OFFICE SPACE ACROSS THE WORLD. A Cushman & Wakefield Research Publication

Transcription

1 OFFICE SPACE ACROSS THE WORLD 214

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3 OFFICE SPACE ACROSS THE WORLD INTRODUCTION Welcome to the Cushman & Wakefield global Office Space Across the World publication for 214. This report was prepared by the Cushman & Wakefield Research team to provide an analysis of the global office market during 213, as well as discuss the industry s main trends for the year ahead. The primary focus of this report is prime office rental performances and occupancy costs across the globe, including a ranking of the most expensive locations across the world in which to occupy office space. The report also provides a more in-depth rental and occupier overview for each region, concluding with a detailed list of market data pertaining to each office location. CONTENTS Global Summary & Outlook 2 Most Expensive Locations 4 Americas Overview 6 The information and data provided in this report are based on a comprehensive survey of Cushman & Wakefield s international offices, and the editors are extremely grateful to them for their time, effort and assistance. The Cushman & Wakefield Research Group provides a strategic advisory and supporting role to our clients. Consultancy projects are undertaken on a local and international basis, providing in-depth advice and analysis, detailed market appraisals and location and investment strategies. For more information on what Research can do for you, please visit the Contacts page of this report (page 15). To gain access to all of Cushman & Wakefield s research and publications globally, please visit the Research & Insight section of our global website: Asia Pacific Overview 7 EMEA Overview 8 Market Metrics 1 Technical Specifications 14 Contacts 15 1

4 214 GLOBAL SUMMARY AND OUTLOOK Global office rents moved up by 3% in 213, which is the third consecutive year of a similar rental performance. While all three regions overall witnessed a relatively slow pace of rental growth over the year, certain areas such as Africa and the Middle East saw a more buoyant rental market, with prime rents up by as much as 1% in certain locations. RENTAL PERFORMANCE IN THE YEAR TO DEC % 25% 28% THE MOST EXPENSIVE GLOBAL MARKETS The most expensive office market globally was London (West End), which retained its position ahead of Hong Kong in second place. Prime rents in London continued to move up during 213, bolstered by strong occupier demand and a declining supply of high-quality space. With rents largely unchanged in Hong Kong over the year, the gap in total occupancy costs between London and Hong Kong has, in fact, widened. New Delhi s Connaught Place fell from fourth position to eighth despite prime rents being unchanged in 213. This was primarily the result of an appreciation in both the US Dollar and Euro against the Indian Rupee in 213, causing a shift in New Delhi s position in terms of global occupancy costs. Similarly, exchange rate fluctuations with the Japanese Yen caused Tokyo to fall behind other comparable markets like Beijing in the overall ranking despite prime rents in both cities remaining largely unchanged over the year. % of countries showing rental growth % of countries showing stable rents % of countries showing rental declines Average Rental Change 3% 2

5 OFFICE SPACE ACROSS THE WORLD CITIES WITH THE LARGEST RENTAL GROWTH Rent (EUR/sq.m/year) Sandton Durban Durban La Lucia/ Berea Quito Jakarta Bangkok Singapore Dublin Cape Town Int l Fin. Svcs. Centre New York Downtown % Rental Growth per Year ASIA PACIFIC: SLOW BUT STEADY Rental growth was largely flat across Asia Pacific over the year, with an overall regional rental rise of just 2% in 213. Economic conditions were more fragile in the first half of the year, although growth in core markets of China and Japan advanced as the year progressed. However, the region is well represented in terms of the most expensive office locations on a global scale. Hong Kong retained its position in second place overall, Beijing came in fourth position and Tokyo in fifth. Asia Pacific s performance in 214 is anticipated to be similar to that seen in 213, with slow and stable demand anticipated to keep rental levels largely unchanged, albeit with incentives becoming more competitive. RENT RENTAL GROWTH RENTAL PERFORMANCE IN THE 5 YEARS TO DEC 213 OCCUPIER TRENDS The global occupier market in 213 was again characterised by caution, as tenants across the globe remained concerned regarding occupancy costs. Indeed, while some tenants were looking to upgrade to more efficient, cost-effective office space, many still sought to consolidate their existing operations. Over the year, occupiers retained a focus on well located, high quality space, and demand for this type of accommodation was steadily rising by the end of 213. As a result, the options open to occupiers tightened, and almost half of the locations analysed within the report witnessed prime rents increase over the year, albeit marginally in most cases. % Rental Change per Year GLOBAL AMERICAS ASIA PACIFIC EMEA AMERICAS: A MIXED BAG Coming out of the double-digit expansion seen in 212, prime rental growth in the Americas region was much more subdued, with an overall regional rise of just 1%. Rental performance in South America in 213 was slow, with muted growth in the key markets of Argentina and Brazil. Ongoing economic uncertainty in both of these markets caused occupier demand to ease and prime rents to fall over the year. Although both Ecuador and Colombia saw burgeoning demand over the year, it was not enough to offset the rental declines in these larger markets. In the year ahead, South America is likely to face more uncertainty, with economic concerns affecting business confidence in a number of locations, although a steady rise in stability across the region will be seen as North America expands. In the USA, demand levels improved in 213 as the economy recovered quicker than expected. Over the year, the USA saw strong leasing activity, with business confidence improving as the year progressed. However, rental performances were mixed across the country, with New York (Downtown) and Boston outperforming other markets. The outlook for 214 is for the USA to continue to see rental levels expand and thus drive the overall regional growth in the year ahead. EUROPE: FROM MARKET TO MARKET In Europe, a lack of high quality space characterised a number of markets, including London and Frankfurt, and with demand in these cities advancing over the year, prime rents were put under upward pressure. Therefore, although the overall regional picture was relatively muted over the year, there were notable differences from market to market. Looking ahead, the rental trend seen in 213 will continue in to next year, with rents in the large majority expected to see modest growth, with locations such as London and Dublin experiencing more significant rental growth for good quality space. Prime rents in London continued to move up during 213, bolstered by strong occupier demand and a declining supply of high-quality space. 3

