London’s West End has the world’s second most expensive office space

DTZ’s Global Occupancy report predicts annual costs of £15,854 per desk by 2015

Article posted: 07 Mar 2011

Average occupancy costs in Europe will grow 2% year-on-year to 2015, according to the fourteenth edition of DTZ’s annual ‘Global Occupancy Costs: Offices’ survey, published last week.

DTZ’s survey assesses the main components of occupancy costs in 121 business districts in 47 countries/territories across the globe, ranking each location based on annual costs per workstation in USD. It includes rents and outgoings, such as maintenance costs and property tax.

Office space in the West End of London will be the fastest growing market in Europe over the next five years. Recovering demand, combined with supply constraints following reduced development activity, will continue pushing up rents. Occupancy costs are forecast to increase by 5.1% (£3,508) per annum, to reach £15,854 per workstation by 2015. This growth will see offices in the West End retain their position as the second most expensive office location in the world, behind Hong Kong.

According to DTZ’s report, London’s West End entered 2011 as the most expensive office location in Europe, and the second most expensive location globally behind Hong Kong. Geneva is third in the global ranking and Zurich is fifth, behind Tokyo.

The report stated that office space in the City of London ranks 8^th place in the world, with the current cost of a city desk now averaging £9,410 per annum.

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Posted by Aree