A severe shortage of office space in London has sparked significant increases in rental prices in certain parts of the city, new figures from CBRE show.
In its latest industry report, the global property firm suggests that London’s West End, famous for its theatrical heritage, is now the most expensive place in the world for businesses to rent office premises.
According to the survey, average occupancy costs in the area have now reached £163 per square foot. This accounts for rent, service charges and business rates.
Philip Howells, executive director at CBRE, gave his reasons for the figures. He was quoted by managementtoday.co.uk as saying: “A shortage of space combined with rising demand has pushed rents higher in London’s West End.
“The market has accelerated significantly over the last 18 months, with leasing activity improving in the core West End market of Mayfair & St James’s in particular.”
Hong Kong has been pushed into second place in the table, and office space there now costs businesses an average of £142 per square foot. The Financial Street area of Beijing ranked third with a cost of £114 per square foot.
CBRE releases its office space market report every six months. The company’s researchers track activity in 126 markets across the world, businesswire.com reports.
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