office space across the world

2014

OFFICE SPACEACROSS THE WORLD

A Cushman & Wakefield Research Publication

1

CONTENTSGlobal Summary & Outlook 2

Most Expensive Locations 4

Americas Overview 6

Asia Pacific Overview 7

EMEA Overview 8

Market Metrics 10

Technical Specifications 14

Contacts 15

OFFICE SPACE ACROSS THE WORLD


INTRODUCTIONWelcome to the Cushman & Wakefield global Office Space Across the World publication for 2014. This report was prepared by the Cushman & Wakefield Research team to provide an analysis of the global office market during 2013, as well as discuss the industry’s main trends for the year ahead. The primary focus of this report is prime office rental performances and occupancy costs across the globe, including a ranking of the most expensive locations across the world in which to occupy office space. The report also provides a more in-depth rental and occupier overview for each region, concluding with a detailed list of market data pertaining to each office location.

The information and data provided in this report are based on a comprehensive survey of Cushman & Wakefield’s international offices, and the editors are extremely grateful to them for their time, effort and assistance.

The Cushman & Wakefield Research Group provides a strategic advisory and supporting role to our clients. Consultancy projects are undertaken on a local and international basis, providing in-depth advice and analysis, detailed market appraisals and location and investment strategies. For more information on what Research can do for you, please visit the Contacts page of this report (page 15). To gain access to all of Cushman & Wakefield’s research and publications globally, please visit the Research & Insight section of our global website:

www.cushmanwakefield.com/research

2

Global office rents moved up by 3% in 2013, which is the third consecutive year of a similar rental performance. While all three regions overall witnessed a relatively slow pace of rental growth over the year, certain areas – such as Africa and the Middle East – saw a more buoyant rental market, with prime rents up by as much as 10% in certain locations.

THE MOST EXPENSIVE GLOBAL MARKETS

The most expensive office market globally was London (West End), which retained its position ahead of Hong Kong in second place. Prime rents in London continued to move up during 2013, bolstered by strong occupier demand and a declining supply of high-quality space. With rents largely unchanged in Hong Kong over the year, the gap in total occupancy costs between London and Hong Kong has, in fact, widened.

New Delhi’s Connaught Place fell from fourth position to eighth despite prime rents being unchanged in 2013. This was primarily the result of an appreciation in both the US Dollar and Euro against the Indian Rupee in 2013, causing a shift in New Delhi’s position in terms of global occupancy costs. Similarly, exchange rate fluctuations with the Japanese Yen caused Tokyo to fall behind other comparable markets like Beijing in the overall ranking – despite prime rents in both cities remaining largely unchanged over the year.


% of countries showing rental growth

% of countries showing stable rents

Average Rental Change 3%

% of countries showing rental declines

46% 25% 28%

RENTAL PERFORMANCE IN THE YEAR TO DEC 2013

2014

GLOBAL SUMMARY AND OUTLOOK

3

OCCUPIER TRENDS

The global occupier market in 2013 was again characterised by caution, as tenants across the globe remained concerned regarding occupancy costs. Indeed, while some tenants were looking to upgrade to more efficient, cost-effective office space, many still sought to consolidate their existing operations. Over the year, occupiers retained a focus on well located, high quality space, and demand for this type of accommodation was steadily rising by the end of 2013. As a result, the options open to occupiers tightened, and almost half of the locations analysed within the report witnessed prime rents increase over the year, albeit marginally in most cases.

AMERICAS: A MIXED BAG

Coming out of the double-digit expansion seen in 2012, prime rental growth in the Americas region was much more subdued, with an overall regional rise of just 1%. Rental performance in South America in 2013 was slow, with muted growth in the key markets of Argentina and Brazil. Ongoing economic uncertainty in both of these markets caused occupier demand to ease and prime rents to fall over the year. Although both Ecuador and Colombia saw burgeoning demand over the year, it was not enough to offset the rental declines in these larger markets. In the year ahead, South America is likely to face more uncertainty, with economic concerns affecting business confidence in a number of locations, although a steady rise in stability across the region will be seen as North America expands.

In the USA, demand levels improved in 2013 as the economy recovered quicker than expected. Over the year, the USA saw strong leasing activity, with business confidence improving as the year progressed. However, rental performances were mixed across the country, with New York (Downtown) and Boston outperforming other markets. The outlook for 2014 is for the USA to continue to see rental levels expand and thus drive the overall regional growth in the year ahead.

