Their Name Is Rio and They’ve Surpassed Us as the Hemisphere’s Priciest Office Market
By Matt Coyne February 18, 2011 5:29 pm
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Not only did we just fall behind D.C. in commercial real estate pricing recovery, but now we’re behind Rio as the second most expensive office market in the Americas.
An annual report, released by Cushman & Wakefield (CWK) today, revealed that while South America, and Brazil in general, has skyrocketing office occupancy costs (rent, insurance, et al), the U.S. saw a 2 percent decline. All in all, Rio had a 47 percent increase in costs, the most out of a South American office market that saw increases almost across the board.
“The rise of rents in Rio de Janeiro’s office market results from very high demand and a lack of supply in the city,” Mariana Mokayad, Cushman & Wakefield South America’s research manager, said in the release. “The quality of the new stock being delivered is speeding up rental growth.”
Hong Kong’s central business district was the world’s most expensive office market, with London’s West End coming in at second. New York’s midtown stays strong at No. 5, with average occupancy costs of $115 per square foot annually (but Rio was No. 4, at $120).
Top 10 below.
|
Rank 2010 |
Rank 2011 |
City, Location |
Country |
Occupancy Cost $/sq.ft/year |
|
3 |
1 |
Hong Kong CBD |
China |
241 |
|
2 |
2 |
London West End |
UK |
233 |
|
1 |
3 |
Tokyo CBD |
Japan |
166 |
|
13 |
4 |
Rio de Janeiro CBD |
Brazil |
120 |
|
6 |
5 |
New York Midtown |
USA |
115 |
|
5 |
6 |
Mumbai CBD |
India |
114 |
|
7 |
7 |
Moscow CBD |
Russia |
108 |
|
8 |
8 |
Paris CBD |
France |
104 |
|
10 |
9 |
Zurich CBD |
Switzerland |
98 |
|
9 |
10 |
Milan CBD |
Italy |
91 |
mcoyne@observer.com
