London — November 21, 2007 — London’s West End, Mumbai, the City of London and Moscow are the top four most expensive office markets in the world, according to CB Richard Ellis Research’s semi-annual Global Market Rents survey. The report tracks the world’s most expensive markets as well as markets with the fastest growing rents over the past 12 months.

The ten most expensive markets have not altered in the last six months, although their order within the top-ten list has.  Mumbai’s Nariman Point, at EUR 119 (occupation cost in EUR/sq m/month used throughout this release), rose three places to second. At EUR 113.86 Moscow joined the top five, jumping two spots to fourth overall. Tokyo’s Inner Central Five Wards and Outer Central Five Wards fell to fifth and sixth, respectively. Midtown Manhattan is the priciest market in North America, at EUR 63.48, and ranks #12 worldwide. Of the 171 office markets monitored, 85% saw rents rise in the 12 months ended September 30, 2007.  Singapore led the list of markets with the fastest growing office rents, with occupancy costs increasing 83% during the past year.

At EUR 207.14 per sq m per month, London’s West End was once again the world’s most expensive office market.  Occupation costs in this market are 82% higher than the City of London, where occupation costs rose to EUR 113.86, placing it third in the rankings. 

Four European markets, Moscow, Oslo, Warsaw and London’s West End were also among the cities with the fastest growing rents.  Moscow showed the fastest growth in Europe with a 65% increase, followed by Oslo with 49% annual growth and Warsaw with 47% increase.  In fact, growth has been widespread across Europe over the past year, driven by strong demand and a lack of Grade A space in prime locations in many markets including London and Paris. 

Nigel Wade, Managing Director at CB Richard Ellis Polska commented: 'Since the beginning of this year we have witnessed major increase in rent levels in City Centre of Warsaw, primarily due to reduced vacancy rates. Landlords’ contributions are less i.e. rent free periods, covering fit-out costs or taking over existing lease commitments. For Non Central locations there is continued stabilization of rents achieved, although we expect high delivery of new buildings going forward, which have an adverse affect.'

see the complete survey

Top 50 Most Expensive Office Markets as of November 2007
The figures given in this release refer to occupation cost. This represents rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market.

The Top 50 Markets with Fastest Growing Rents as of November 2007
(ranked by 12-month % change increases in local currency & measure)

Source: CBRE Research