office space

Their Name Is Rio and They’ve Surpassed Us as the Hemisphere’s Priciest Office Market

midtown Their Name Is Rio and Theyve Surpassed Us as the Hemispheres Priciest Office Market 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 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

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