ASIA PACIFIC: SLOW BUT STEADY

Rental growth was largely flat across Asia Pacific over the year, with an overall regional rental rise of just 2% in 2013. Economic conditions were more fragile in the first half of the year, although growth in core markets of China and Japan advanced as the year progressed. However, the region is well represented in terms of the most expensive office locations on a global scale. Hong Kong retained its position in second place overall, Beijing came in fourth position and Tokyo in fifth. Asia Pacific’s performance in 2014 is anticipated to be similar to that seen in 2013, with slow and stable demand anticipated to keep rental levels largely unchanged, albeit with incentives becoming more competitive.

EUROPE: FROM MARKET TO MARKET

In Europe, a lack of high quality space characterised a number of markets, including London and Frankfurt, and with demand in these cities advancing over the year, prime rents were put under upward pressure. Therefore, although the overall regional picture was relatively muted over the year, there were notable differences from market to market. Looking ahead, the rental trend seen in 2013 will continue in to next year, with rents in the large majority expected to see modest growth, with locations such as London and Dublin experiencing more significant rental growth for good quality space.



Ren

t (E

UR

/sq.

m/y

ear)

% R

enta

l Gro

wth

per

Yea

r

0

300

450

600

750

900

150

0

5

10

15

20

25

30

50

35

40

45

SandtonCBD

DurbanCBD

DurbanLa Lucia/

Berea

QuitoCBD

JakartaCBD

BangkokCBD

SingaporeCBD

DublinInt’l Fin.

Svcs. Centre

Cape TownCBD

New YorkDowntown

RENT RENTAL GROWTH

CITIES WITH THE LARGEST RENTAL GROWTH

% R

enta

l Cha

nge

per Y

ear

-20

-10

-5

0

10

15

-15

5

20102009 2011 2012 2013

GLOBAL AMERICAS ASIA PACIFIC EMEA

RENTAL PERFORMANCE IN THE 5 YEARS TO DEC 2013

“ Prime rents in London continued to move up during 2013, bolstered by strong occupier demand and a declining supply of high-quality space.”

4

€2,500€2,000€1,500€1,000€500€0

2014 RANK

2013 RANK

LOCATION

1

2

6

7

5

8

3

4

10

9

OCCUPANCY COST PER SQ. M. PER YEAR

14

13

11

21

12

15

n/a

16

17

18

19

25

22

24

31

26

27

29

23

32

30

n/a

4

3

2

1

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

30

31

32

33

34

34

28

RENT ADDITIONAL COSTS

29

MOST EXPENSIVE LOCATIONS BY COUNTRY (€/SQM/YEAR)

€2,122

€1,432

€1,092

€1,027

€1,003

€993

€991

€959

€895

€844

€803

€777

€756

€734

€718

€661

€659

€593

€572

€556

€540

€536

€506

€505

€485

€469

€457

€442

€441

€439

€434

€432

€427

€427

London, UK West End

Hong Kong, Hong Kong Central

Moscow, Russia CBD

Beijing, China CBD

Tokyo, Japan CBD (5 Central Wards)

New York, USA Midtown (Madison/5th Av.)

Rio de Janeiro, Brazil Zona Sul

New Delhi, India Connaught Place

Paris, France CBD

Sydney, Australia CBD

Singapore, Singapore CBD

Luxembourg, Luxembourg City CBD

Oslo, Norway CBD

Dubai, UAE DIFC

Geneva, Switzerland CBD

Almaty, Kazakhstan CBD

Doha, Qatar CBD

Stockholm, Sweden CBD

Istanbul, Turkey CBD (Levent)

Milan, Italy Centre

Munich, Germany CBD

Taipei, Taiwan CBD (Xinyi Planned Area)

Amsterdam, Netherlands Zuidas

Beirut, Lebanon CBD

Dublin, Ireland CBD (2/4 Districts)

