Singapore Ranked 16th For World’s Costliest Premium Office Space

SINGAPORE – The city-state emerged as the 16th most expensive premium office space market in the world this year, according to the latest Global Premium Office Rent Tracker from Jones Lang LaSalle (JLL).

According to the real estate consultancy’s report, overall occupancy costs of leasing a high-end office space in Singapore reached US$110 psf per year on a net leasable area (NLA) basis.

By gateway cities, Singapore was ranked as the 7th costliest in the world. Meanwhile, New York and Hong Kong (both at US$261) were tied as the number one most expensive, followed by Beijing (US$196), London (US$191), and Tokyo (US$150).

JLL noted that established global cities with the highest capital, deepest talent pool and a plethora of companies have largely maintained top rents for premium office buildings.

“Despite the impact of the pandemic on the office market globally, rental performance in core central business districts has proved resilient relative to decentralized office locations over the past year. 2021 has seen the rental gap between core and decentralized submarkets widen in the key gateway cities – Hong Kong, New York, Beijing and Tokyo – as core business districts have continued to attract healthy interest from corporate occupiers.”

“Nevertheless, more cost-conscious occupiers which place a greater focus on affordability may find substantial discounts (of 40 percent to 60 percent relative to premium CBD space) in well-located business districts outside of the main CBD within such top-tier cities.”

Overall, Midtown in New York and Hong Kong’s Central were named as the most expensive premium office space market across the globe at US$261 psf per year on an NLA basis. They are followed by Beijing’s Finance Street (US$196), West End in London (US$191), and California’s Silicon Valley (US$174).

“Notably, New York Midtown’s premium office costs have increased since 2020 to tie for the distinction as the world’s most expensive office market, along with Hong Kong’s Central,” noted JLL, adding that cities in Asia Pacific dominated the top 20 most expensive office markets.

“In third and fourth place, respectively, are Beijing’s Finance Street and London’s West End, each of which have witnessed rental declines in local currency terms. Rounding off the Top 5 is Silicon Valley, where premium occupancy costs have risen over this year,” JLL added.