6 214 MOST EXPENSIVE LOCATIONS BY COUNTRY ( /SQM/YEAR) RANK RANK LOCATION OCCUPANCY COST PER SQ. M. PER YEAR RENT ADDITIONAL COSTS 5 1, 1,5 2, 2, n/a n/a 28 London, UK West End Hong Kong, Hong Kong Central Moscow, Russia Beijing, China Tokyo, Japan (5 Central Wards) New York, USA Midtown (Madison/5th Av.) Rio de Janeiro, Brazil Zona Sul New Delhi, India Connaught Place Paris, France Sydney, Australia Singapore, Singapore Luxembourg, Luxembourg City Oslo, Norway Dubai, UAE DIFC Geneva, Switzerland Almaty, Kazakhstan Doha, Qatar Stockholm, Sweden Istanbul, Turkey (Levent) Milan, Italy Centre Munich, Germany Taipei, Taiwan (Xinyi Planned Area) Amsterdam, Netherlands Zuidas Beirut, Lebanon Dublin, Ireland (2/4 Districts) Jakarta, Indonesia Tel Aviv, Israel Vancouver, Canada Ho Chi Minh City, Vietnam Madrid, Spain Seoul, South Korea Helsinki, Finland Tbilisi, Georgia Caracas, Venezuela 2,122 1,432 1,92 1,27 1,

7 OFFICE SPACE ACROSS THE WORLD MOST EXPENSIVE LOCATIONS BY COUNTRY RANK RANK LOCATION OCCUPANCY COST PER SQ. M. PER YEAR RENT ADDITIONAL COSTS 5 1, 1,5 2, 2, n/a n/a 63 Bogotá, Colombia Nogal Auckland, New Zealand Warsaw, Poland Brussels, Belgium Quartier Leopold Kyiv, Ukraine Athens, Greece Syntagma Square Copenhagen, Denmark Harbour Area Kuala Lumpur, Malaysia Budapest, Hungary Vienna, Austria Central Bucharest, Romania Buenos Aires, Argentina Catalinas Prague, Czech Republic Mexico City, Mexico Lisbon, Portugal Av. de Liberdade Santiago, Chile Las Condes Bangkok, Thailand Bratislava, Slovakia Belgrade, Serbia Vilnius, Lithuania Manila, Philippines Makati Lima, Peru Manama, Bahrain Financial Harbour Riga, Latvia Ljubljana, Slovenia Sofia, Bulgaria Skopje, FYRO Macedonia Tallinn, Estonia Zagreb, Croatia Quito, Ecuador Amman, Jordan Limassol, Cyprus Sandton, South Africa

