Business Space Across The World
Occupiers of prime office space in London can expect to pay average total occupancy costs, including rent, property taxes and service charge, of €160 ($141) per sf a year. Tokyo retains its second place at €113 ($100) and Paris has moved into second place with €92 ($81). While both London and Tokyo have seen a decline in rents over the year, London has increased its lead over other cities.
The research looks at 45 countries, analysing the total costs of occupying office space in 100 locations.
H&B head of Euopean research David Hutchings said: '2001 started with a continuation of the robust activity of the previous year, but the second half of the year wasa different story.
'The decline in the telecoms and hi-tech sectors gave us early warning that the record levels of growth and activity seen in 2000 were not going to be bettered but, as the year progressed, conditions became markedly tougher.
'There are clearly going to be further areas of weakness in the months ahead but there are now some more hopeful signs. Old economy occupiers for example have been more active in some markets and a less competitive leasing market has reduced the threat of over-heating which was clearly present in a number of areas in early 2001.
'If the economy picks up steadily later this year as we expect, a return to balance should be evident in the global office market in 2003, with renewed ressure on rents following as corporate investment increases.'
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