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Singapore ranks 11th in JLL’s list of most expensive office rental markets in the world, as new supply resulted in more competitive rental prices and comparatively lower occupancy costs.
“We are in a new era of city competition, where cities are fighting to secure the world’s most dynamic corporations, attract the best talent and pull in capital,” said Megan Walters, JLL’s Head of capital markets research for Asia Pacific.
Meanwhile, Hong Kong registered the highest office rental cost of US$262 per sq ft in JLL’s Global Premium Office Rent Tracker. This is followed by London with US$240 per sq ft and Beijing at US$199 per sq ft.
At fourth place is New York with office rental cost of US$171 per sq ft, trailed by Shanghai at $136 per sq ft. Completing the top ten are Tokyo, San Francisco, Moscow, Delhi and Dubai.
“Our research reveals that three of the top five cities with the costliest office rents are in Asia and half of the top 10 are Asian cities,” noted Chris Archibold, head of markets at JLL Singapore.
“A large part of the global growth is now driven out of Asia and international businesses will continue to be keen to set up their presence in the region; some of these markets have a shortage of supply driving rents northwards. In order to remain competitive from a real estate perspective, these cities will need to ensure a supply of appropriately priced, flexible commercial space,” he added.
In the report’s first edition, JLL tracked office occupation costs in 24 cities, taking into account net effective rent, service charges and property tax.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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