8 214 AMERICAS Although rental performance across the Americas barely changed in 213, there was a notable polarisation in performances between North and South America. Regional rental growth was fuelled by increases in both the USA and Mexico, where prime rents moved up by 4% and 6%, respectively. Most South American locations, however, saw prime rents decline in 213, with Colombia, and 213 s frontrunner Brazil, experiencing the largest year-over-year declines. Consequently, this divergence between the two regions gave way for New York City (Madison/5th Avenue) to retake the title of the most expensive market in the Americas region, pushing last year s number one, Rio de Janeiro (Zona Sul), into second place. MOST EXPENSIVE LOCATIONS: AMERICAS NORTH AMERICA HOLDING FIRM In 213, many office markets in the USA witnessed robust demand as the economy started to improve at a rate stronger than previously expected, although performances were not uniform across the entire country for example, New York and Boston both experienced double-digit rental growth over the year in certain key submarkets, far outperforming many of the other markets within the country. Boston s advancement was underpinned by strong activity particularly from the financial and professional services sector, which pushed down vacancy and, subsequently, saw rents accelerate by 16% in 213. In New York, steady interest from the technology, legal, advertising, media and health care sectors helped to sustain the submarkets. New completions and demand from these active industries helped to push prime rents up by 17% in the Downtown submarket over the year. CITIES WITH LARGEST RENTAL GROWTH: AMERICAS Rent (USD/sq.ft/year) Quito New York Downtown Bogota Nogai Boston Back Bay RENT Mexico City San Francisco NOMA Financial District In Mexico the market was healthy over the year as both supply and demand remained largely consistent, and this steady demand for high-quality space helped to push support a 5% rise in rental rates in Mexico City. Canada as a whole was slightly more subdued than its other North American markets, with rents holding up in the majority of the key cities in 213. Lima Seattle Financial District RENTAL GROWTH Brasilia Los Angeles West % Rental Growth per Year Total Occupancy Cost (USD/sq.ft/year) New York Midtown Rio de Janeiro Zona Sul Sao Paulo Faria Lima Washington East End Boston Back Bay NORTH AMERICA San Francisco New York NOMA Downtown Financial District Miami Brickell Avenue SOUTH AMERICA Brasilia Los Angeles West BRAZIL EASES BACK The Brazilian economy, the principal driver within South America, was weaker than anticipated in 213, which had a subsequent dampening on both business confidence and occupier demand. Furthermore, cities such as Bogotá and Buenos Aires saw supply outstrip demand over the year, resulting in prime rents easing in 213. In Rio de Janeiro (Zona Sul) prime rents fell by 7% over the year as occupiers continued to be cautious from the continued economic uncertainty, as well as the impending election in the latter half of 214. However, the anticipation of the forthcoming World Cup and Olympic games over the next few years has brought a surge of infrastructure developments to the city, many of which are already underway, and it is hoped that these improvements will boost Rio s attractiveness to international occupiers in the longer term. 6

9 OFFICE SPACE ACROSS THE WORLD Half of the surveyed countries in the Americas region witnessed prime rents rise in 213. THE YEAR AHEAD Looking ahead into 214, with the foundation for stronger conditions in 214 set in place, it is anticipated that the USA will continue to propel the region in terms of a buoyant economic growth. This should in turn have a positive effect on occupier demand and consequently help retain the upwards pressure on prime rents. In South America, the burgeoning markets of Colombia, Chile and Peru are anticipated to sustain any growth for the area. However, the outlook for Brazil one of the key markets for the region is uncertain, with factors such as high inflation and an upcoming election becoming possible obstacles to future growth. As a result, business confidence and occupier demand are both expected to suffer from this and remain subdued, which could see further falls in prime rents over the course of the year. ASIA PACIFIC MOST EXPENSIVE LOCATIONS: ASIA PACIFIC Total Occupancy Cost (USD/sq.ft/year) Hong Kong Central Beijing Central Tokyo (5 Central Wards) New Delhi Connaught Place Shanghai Lujiazui (Pudong) NORTH ASIA & INDIA HONG KONG KEEPS ITS REGIONAL CROWN Hong Kong was the second most expensive market globally and was also the most expensive location in Asia Pacific, followed by Beijing and Tokyo in second and third for the region, respectively. Occupier demand levels were muted in Hong Kong, with activity from larger occupiers in particular easing noticeably over the year. However, going forward, Hong Kong s position as one of the most important global financial centres is anticipated to help buoy demand levels into 214. Prime rents in Hong Kong are expected to remain largely stable with relatively few completions anticipated. Sydney Singapore Mumbai Bandra Kurla Complex Brisbane Centre SOUTH ASIA & PACIFIC Shenzhen Futian NORTH ASIA & INDIA: SLOWING RENTAL GROWTH Rental performance throughout Asia Pacific in 213 largely followed the subdued pattern seen in 212, with prime rents moving up by 2%. Despite easing in the first half of the year, the economic climate across the region improved as the year progressed, with China and Japan expanding. However, these positive performances were not enough to sustain regional growth, and consequently, many occupiers were notably cautious over the majority of the year. In Beijing, prime rents eased marginally over the year, albeit figures starting at a very high base in early 213. Indeed, the high rents within the have caused many occupiers to rationalise their space as a way to cut down on costs. As China s GDP growth remains steady, the continued development of the tertiary sector within Beijing has maintained momentum. However, at the current time there are concerns of future oversupply, leading many developers to review their development pipeline carefully. With occupier demand still relatively robust, prime rents are anticipated to be fairly flat in 214. Rental performance across India has been mixed, with the major markets remaining stable whilst others witnessed minor corrections. New Delhi s (Connaught Place) has remained the most expensive location across the country in 213 due to its strong rental levels holding firm. With the domestic economy regaining some momentum towards the end of the year, occupier demand moved up significantly in the final quarter of the year, helping to push prime rents upwards in select cities that have low vacancies. 7