Jakarta, Indonesia CBD

Tel Aviv, Israel CBD

Vancouver, Canada CBD

Ho Chi Minh City, Vietnam CBD

Madrid, Spain CBD

Seoul, South Korea CBD

Helsinki, Finland CBD

Tbilisi, Georgia CBD

Caracas, Venezuela CBD


2014

5

LOCATION RENT ADDITIONAL COSTS


MOST EXPENSIVE LOCATIONS BY COUNTRY

€2,500€2,000€1,500€1,000€500€0

2014 RANK

2013 RANK

20

36

33

35

37

39

44

38

40

43

OCCUPANCY COST PER SQ. M. PER YEAR

42

47

41

45

48

46

52

50

57

54

49

55

51

60

53

61

n/a

58

56

n/a

62

63

38

37

36

35

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

64

65

66

67

59

63

€426

€406

€395

€393

€373

€358

€345

€343

€343

€342

€339

€331

€318

€306

€298

€289

€258

€257

€242

€238

€235

€234

€231

€227

€227

€223

€222

€221

€207

€179

€179

€179

€150

Bogotá, Colombia Nogal

Auckland, New Zealand CBD

Warsaw, Poland CBD

Brussels, Belgium Quartier Leopold

Kyiv, Ukraine CBD

Athens, Greece Syntagma Square

Copenhagen, Denmark Harbour Area

Kuala Lumpur, Malaysia CBD

Budapest, Hungary CBD

Vienna, Austria Central

Bucharest, Romania CBD

Buenos Aires, Argentina Catalinas

Prague, Czech Republic CBD

Mexico City, Mexico CBD

Lisbon, Portugal Av. de Liberdade

Santiago, Chile Las Condes

Bangkok, Thailand CBD

Bratislava, Slovakia CBD

Belgrade, Serbia CBD

Vilnius, Lithuania CBD

Manila, Philippines Makati

Lima, Peru CBD

Manama, Bahrain Financial Harbour

Riga, Latvia CBD

Ljubljana, Slovenia CBD

Sofia, Bulgaria CBD

Skopje, FYRO Macedonia CBD

Tallinn, Estonia CBD

Zagreb, Croatia CBD

Quito, Ecuador CBD

Amman, Jordan CBD

Limassol, Cyprus CBD

Sandton, South Africa CBD


6

AMERICAS

Although rental performance across the Americas barely changed in 2013, there was a notable polarisation in performances between North and South America. Regional rental growth was fuelled by increases in both the USA and Mexico, where prime rents moved up by 4% and 6%, respectively. Most South American locations, however, saw prime rents decline in 2013, with Colombia, and 2013’s frontrunner – Brazil, experiencing the largest year-over-year declines. Consequently, this divergence between the two regions gave way for New York City (Madison/5th Avenue) to retake the title of the most expensive market in the Americas region, pushing last year’s number one, Rio de Janeiro (Zona Sul), into second place.

NORTH AMERICA HOLDING FIRM

In 2013, many office markets in the USA witnessed robust demand as the economy started to improve at a rate stronger than previously expected, although performances were not uniform across the entire country – for example, New York and Boston both experienced double-digit rental growth over the year in certain key submarkets, far outperforming many of the other markets within the country. Boston’s advancement was underpinned by strong activity particularly from the financial and professional services sector, which pushed down vacancy and, subsequently, saw rents accelerate by 16% in 2013. In New York, steady interest from the technology, legal, advertising, media and health care sectors helped to sustain the CBD submarkets. New completions and demand from these active industries helped to push prime rents up by 17% in the Downtown submarket over the year.

In Mexico the market was healthy over the year as both supply and demand remained largely consistent, and this steady demand for high-quality space helped to push support a 5% rise in rental rates in Mexico City. Canada as a whole was slightly more subdued than its other North American markets, with rents holding up in the majority of the key cities in 2013.

BRAZIL EASES BACK

The Brazilian economy, the principal driver within South America, was weaker than anticipated in 2013, which had a subsequent dampening on both business confidence and occupier demand. Furthermore, cities such as Bogotá and Buenos Aires saw supply outstrip demand over the year, resulting in prime rents easing in 2013.

In Rio de Janeiro (Zona Sul) prime rents fell by 7% over the year as occupiers continued to be cautious from the continued economic uncertainty, as well as the impending election in the latter half of 2014. However, the anticipation of the forthcoming World Cup and Olympic games over the next few years has brought a surge of infrastructure developments to the city, many of which are already underway, and it is hoped that these improvements will boost Rio’s attractiveness to international occupiers in the longer term.

Tota

l Occ

upan

cy C

ost

(USD

/sq.

ft/y

ear)

0

30

60

90

150

120

New YorkMidtown

Rio deJaneiro

Zona Sul

Sao PauloFaria Lima

WashingtonEast End

BostonBack Bay

San FranciscoNOMAFinancialDistrict

New YorkDowntown

MiamiBrickellAvenue

BrasiliaCBD

Los AngelesWest

NORTH AMERICA SOUTH AMERICA

MOST EXPENSIVE LOCATIONS: AMERICAS


2014

Ren

t (U

SD/s

q.ft

/yea

r)

