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Growing occupancy costs
Date published 1 February 2009
Broll Property's global research partner, CB Richard Ellis (CBRE) has done a survey in which it tracks the world markets with the highest, as well as the fastest-growing occupancy costs for the 12 months ended September 30, 2008.
London's West End and Moscow remain the world's most expensive office markets respectively, while Hong Kong's CBD, Tokyo's inner central district and Mumbai's Nariman Point round up the rest of the top five, according to the report. The five cities with the fastest - growing occupancy costs are Abu Dhabi; Ho Chi Minh City in Vietnam; another UAE capital, Dubai; Australia's Perth and Tel Aviv in Israel.
Interesting to note is that Durban, Cape Town (Claremont) and Sandton all fell in the top 20 fastest occupancy costs growth. Durban comes in at number six, while Cape Town is ninth on the list and Sandton fourteenth. The average rate of growth for office occupancy costs among the 172 markets monitored in the survey was 8% - almost double last year's world inflation rate.
Up 94.6%, Abu Dhabi had by far the fastest-growing occupancy costs. "Our current perceptions are greatly affected by the current economic malaise and we tend to forget how fast rents and occupancy costs were rising over the last 12 months," says Dr Raymond Torto, CBRE global chief economist.
Author: Journal of Facilities Management
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