10 214 The prime office market in Tokyo saw rental declines earlier in 213; however, levels quickly bounced back to previous figures as the economy saw conditions gradually regain momentum. Business confidence increased over the year, and consequently many occupiers have become less cautious. With demand picking up, prime space in some building is becoming scarce, and therefore a rise in prime rents may occur over the next year. BURGEONING MARKETS The Metro Manila office market was generally positive throughout 213, primarily driven by the continued development of the Business Process Outsourcing (BPO) sector. Rents continued to climb due to strong absorption figures, especially in the markets of Makati and Bonifacio Global City, while vacancy remained low despite the growth of office supply. Corporate occupiers continue to expand across major hubs, taking advantage of the talented pool and the lower wages of office workers in emerging cities. WHAT S IN STORE A slow performance has become the new norm for Asia Pacific; however, with regional GDP growth still hovering around %, Asia Pacific is still ahead of the other regions as seen in 213. For 214, a similar trajectory is anticipated, with slow but steady conditions akin to the previous year supporting occupier demand across the region. The key economies of China, Japan and markets in Southeast Asia are anticipated to drive the region forward, with office market demand in particular gaining momentum over the year. EMEA CITIES WITH LARGEST RENTAL GROWTH: ASIA PACIFIC Rent (USD/sq.ft/year) Jakarta Bangkok Singapore Manila Makati RENT Taipei (Xinyi Planned Area) Shenzhen Futian The most notable rental growth over the year was seen in both Indonesia and Thailand, where prime rents rose by 2% in both Jakarta and Bangkok, respectively. In Indonesia, the improving domestic economy in 213 translated into sturdy occupier demand and thus expanding take-up levels in Jakarta. In Thailand, limited supply and steady demand characterised the market in Bangkok and subsequently resulted in prime rents increasing over the year. However, the 214 outlook for Thailand is more volatile due to the ongoing political uncertainty in the country. If political indecision is prolonged, some occupiers will take longer to conclude transactions or may start to look at alternative locations. Seoul Shanghai Lujiazui (Pudong) RENTAL GROWTH Auckland Kolkata % Rental Growth per Year After five years of financial and economic uncertainty within Europe, the region finally began to see some stability return to the market as 213 progressed, albeit with notable differences between markets. However, this improvement in economic conditions arrived too late to drive much growth in prime offices rents, with an overall regional uplift of just 3%. Nevertheless, this is the highest regional rise seen since 28, before the depths of the economic downturn. LONDON LEADS THE WAY... Although the overall regional rental growth was minimal, EMEA still managed to possess the most expensive office market in the world for 213, as London (West End) retained its title for the second consecutive year. The West End submarket is characterised by strong demand amid a dwindling supply of modern space. Indeed, with leasing activity building momentum over the year, these conditions bolstered a 5% rise in prime office rents in 213. Rounding out the EMEA ranking, Moscow followed London (West End) in second place, with Paris in third. 8

