Global Industrial & Office Rents

Dublin and Tokyo are the next most expensive industrial locations, while the cheapest industrial space is in Shanghai, China where the occupational cost is €31.22 per sq m ($4.90 per sf) per annum. Occupational costs, including prime rents and other charges, rose on average by 5% across the world during the second half of 2003. North America experienced growth in occupation cost of 7%, in Europe they rose by an average of 2%, while costs in the Asia-Pacific region remained unchanged.

London's West End again tops the list of prime office locations at €1,353 per sq m ($162 per sf) per annum, followed by City of London and Tokyo. But Limburg in Belgium is the cheapest city for office space at €105 per sq m ($12.65 per sf) per annum. Occupational costs in prime office markets around the world have not seen the same inflation as the industrial markets. King Sturge calculates that office occupation costs rose by 2.5% in both North America and Asia-Pacific, but fell by nearly 1% on average in Europe, to give a global average of only 1% growth over the second half of 2003.

Angus McIntosh, Partner and Head of Research at King Sturge said: "Cities such as London, Frankfurt and New York continue to suffer from an over supply of sub-lease space. Tenants are taking advantage to negotiate cheaper rents."