% R

enta

l Gro

wth

per

Yea

r

0

25

37.5

50

62.5

75

12.5

0

5

10

15

20

25

30

QuitoCBD

New YorkDowntown

BogotaNogai

BostonBack Bay

Mexico CityCBD

San FranciscoNOMAFinancialDistrict

LimaCBD

SeattleFinancialDistrict

BrasiliaCBD

Los AngelesWest

RENT RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: AMERICAS

7

THE YEAR AHEAD

Looking ahead into 2014, with the foundation for stronger conditions in 2014 set in place, it is anticipated that the USA will continue to propel the region in terms of a buoyant economic growth. This should in turn have a positive effect on occupier demand and consequently help retain the upwards pressure on prime rents. In South America, the burgeoning markets of Colombia, Chile and Peru are anticipated to sustain any growth for the area. However, the outlook for Brazil – one of the key markets for the region is uncertain, with factors such as high inflation and an upcoming election becoming possible obstacles to future growth. As a result, business confidence and occupier demand are both expected to suffer from this and remain subdued, which could see further falls in prime rents over the course of the year.

ASIA PACIFIC

Rental performance throughout Asia Pacific in 2013 largely followed the subdued pattern seen in 2012, with prime rents moving up by 2%. Despite easing in the first half of the year, the economic climate across the region improved as the year progressed, with China and Japan expanding. However, these positive performances were not enough to sustain regional growth, and consequently, many occupiers were notably cautious over the majority of the year.

HONG KONG KEEPS ITS REGIONAL CROWN

Hong Kong was the second most expensive market globally and was also the most expensive location in Asia Pacific, followed by Beijing and Tokyo in second and third for the region, respectively. Occupier demand levels were muted in Hong Kong, with activity from larger occupiers in particular easing noticeably over the year. However, going forward, Hong Kong’s position as one of the most important global financial centres is anticipated to help buoy demand levels into 2014. Prime rents in Hong Kong are expected to remain largely stable with relatively few completions anticipated.

NORTH ASIA & INDIA: SLOWING RENTAL GROWTH

In Beijing, prime rents eased marginally over the year, albeit figures starting at a very high base in early 2013. Indeed, the high rents within the CBD have caused many occupiers to rationalise their space as a way to cut down on costs. As China’s GDP growth remains steady, the continued development of the tertiary sector within Beijing has maintained momentum. However, at the current time there are concerns of future oversupply, leading many developers to review their development pipeline carefully. With occupier demand still relatively robust, prime rents are anticipated to be fairly flat in 2014.

Rental performance across India has been mixed, with the major markets remaining stable whilst others witnessed minor corrections. New Delhi’s CBD (Connaught Place) has remained the most expensive location across the country in 2013 due to its strong rental levels holding firm. With the domestic economy regaining some momentum towards the end of the year, occupier demand moved up significantly in the final quarter of the year, helping to push prime rents upwards in select cities that have low vacancies.



Tota

l Occ

upan

cy C

ost

(USD

/sq.

ft/y

ear)

0

65

97.5

130

195

32.5

162.5

Hong KongCentral

BeijingCentral

TokyoCBD

(5 CentralWards)

New DelhiConnaught

Place

ShanghaiLujiazui

(Pudong)

SydneyCBD

SingaporeCBD

MumbaiBandra Kurla

Complex

BrisbaneCentre

ShenzhenFutian

NORTH ASIA & INDIA SOUTH ASIA & PACIFIC

MOST EXPENSIVE LOCATIONS: ASIA PACIFIC“ Half of the surveyed countries in the Americas region witnessed prime rents rise in 2013.”

8

The prime office market in Tokyo saw rental declines earlier in 2013; however, levels quickly bounced back to previous figures as the economy saw conditions gradually regain momentum. Business confidence increased over the year, and consequently many occupiers have become less cautious. With demand picking up, prime space in some building is becoming scarce, and therefore a rise in prime rents may occur over the next year.

BURGEONING MARKETS

The Metro Manila office market was generally positive throughout 2013, primarily driven by the continued development of the Business Process Outsourcing (BPO) sector. Rents continued to climb due to strong absorption figures, especially in the CBD markets of Makati and Bonifacio Global City, while vacancy remained low despite the growth of office supply. Corporate occupiers continue to expand across major hubs, taking advantage of the talented pool and the lower wages of office workers in emerging cities.

The most notable rental growth over the year was seen in both Indonesia and Thailand, where prime rents rose by 20% in both Jakarta and Bangkok, respectively. In Indonesia, the improving domestic economy in 2013 translated into sturdy occupier demand and thus expanding take-up levels in Jakarta. In Thailand, limited supply and steady demand characterised the market in Bangkok and subsequently resulted in prime rents increasing over the year. However, the 2014 outlook for Thailand is more volatile due to the ongoing political uncertainty in the country. If political indecision is prolonged, some occupiers will take longer to conclude transactions or may start to look at alternative locations.