11 OFFICE SPACE ACROSS THE WORLD Key European cities such as London and Frankfurt saw prime rents appreciate in 213, and this helped Western Europe outperform Central and Eastern Europe (CEE) for the first time since 21. Rents in CEE moved up by just.2% in 213 whereas Western Europe moved ahead by just over 2%. Furthermore, Dublin has rebounded strongly in 213, and a combination of solid demand against a shortage of prime space has seen rents move up significantly, most notably in the IFS Centre submarket, where an annual rise of 19% was the highest in Europe....BUT GROWTH SURGES IN MIDDLE EAST & AFRICA The most significant rental expansion within the EMEA region was seen in the Middle East and Africa which witnessed rents increase by 14%. Both Qatar and Dubai saw business confidence pick-up through the year, resulting in increased office market activity as well as supporting prime rental growth of 1% and 5%, respectively. However, it was South Africa that experienced the highest rental growth in the EMEA region in 213, with prime rents accelerating by almost 3%. The South African market saw a notable increase in the amount of large transactions over the year in the midst of a particularly active occupational market. MOST EXPENSIVE LOCATIONS: EMEA Total Occupancy Cost (EUR/sq.ft.year) 2,5 2, 1,5 1, 5 London West End London City Moscow Paris Luxembourg Oslo Dubai DIFC Geneva Almaty Doha CITIES WITH LARGEST RENTAL GROWTH: EMEA Rent (EUR/sq.m/Year) Sandton Durban Durban La Lucia /Berea GOING FORWARD Dublin Int l Fin. Svcs. Centre COST Cape Town Looking ahead for the region, the overall lack of high quality space is expected to push many occupiers towards moving sooner rather than later, as they look to secure deals on the limited supply of quality space that is available. With the development pipeline anticipated to continue at low levels until the latter part of 214, prime rents are likely to remain under pressure. Overall it will still be a mixed picture across Europe on a market-by-market basis in terms of rental performance, but growth across the region is expected to be slow but steady as confidence gradually returns. Riga Dublin Johannesburg 2/4 Districts RENTAL GROWTH Cape Town Bellville ANNUAL SUB-REGIONAL RENTAL GROWTH 1% Luxembourg 13% % Rental Growth per Year WESTERN EUROPE CEE MEA OCCUPIER TREND: COST CONCERNS While demand is strengthening in a number of European markets, occupiers have remained cost conscious over the year, and consequently space rationalisation and consolidations have continued to drive a large component of regional market activity. However, there has been a divergence between prime and secondary space, with occupiers showing an increasing preference for good quality space rather than secondary. As a result, it has primarily been those locations that are experiencing a shortage of prime space that have seen rents rise over the year. Europe Middle East & Africa 9

12 214 COUNTRY SUMMARIES COUNTRY CITY MEASURING STANDARD RENT QUOTED IN RENT ANNUAL RENTAL GROWTH (%) NET INTERNAL AREA RENT USD/ SQ.FT/YR RENT EUR/ SQ.M/YR NIA AMERICAS Argentina Buenos Aires, Puetro Madero NIA USD/sq.m/mth Argentina Buenos Aires, Catalinas NIA USD/sq.m/mth Brazil Sao Paulo, Faria Lima NIA BRL/sq.m/mth Brazil Rio de Janeiro, Zona Sul NIA BRL/sq.m/mth Brazil Brasilia, NIA BRL/sq.m/mth Canada Toronto, GIA CAD/sq.ft/year Canada Montreal, GIA CAD/sq.ft/year Canada Calgary, GIA CAD/sq.ft/year Canada Vancouver, GIA CAD/sq.ft/year Canada Ottawa, GIA CAD/sq.ft/year Colombia Bogota, Nogal NIA USD/sq.m/mth Colombia Bogota, Andino NIA USD/sq.m/mth Chile Santiago, Las Condes NIA USD/sq.m/mth Ecuador Quito, NIA USD/sq.m/mth Mexico Mexico City, NIA USD/sq.m/mth Peru Lima, NIA USD/sq.m/mth United States Atlanta, Midtown GIA USD/sq.ft/year United States Boston, Back Bay GIA USD/sq.ft/year United States Chicago, West Loop GIA USD/sq.ft/year United States Houston, GIA USD/sq.ft/year United States Los Angeles, West GIA USD/sq.ft/year United States Miami, Brickell Avenue GIA USD/sq.ft/year United States New York, Downtown GIA USD/sq.ft/year United States New York, Midtown (Madison/5th Avenue) GIA USD/sq.ft/year United States Philadelphia, West of Broad GIA USD/sq.ft/year United States San Francisco, GIA USD/sq.ft/year NOMA Financial District United States Seattle, Financial District GIA USD/sq.ft/year United States Washington, East End GIA USD/sq.ft/year Venezuela Caracas, GIA USD/sqm/month RENTAL TREND 214 1

