Singapore sees sharpest drop in office occupany costs: global survey

Source : Channel NewsAsia – 3 Jun 2009

Office occupancy costs fell most sharply in Singapore in the first quarter, followed by midtown New York and Hong Kong’s central business district, according to a survey by CBRE Research and Consulting.

The firm’s semiannual global survey released on Wednesday showed that the average occupancy cost in Singapore dropped 34.4 per cent in the January-March quarter from a year ago.

Midtown New York saw its occupancy costs fall 31.5 per cent, while Hong Kong’s central business district experienced a 29.9 per cent decline in occupancy costs.

The average cost of occupying office space slipped 2.8 per cent globally in the first quarter, with the world’s financial capitals absorbing the most damage from the global recession.

In terms of office rentals, Tokyo overtook London, Moscow and Hongkong to become the world’s most expensive city.

Rents in Tokyo’s inner central region surged to an average US$183.62 per square foot (psf) per annum, compared to US$172.62 average in London’s West End.

Moscow, which ranked second in the previous survey released in November, came in third in the latest survey – with annual rentals of US$170.24 psf. Hong Kong, formerly number three, dropped to fourth position with an average rent of US$150.42.