WHAT’S IN STORE

A slow performance has become the new norm for Asia Pacific; however, with regional GDP growth still hovering around 5.0-5.5%, Asia Pacific is still ahead of the other regions as seen in 2013. For 2014, a similar trajectory is anticipated, with slow but steady conditions akin to the previous year supporting occupier demand across the region. The key economies of China, Japan and markets in Southeast Asia are anticipated to drive the region forward, with office market demand in particular gaining momentum over the year.

EMEA

After five years of financial and economic uncertainty within Europe, the region finally began to see some stability return to the market as 2013 progressed, albeit with notable differences between markets. However, this improvement in economic conditions arrived too late to drive much growth in prime offices rents, with an overall regional uplift of just 3%. Nevertheless, this is the highest regional rise seen since 2008, before the depths of the economic downturn.

LONDON LEADS THE WAY...

Although the overall regional rental growth was minimal, EMEA still managed to possess the most expensive office market in the world for 2013, as London (West End) retained its title for the second consecutive year. The West End submarket is characterised by strong demand amid a dwindling supply of modern space. Indeed, with leasing activity building momentum over the year, these conditions bolstered a 5% rise in prime office rents in 2013. Rounding out the EMEA ranking, Moscow CBD followed London (West End) in second place, with Paris CBD in third.


2014

Ren

t (U

SD/s

q.ft

/yea

r)

% R

enta

l Gro

wth

per

Yea

r

0

40

60

80

100

120

20

0

5

10

15

20

25

JakartaCBD

BangkokCBD

SingaporeCBD

ManilaMakati

TaipeiCBD

(Xinyi Planned Area)

ShenzhenFutian

SeoulCBD

ShanghaiLujiazui

(Pudong)

AucklandCBD

KolkataCBD

RENT RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: ASIA PACIFIC

9

Key European cities such as London and Frankfurt saw prime rents appreciate in 2013, and this helped Western Europe outperform Central and Eastern Europe (CEE) for the first time since 2010. Rents in CEE moved up by just 0.2% in 2013 whereas Western Europe moved ahead by just over 2%. Furthermore, Dublin has rebounded strongly in 2013, and a combination of solid demand against a shortage of prime space has seen rents move up significantly, most notably in the IFS Centre submarket, where an annual rise of 19% was the highest in Europe.

...BUT GROWTH SURGES IN MIDDLE EAST & AFRICA

The most significant rental expansion within the EMEA region was seen in the Middle East and Africa which witnessed rents increase by 14%. Both Qatar and Dubai saw business confidence pick-up through the year, resulting in increased office market activity as well as supporting prime rental growth of 10% and 5%, respectively. However, it was South Africa that experienced the highest rental growth in the EMEA region in 2013, with prime rents accelerating by almost 30%. The South African market saw a notable increase in the amount of large transactions over the year in the midst of a particularly active occupational market.

OCCUPIER TREND: COST CONCERNS

While demand is strengthening in a number of European markets, occupiers have remained cost conscious over the year, and consequently space rationalisation and consolidations have continued to drive a large component of regional market activity. However, there has been a divergence between prime and secondary space, with occupiers showing an increasing preference for good quality space rather than secondary. As a result, it has primarily been those locations that are experiencing a shortage of prime space that have seen rents rise over the year.

GOING FORWARD

Looking ahead for the region, the overall lack of high quality space is expected to push many occupiers towards moving sooner rather than later, as they look to secure deals on the limited supply of quality space that is available. With the development pipeline anticipated to continue at low levels until the latter part of 2014, prime rents are likely to remain under pressure. Overall it will still be a mixed picture across Europe on a market-by-market basis in terms of rental performance, but growth across the region is expected to be slow but steady as confidence gradually returns.



Ren

t (E

UR

/sq.

m/Y

ear)

% R

enta

l Gro

wth

per

Yea

r

0

200

700

300

400

500

600

100

0

10

20

30

40

50

SandtonCBD

DurbanCBD

DurbanLa Lucia/Berea

DublinInt’l Fin.