13 OFFICE SPACE ACROSS THE WORLD COUNTRY SUMMARIES COUNTRY CITY MEASURING STANDARD RENT QUOTED IN RENT ANNUAL RENTAL GROWTH (%) RENT USD/ SQ.FT/YR RENT EUR/ SQ.M/YR NIA ASIA PACIFIC Australia Sydney, NIA AUD/sq.m/year 1, Australia Melbourne, NIA AUD/sq.m/year Australia Brisbane, Centre NIA AUD/sq.m/year China Beijing, NIA CNY/sq.m/mth China Shanghai, Lujiazui (Pudong) NIA CNY/sq.m/mth China Guangzhou, Pearl River New City NIA CNY/sq.m/mth China Chengdu, NIA CNY/sq.m/mth China Shenzhen, Futian NIA CNY/sq.m/mth Hong Kong Hong Kong, Central NIA HKD/sq.ft/mth , India Mumbai, Bandra Kurla Complex GEA INR/sq.ft/mth India Mumbai, GEA INR/sq.ft/mth India New Delhi, Connaught Place GEA INR/sq.ft/mth India Bengaluru, GEA INR/sq.ft/mth India Chennai, GEA INR/sq.ft/mth India Hyderabad, Suburban (Madhapur, Gachibowli) GEA INR/sq.ft/mth India Pune, GEA INR/sq.ft/mth India Kolkata, GEA INR/sq.ft/mth Indonesia Jakarta, GIA USD/sq.m/mth Japan Tokyo, (5 Central Wards) NIA JPY/tsubo/mth 4, ,2.56 South Korea Seoul, GIA KRW/sq.m/mth 32, South Korea Seoul, Gangnam GIA KRW/sq.m/mth 26, South Korea Seoul, Yeouido GIA KRW/sq.m/mth 21, Malaysia Kuala Lumpur, NIA MYR/sq.ft/mth New Zealand Auckland, NIA NZD/sq.m/mth Philippines Manila, Makati NIA PHP/sq.m/mth 1, Philippines Manila, Ortigas NIA PHP/sq.m/mth Singapore Singapore, NIA SGP/sq.ft/mth Taiwan Taipei, (Xinyi Planned Area) NET INTERNAL AREA GEA TWD/ping/mth 5, Thailand Bangkok, GIA THB/sq.m/mth Vietnam Ho Chi Minh City, NIA USD/sq.m/mth Vietnam Hanoi, NIA USD/sq.m/mth RENTAL TREND

14 214 COUNTRY SUMMARIES COUNTRY CITY MEASURING STANDARD RENT QUOTED IN RENT ANNUAL RENTAL GROWTH (%) NET INTERNAL AREA RENT USD/ SQ.FT/YR RENT EUR/ SQ.M/YR NIA EMEA Austria Vienna, Central NIA EUR/sq.m/mth Austria Innsbruck, NIA EUR/sq.m/mth Belgium Brussels, Quartier Leopold GEA EUR/sq.m/year Belgium Antwerp, Centre GEA EUR/sq.m/year Bulgaria Sofia, GEA EUR/sq.m/mth Croatia Zagreb, NIA EUR/sq.m/mth Cyprus Nicosia, GEA EUR/sq.m/mth Cyprus Limassol, GEA EUR/sq.m/mth Czech Republic Prague, GIA EUR/sq.m/mth Czech Republic Brno, GIA EUR/sq.m/mth Denmark Copenhagen, Harbour Area GEA DKK/sq.m/year 1, Denmark Aarhus, GEA DKK/sq.m/year 1, Estonia Tallinn, GIA EUR/sq.m/mth Finland Helsinki, NIA EUR/sq.m/mth France Paris, NIA EUR/sq.m/year France Paris, La Defense NIA EUR/sq.m/year France Lyon, NIA EUR/sq.m/year France Marseille, NIA EUR/sq.m/year FYRO Macedonia Skopje, GIA EUR/sq.m/mth Georgia Tbilisi, NIA USD/sq.m/mth Germany Berlin, NIA EUR/sq.m/mth Germany Frankfurt, NIA EUR/sq.m/mth Germany Hamburg, NIA EUR/sq.m/mth Germany Munich, GIA EUR/sq.m/mth Germany Dusseldorf, NIA EUR/sq.m/mth Greece Athens, Syntagma Square GEA EUR/sq.m/mth Hungary Budapest, GIA EUR/sq.m/mth Ireland Dublin, 2/4 Districts NIA EUR/sq.m/year Ireland Dublin, Int l Fin. Svcs. Centre NIA EUR/sq.m/year Ireland Cork, Lapps Quay NIA EUR/sq.m/year Italy Rome, Centre GEA EUR/sq.m/year Italy Milan, Centre GEA EUR/sq.m/year Kazakhstan Almaty, GIA USD/sq.m/mth Latvia Riga, GIA EUR/sq.m/mth Lithuania Vilnius, GIA EUR/sq.m/mth Luxembourg Luxembourg City, GEA EUR/sq.m/mth Netherlands Amsterdam, Zuidas GIA EUR/sq.m/year Netherlands Rotterdam, GIA EUR/sq.m/year Norway Oslo, GEA NOK/sq.m/year 4, Norway Bergen, GEA NOK/sq.m/year 2, Poland Warsaw, GIA EUR/sq.m/mth Poland Krakow, GIA EUR/sq.m/mth RENTAL TREND

