- In spite of a marked slowdown in leasing activity, prime office occupancy costs increased in 74 of the 133 global markets tracked for this report. Occupancy costs declined in 37 office markets and held steady in 22.
- Global office occupancy costs increased 2.1% over the past year, led by the Americas with a 5.2% annual occupancy cost increase and Asia Pacific with a 2.6% annual increase. In the Americas growth in demand from technology companies drove double-digit increases in prime occupancy costs in San Francisco and Seattle.
- Asia Pacific markets have the highest office occupancy costs, with the region accounting for six of the top 10 most expensive markets. Despite year-over-year occupancy cost declines, Hong Kong (Central) remained the world’s most expensive office market.
- Tight market conditions, strong demand for high-quality space and constrained levels of new supply are the major factors driving big increases in occupancy costs in prime office markets across the globe.
Download the Prime Office Occupancy Report (December 2012)
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