Svcs. Centre

CapeTownCBD

RigaCBD

Dublin2/4 Districts

JohannesburgCBD

CapeTown

Bellville

LuxembourgCBD

COST RENTAL GROWTH

CITIES WITH LARGEST RENTAL GROWTH: EMEA

Tota

l Occ

upan

cy C

ost

(EU

R/s

q.ft

.yea

r)

0

500

1,000

1,500

2,500

2,000

LondonWest End

LondonCity

MoscowCBD

ParisCBD

LuxembourgCBD

OsloCBD

DubaiDIFC

GenevaCBD

AlmatyCBD

DohaCBD

WESTERN EUROPE CEE MEA

MOST EXPENSIVE LOCATIONS: EMEA

ANNUAL SUB-REGIONAL RENTAL GROWTH

1%Europe

13%Middle East & Africa

10

COUNTRY CITY MEASURING STANDARD

RENT QUOTED IN RENT ANNUAL RENTAL

GROWTH (%)

RENT USD/SQ.FT/YR

RENT EUR/SQ.M/YR NIA

RENTAL TREND

2014

AMERICAS

Argentina Buenos Aires, Puetro Madero NIA USD/sq.m/mth 26.50 -5 29.54 230.77

Argentina Buenos Aires, Catalinas NIA USD/sq.m/mth 30.00 0 33.45 261.25

Brazil Sao Paulo, Faria Lima NIA BRL/sq.m/mth 161.68 -23 76.40 596.79

Brazil Rio de Janeiro, Zona Sul NIA BRL/sq.m/mth 254.36 -7 120.19 938.89

Brazil Brasilia, CBD NIA BRL/sq.m/mth 107.18 3 50.65 395.62

Canada Toronto, CBD GIA CAD/sq.ft/year 25.97 1 27.86 217.66

Canada Montreal, CBD GIA CAD/sq.ft/year 20.21 -4 21.68 169.38

Canada Calgary, CBD GIA CAD/sq.ft/year 33.87 1 36.34 283.87

Canada Vancouver, CBD GIA CAD/sq.ft/year 34.11 -1 36.30 285.88

Canada Ottawa, CBD GIA CAD/sq.ft/year 25.57 -4 27.44 214.31

Colombia Bogota, Nogal NIA USD/sq.m/mth 39.88 16 44.46 347.29

Colombia Bogota, Andino NIA USD/sq.m/mth 39.36 -6 43.88 342.76

Chile Santiago, Las Condes NIA USD/sq.m/mth 28.78 -1 32.08 250.62

Ecuador Quito, CBD NIA USD/sq.m/mth 17.26 23 19.24 150.30

Mexico Mexico City, CBD NIA USD/sq.m/mth 31.18 6 34.76 271.52

Peru Lima, CBD NIA USD/sq.m/mth 22.60 5 25.20 196.81

United States Atlanta, Midtown GIA USD/sq.ft/year 29.39 -4 32.33 252.53

United States Boston, Back Bay GIA USD/sq.ft/year 59.51 16 71.41 557.82

United States Chicago, West Loop GIA USD/sq.ft/year 39.26 -4 49.08 383.34

United States Houston, CBD GIA USD/sq.ft/year 38.49 0 46.19 360.79

United States Los Angeles, West GIA USD/sq.ft/year 49.68 2 57.13 446.27

United States Miami, Brickell Avenue GIA USD/sq.ft/year 43.80 1 65.26 509.78

United States New York, Downtown GIA USD/sq.ft/year 53.79 17 68.31 533.61

United States New York, Midtown (Madison/5th Avenue)

GIA USD/sq.ft/year 100.07 -1 127.09 992.72

United States Philadelphia, West of Broad GIA USD/sq.ft/year 27.30 1 31.94 249.50

United States San Francisco, NOMA Financial District

GIA USD/sq.ft/year 58.50 5 70.20 548.35

United States Seattle, Financial District GIA USD/sq.ft/year 35.22 4 40.50 316.38

United States Washington, East End GIA USD/sq.ft/year 64.62 1 76.25 595.62

Venezuela Caracas, CBD GIA USD/sqm/month 46.00 0 51.28 400.58

COUNTRY SUMMARIES


2014

NET INTERNAL AREA

11




GROWTH (%)