15 OFFICE SPACE ACROSS THE WORLD COUNTRY SUMMARIES COUNTRY CITY MEASURING STANDARD RENT QUOTED IN RENT ANNUAL RENTAL GROWTH (%) NET INTERNAL AREA RENT USD/ SQ.FT/YR RENT EUR/ SQ.M/YR NIA EMEA Poland Wroclaw, GIA EUR/sq.m/mth Portugal Lisbon, Av de Liberdade GIA EUR/sq.m/mth Portugal Porto, GIA EUR/sq.m/mth Romania Bucharest, GIA EUR/sq.m/mth Romania Timisoara, GIA EUR/sq.m/mth Russia Moscow, GIA USD/sq.m/year 1, Russia St.Petersburg, GIA USD/sq.m/year Serbia Belgrade, GIA EUR/sq.m/mth Slovakia Bratislava, GIA EUR/sq.m/mth Slovenia Ljubljana, GIA EUR/sq.m/mth Spain Madrid, GEA EUR/sq.m/year Spain Barcelona, GEA EUR/sq.m/year Sweden Stockholm, NIA SEK/sq.m/year 4, Sweden Gothenburg, NIA SEK/sq.m/year 2, Switzerland Zurich, NIA CHF/sq.m/year Switzerland Geneva, NIA CHF/sq.m/year Turkey Istanbul, European side (Levent) GEA USD/sq.m/year Turkey Ankara, GEA USD/sq.m/year Ukraine Kyiv, GIA USD/sq.m/year United Kingdom London, West End NIA GBP/sq.ft/year , United Kingdom London, City NIA GBP/sq.ft/year United Kingdom Manchester, NIA GBP/sq.ft/year United Kingdom Birmingham, NIA GBP/sq.ft/year United Kingdom Belfast, NIA GBP/sq.ft/year United Kingdom Edinburgh, NIA GBP/sq.ft/year United Kingdom Glasgow, NIA GBP/sq.ft/year United Kingdom St.Peter Port, NIA GBP/sq.ft/year Bahrain Manama, Financial Harbour NIA BHD/sq.m/mth Israel Tel Aviv, GEA NIS/sq.m/mth Israel Tel Aviv (Ramat Hahayal) GEA NIS/sq.m/mth Jordan Amman, GEA USD/sq.m/year Lebanon Beirut, GEA USD/sq.m/year Qatar Doha, NIA QAR/sq.m/mth South Africa Durban, NIA ZAR/sq.m/mth South Africa Durban, La Lucia/Berea NIA ZAR/sq.m/mth South Africa Cape Town, NIA ZAR/sq.m/mth South Africa Cape Town, Bellville NIA ZAR/sq.m/mth South Africa Johannesburg, NIA ZAR/sq.m/mth South Africa Sandton, NIA ZAR/sq.m/mth United Arab Emirates Abu Dhabi, NIA AED/sq.m/year 2, United Arab Emirates Dubai, DIFC NIA AED/sq.ft/year RENTAL TREND

