Midtown Ranks No. 3 in the World for Priciest Office Space

If you want office space in Midtown, you’re going to have to pay up.

Midtown’s office space was the third most expensive in the world, topped only by London’s West End and Hong Kong, which had the highest and second-highest cost per square foot respectively in the fourth quarter of 2024, according to a report from Savills.

Midtown ranked third on the global list with an average of $206.67 per square foot in occupier costs, a 9 percent quarter-over-quarter increase, the report found.

Part of the demand growth in New York, London and Hong Kong is thanks to the white-collar talent pools within those three cities. Sarah Brooks, associate director in Savills’ world research team, said rising demand for space is a result of in-office attendance trends that could continue throughout the year.

“Even with the darkest clouds seemingly behind us, fiscal and economic concerns will likely remain a top concern for businesses globally,” Brooks said in a statement. 

It’s unclear if Brooks is referring to policies percolating from the Trump administration in the form of tariffs on Canada, Mexico and China, but the lingering devastation to the office market because COVID-19 is settling into the pages of history books.

The price of Class A space across the world continued to rise by 0.3 percent in the fourth quarter while the cost of building out spaces rose by 0.2 percent, the report noted. Dubai and Los Angeles saw increases of 7 percent and 5 percent in net effective cost amid strengthening demand.

Dubai’s increase was the largest of the 35 global markets included in the report due to a constraint in supply. Meanwhile, L.A.’s Century City saw the highest demand — at least before the outbreak of devastating wildfires, which had already cost $50 billion in damages by Jan. 9, as Commercial Observer reported.

“Ultra-prime offices remain a key strategic asset for many businesses globally, and almost all industries saw an increase in square footage transacted in [second half of 2024] compared to the first half of last year,” Rick Schuham, CEO of global occupier services at Savills, said in a statement. “In 2025, we expect continued rent and leasing volume growth as the net effect cost growth we have seen across the world over the past year is set to continue for the foreseeable future.”

The price of office space in the Asia Pacific region declined 1 percent in the fourth quarter, with Class A buildings in China dipping by 2.6 percent.

Mark Hallum can be reached at mhallum@commercialobserver.com.