RENT USD/SQ.FT/YR


RENTAL TREND

2014

ASIA PACIFIC

Australia Sydney , CBD NIA AUD/sq.m/year 1,300.00 3 108.05 844.05

Australia Melbourne, CBD NIA AUD/sq.m/year 800.00 0 66.49 519.41

Australia Brisbane, Centre NIA AUD/sq.m/year 870.00 1 72.31 564.86

China Beijing, CBD NIA CNY/sq.m/mth 665.00 -3 122.46 956.61

China Shanghai, Lujiazui (Pudong) NIA CNY/sq.m/mth 579.63 5 106.74 833.80

China Guangzhou, Pearl River New City

NIA CNY/sq.m/mth 245.23 -10 45.16 352.76

China Chengdu, CBD NIA CNY/sq.m/mth 161.10 -11 29.67 231.74

China Shenzhen, Futian NIA CNY/sq.m/mth 329.00 9 60.59 473.27

Hong Kong Hong Kong, Central NIA HKD/sq.ft/mth 103.39 -1 160.01 1,249.92

India Mumbai, Bandra Kurla Complex

GEA INR/sq.ft/mth 285.12 0 82.42 643.81

India Mumbai, CBD GEA INR/sq.ft/mth 275.10 0 62.44 487.78

India New Delhi, Connaught Place GEA INR/sq.ft/mth 414.39 0 114.96 898.03

India Bengaluru, CBD GEA INR/sq.ft/mth 85.47 -3 23.69 185.04

India Chennai, CBD GEA INR/sq.ft/mth 75.50 0 19.53 152.56

India Hyderabad, Suburban (Madhapur, Gachibowli)

GEA INR/sq.ft/mth 41.19 2 9.99 78.03

India Pune, CBD GEA INR/sq.ft/mth 80.01 -4 20.70 161.67

India Kolkata, CBD GEA INR/sq.ft/mth 133.27 4 38.52 300.93

Indonesia Jakarta, CBD GIA USD/sq.m/mth 47.26 20 60.06 469.17

Japan Tokyo, CBD (5 Central Wards)

NIA JPY/tsubo/mth 40,000.00 0 128.34 1,002.56

South Korea Seoul, CBD GIA KRW/sq.m/mth 32,299.00 6 40.26 314.50

South Korea Seoul, Gangnam GIA KRW/sq.m/mth 26,933.00 -1 33.57 262.25

South Korea Seoul, Yeouido GIA KRW/sq.m/mth 21,149.00 -5 26.36 205.93

Malaysia Kuala Lumpur, CBD NIA MYR/sq.ft/mth 12.00 0 43.96 343.41

New Zealand Auckland, CBD NIA NZD/sq.m/mth 45.00 5 41.29 322.54

Philippines Manila, Makati NIA PHP/sq.m/mth 1,006.00 12 25.27 197.39

Philippines Manila, Ortigas NIA PHP/sq.m/mth 650.00 0 16.33 127.54

Singapore Singapore, CBD NIA SGP/sq.ft/mth 10.82 19 102.84 803.30

Taiwan Taipei, CBD (Xinyi Planned Area)

GEA TWD/ping/mth 5,698.00 10 64.47 503.65

Thailand Bangkok, CBD GIA THB/sq.m/mth 900.00 20 32.98 257.60

Vietnam Ho Chi Minh City, CBD NIA USD/sq.m/mth 45.70 -7 50.95 397.97

Vietnam Hanoi, CBD NIA USD/sq.m/mth 37.60 -6 41.92 327.43

COUNTRY SUMMARIES


NET INTERNAL AREA

12



GROWTH (%)

