Research 2017. Hong Kong is world's most expensive office location. As cost-per-desk in London falls 19%
London drops to second place but at $22,665 per workstation remains twice as expensive as Paris or Frankfurt. Cost of locating 100 workers in Hong Kong is equivalent to 300 in Toronto, 500 in Madrid or 900 in Mumbai. Average annual cost per workstation rose by 1.5% globally in last 12 months. Working patterns and rise of technology likely to disrupt future rankings.
Hong Kong has replaced London’s West End as the most expensive office market in which to accommodate staff, according to new research from Cushman & Wakefield.
The annual Office Space Across The World report surveys occupancy costs across 215 office markets in 58 countries worldwide. Using proprietary data, it ranks occupancy costs per workstation and workplace densities for newly developed or refurbished office space globally.
At a global level, the average annual cost per workstation rose by 1.5% over the last 12 months. This was driven by the Americas where costs increased by 4.2% and Asia Pacific, where they rose by 3.4%. EMEA posted a fall of 1.3%. Currency fluctuations have produced some of the biggest changes in the report’s rankings. For companies looking at their local costs, this factor will exercise them more than property markets over the next year.
The report notes discernible trends already affecting the ranking of office markets. The phenomenal growth of the tech sector has spawned a new generation of firms less wedded to traditional global power cities than banks and financial institutions. Technology also enables employees with a laptop and internet connection to work anywhere, changing the corporate landscape as central office buildings increasingly assume a different role in fostering collaboration.