16 214 TECHNICAL SPECIFICATION EXCHANGE RATES COUNTRY LOCAL CURRENCY US DOLLAR EURO Australia Dollar (AUD) Bahrain Dinar (BHD) Brazil Real (BRL) Canada Dollar (CAD) China Renminbi (CNY) Denmark Krone (DKK) Eurozone Euro (EUR) Hong Kong Dollar (HKD) India Rupee (INR) Indonesia Rupiah (IDR) Israel Shekel (ILS) Japan Yen (JPY) Malaysia Ringgit (MYR) COUNTRY LOCAL CURRENCY US DOLLAR EURO New Zealand Dollar (NZD) Norway Kroner (NOK) Philippines Peso (PHP) Singapore Dollar (SGD) South Korea Won (KRW).9.7 South Africa Rand (ZAR) Sweden Krona (SEK) Switzerland Franc (CHF) Taiwan Dollar (TWD) Thailand Baht (THB) United Arab Emirates Dirham (AED) United Kingdom Pound (GBP) United States Dollar (USD) Source: Financial Times, 31st December 213. All currencies to four decimal places unless stated. DEFINITIONS For each location a standard definition of a prime unit is employed to endeavor to make the results as comparable as possible given varying local practices. Rents are often quoted on different measurements bases, and for this reason we have standardized the office rents used in this guide by adjusting the rent to a net internal area basis. Some countries quote their rents inclusive, and some exclusive, of service charges and property taxes. With this in mind, in order to make a more detailed comparison across the regions the total occupancy costs were used. office figures relate to new prime centre, high specification units of a standard size commensurate with demand in each location. The Net Internal Areas figures have been calculated by standardizing the floorspace measurements on which the quoted rent is based. There are various efficiency rates that are relevant to different countries, and we have used a standard for each country (unless stated). Cushman & Wakefield Asia quote all rents on a net usable area and quote effective rents, which takes into account rent-free periods or capital contributions where appropriate, although security deposits are not included. These rents have not been adjusted. Direct Class A rents are quoted in all US locations. Rents have been expressed in USD per square foot per year and EUR per square meter per year, converted using exchange rates as at December of the relevant year. Rental growth figures are quoted in local currency unless otherwise indicated. Total occupancy costs take into account service charges and local taxes to allow direct comparison between countries. REPORT INFORMATION This report was written by Barrie David and Erin Can of the European Research Group, London. Further information and copies of this report are available from Erin Can of the European Research Group, London. Telephone: erin.can@eur.cushwake.com Gain access to all of Cushman &Wakefield s research and publications globally by visiting our website. Covering global, regional and local markets, our Research & Insight page combines real business insight with emerging trends and market data. Visit now to download business briefings and special reports, and open the doors to powerful insights aimed at improving your productivity, profitability and competitive position. For industry-lead intelligence to support your real estate and business decisions, go to Cushman & Wakefield s Research and Insight at 14

17 OFFICE SPACE ACROSS THE WORLD CONTACTS GLOBAL OFFICE CONTACTS THE AMERICAS James M. Underhill CEO The Americas Tel: ASIA PACIFIC Richard Middleton Executive Managing Director Corporate Occupier & Investor Services Asia Pacific Tel: richard.middleton@ap.cushwake.com EMEA James Young Head of EMEA Offices Tel: james.young@eur.cushwake.com GLOBAL RESEARCH CONTACTS THE AMERICAS Maria T. Sicola Executive Managing Director Americas Research Tel: maria.sicola@cushwake.com ASIA PACIFIC Sigrid Zialcita Managing Director Asia Pacific Research Tel: sigrid.zialcita@ap.cushwake.com EMEA Barrie David Senior Research Consultant EMEA Research Tel: barrie.david@eur.cushwake.com ALLIANCE & ASSISTANCE This report has been prepared by Cushman & Wakefield and its alliance partners globally. The information was collected and analysed by the European Research Group from the Cushman & Wakefield network, with particular thanks to the following offices: AUSTRIA Inter-pool Immobilien GmbH GREECE Proprius SA NEW ZEALAND Bayleys Realty Group Ltd. BAHRAIN Cluttons LLP IRELAND Lisney LLP NORWAY Eiendomshuset Malling & Co. BULGARIA Forton ISRAEL Inter Israel Real Estate Consultants QATAR Cluttons LLP CHANNEL ISLANDS Buckley & Company Ltd. JORDAN Michael Dunn & Co S.A.L ROMANIA Activ Property Services DENMARK RED Property Advisers KAZAKHSTAN Veritas Brown SLOVENIA S-Invest d.o.o. ESTONIA Ober-Haus Real Estate Advisers LATVIA Ober-Haus Real Estate Advisers SOUTH AFRICA ProAfrica Property Services FINLAND Tuloskiinteistot Oy LEBANON Michael Dunn & Co S.A.L SWITZERLAND SPG Intercity FYRO MACEDONIA Forton LITHUANIA Ober-Haus Real Estate Advisers THAILAND Nexus Property Consultants Ltd. GEORGIA Veritas Brown MALAYSIA YY Property Solutions UNITED ARAB EMIRATES Cluttons LLP 15

18 Cushman & Wakefield (C&W) is known the world-over as an industry knowledge leader. Through the delivery of timely, accurate, high-quality research reports on the leading trends, markets around the world and business issues of the day, we aim to assist our clients in making property decisions that meet their objectives and enhance their competitive position. In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis, C&W also provides customized studies to meet specific information needs of owners, occupiers and investors. Published by Corporate Communications. 214 Cushman & Wakefield. All rights reserved. Cushman & Wakefield, LLP Portman Square London W1A 3BG Cushman & Wakefield is the world s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a position in the world s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and management assignments. Founded in 1917, it has approximately 25 offices in 6 countries, employing more than 16, professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has nearly $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets or developments contained in this material. The information on which this report is based has been obtained from sources we believe to be reliable, but we have not independently verified such information and we do not guarantee that the information is accurate or complete. 16

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