Serviced Office Rents 2008

DTZ has released the results of a global survey conducted in 2008 comparing the cost per workstation in cities and countries around the world. The study found that the most expensive location remains London's West End, at about £15,200 per workstation per year.

Hong Kong, London City, Paris and Tokyo make up the remainder of the Top 5 most expensive locations for serviced offices in 2008. The cheapest serviced offices can be found in Indonesia, where the average workstation costs only £990 per year.

In 2006, Washington DC was the second most expensive location in the world, and despite success in a relatively stable market in the US in 2007, dropped out of the top five that year. Hong Kong had already jumped 13 places in 2006 but increased even further in 2008 due to a lack of new and available premium office space. Paris and London City were fourth and fifth respectively in 2006, and remain in the top five in 2008.

Ian Mitchell, National Director of Research at DTZ, claims the lack of new space will cause employers to become more innovative with buildings in central locations or to seek office space away from the city.

The DTZ also survey found that, in the Asia Pacific region, demand appears to be driving rents up, especially in Hong Kong, now the second most expensive location in the world, and Singapore. The top cities in the USA office space market include Washington DC, Palo Alto and Boston.