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Costs of Local Office Leases Still Rank in Top 10

SAN FRANCISCO-Despite the recent dot-com bomb in the San Francisco and Silicon Valley markets, the cities manage to remain two of the world's most expensive cities in which to lease office space.

By Michelle Savage | Updated on August 17, 2001

SAN FRANCISCO-San Francisco and Silicon Valley, despite recent drops in average occupancy costs, are the eighth and ninth most expensive office markets in the world, according to the latest update of CB Richard Ellis’ Global Market Rents.

The semi-annual survey of occupancy costs for class A office space covers 155 metro areas around the globe. It shows that the total occupancy costs in US dollar terms have declined in 81 of these areas.

Silicon Valley was no exception. In January of this year, it was listed as the sixth most expensive market with a total average occupancy cost of almost $90 per sf. In the last sixth months, it proved to be the hardest hit market in North America with total occupancy costs dropping to $68.90 per sf per annum. CB Richard Ellis experts expect rents in this market to continue spiraling downward through the end of the year.

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