London World’s Priciest Office Market In 2021
GLOBAL – London was named as the most expensive office market in the world, while Manhattan was ranked as the priciest office market in the United States, reported GlobeSt on Friday evening (5 August, SGT).
According to a Point2 survey that cross-referenced data from top real estate consultancies – CBRE, Jones Lang LaSalle (JLL), Cushman & Wakefield (C&W), and CommercialEdge – premium office space in London and Manhattan reached US$163 psf and US$91 psf per annum in 2021 respectively.
In the United States, Manhattan was followed by the San Francisco Bay Area after rents in South of Market (SoMa) and Menlo Park reached US$89 psf in 2021.
“Despite the highly publicized “flight from Silicon Valley” that we’ve been seeing for the past couple of years, the Bay Area is still a powerhouse of premium office space,” noted analysts from Point2.
“In fact, California offices in Palo Alto, Mountain View and Sunnyvale ranked 9th in the world for the most expensive, coming in at nearly US$86 psf per year, which was on the same playing field as Singapore.”
The world’s most expensive office markets in the Point2 survey were London, Tokyo, Beijing, Hong Kong, Paris, Manhattan, San Francisco, Singapore, the Bay Area, and Toronto.
Meanwhile, data from Colliers showed that office rental activity in Manhattan has recovered significantly so far this year. In fact, monthly leasing volume reached 3.16 million sq ft – the strongest monthly leasing figure since 20 January 2022 and represents a surge of about 42.8 percent compared to June 2022’s data.