%.

In Central and Eastern Europe, rents declined an average of 5.6% even though the economies of those regions rebounded last year. Moscow was the most expensive location in that part of the world with rents going for $46 per sf.