RENT USD/SQ.FT/YR


RENTAL TREND

2014

EMEA

Austria Vienna, Central NIA EUR/sq.m/mth 25.00 2 38.41 300.00

Austria Innsbruck, CBD NIA EUR/sq.m/mth 11.00 0 16.90 132.00

Belgium Brussels, Quartier Leopold GEA EUR/sq.m/year 275.00 -4 40.49 316.25

Belgium Antwerp, Centre GEA EUR/sq.m/year 145.00 0 21.35 166.75

Bulgaria Sofia, CBD GEA EUR/sq.m/mth 12.50 0 22.08 172.50

Croatia Zagreb, CBD NIA EUR/sq.m/mth 14.50 -6 22.28 174.00

Cyprus Nicosia, CBD GEA EUR/sq.m/mth 14.00 -7 18.28 142.80

Cyprus Limassol, CBD GEA EUR/sq.m/mth 14.00 -13 18.28 142.80

Czech Republic Prague, CBD GIA EUR/sq.m/mth 20.25 -4 33.60 262.44

Czech Republic Brno, CBD GIA EUR/sq.m/mth 12.00 4 19.91 155.52

Denmark Copenhagen, Harbour Area GEA DKK/sq.m/year 1,800.00 0 34.59 270.23

Denmark Aarhus, CBD GEA DKK/sq.m/year 1,200.00 0 23.06 180.15

Estonia Tallinn, CBD GIA EUR/sq.m/mth 13.00 8 22.97 179.40

Finland Helsinki, CBD NIA EUR/sq.m/mth 32.00 0 49.16 384.00

France Paris, CBD NIA EUR/sq.m/year 800.00 -2 102.41 800.00

France Paris, La Defense NIA EUR/sq.m/year 530.00 -4 67.85 530.00

France Lyon, CBD NIA EUR/sq.m/year 260.00 0 33.28 260.00

France Marseille, CBD NIA EUR/sq.m/year 240.00 0 30.72 240.00

FYRO Macedonia Skopje, CBD GIA EUR/sq.m/mth 13.50 0 23.23 181.44

Georgia Tbilisi, CBD NIA USD/sq.m/mth 40.00 0 44.59 348.33

Germany Berlin, CBD NIA EUR/sq.m/mth 22.00 0 33.80 264.00

Germany Frankfurt, CBD NIA EUR/sq.m/mth 37.00 9 56.84 444.00

Germany Hamburg, CBD NIA EUR/sq.m/mth 24.00 0 36.87 288.00

Germany Munich, CBD GIA EUR/sq.m/mth 32.00 2 57.83 451.76

Germany Dusseldorf, CBD NIA EUR/sq.m/mth 27.50 10 42.25 330.00

Greece Athens, Syntagma Square GEA EUR/sq.m/mth 22.00 0 39.88 311.52

Hungary Budapest, CBD GIA EUR/sq.m/mth 21.00 0 35.49 277.20

Ireland Dublin, 2/4 Districts NIA EUR/sq.m/year 355.00 16 45.45 355.00

Ireland Dublin, Int’l Fin. Svcs. Centre NIA EUR/sq.m/year 231.00 19 29.57 231.00

Ireland Cork, Lapps Quay NIA EUR/sq.m/year 200.00 5 25.60 200.00

Italy Rome, Centre GEA EUR/sq.m/year 425.00 -6 58.76 459.00

Italy Milan, Centre GEA EUR/sq.m/year 475.00 -5 65.67 513.00

Kazakhstan Almaty, CBD GIA USD/sq.m/mth 60.00 9 76.92 600.87

Latvia Riga, CBD GIA EUR/sq.m/mth 14.00 17 22.58 176.40

Lithuania Vilnius, CBD GIA EUR/sq.m/mth 14.50 4 24.50 191.40

Luxembourg Luxembourg City, CBD GEA EUR/sq.m/mth 45.00 13 85.72 669.60

Netherlands Amsterdam, Zuidas GIA EUR/sq.m/year 365.00 1 54.97 429.41

Netherlands Rotterdam, CBD GIA EUR/sq.m/year 180.00 0 27.11 211.76

Norway Oslo, CBD GEA NOK/sq.m/year 4,500.00 6 85.45 667.47

Norway Bergen, CBD GEA NOK/sq.m/year 2,250.00 2 42.72 333.74

Poland Warsaw, CBD GIA EUR/sq.m/mth 25.00 -6 41.48 324.00

Poland Krakow, CBD GIA EUR/sq.m/mth 15.00 0 24.89 194.40

COUNTRY SUMMARIES


2014

NET INTERNAL AREA

13




GROWTH (%)

RENT USD/SQ.FT/YR


RENTAL TREND

2014

EMEA

Poland Wroclaw, CBD GIA EUR/sq.m/mth 15.50 0 25.72 200.88

Portugal Lisbon, Av de Liberdade GIA EUR/sq.m/mth 18.50 0 31.26 244.20

Portugal Porto, CBD GIA EUR/sq.m/mth 13.50 0 22.81 178.20

Romania Bucharest, CBD GIA EUR/sq.m/mth 19.00 0 34.34 268.24

Romania Timisoara, CBD GIA EUR/sq.m/mth 12.00 4 21.69 169.41

Russia Moscow, CBD GIA USD/sq.m/year 1,200.00 0 127.09 992.74

Russia St.Petersburg, CBD GIA USD/sq.m/year 440.00 -8 46.60 364.01

Serbia Belgrade, CBD GIA EUR/sq.m/mth 15.00 0 25.81 201.60

Slovakia Bratislava, CBD GIA EUR/sq.m/mth 15.00 -3 24.89 194.40

Slovenia Ljubljana, CBD GIA EUR/sq.m/mth 11.00 -15 19.94 155.76

Spain Madrid, CBD GEA EUR/sq.m/year 294.00 0 45.16 352.80

Spain Barcelona, CBD GEA EUR/sq.m/year 213.00 -1 32.72 255.60

Sweden Stockholm, CBD NIA SEK/sq.m/year 4,650.00 1 67.26 525.42

Sweden Gothenburg, CBD NIA SEK/sq.m/year 2,450.00 0 35.44 276.84

Switzerland Zurich, CBD NIA CHF/sq.m/year 760.00 0 79.39 620.16

Switzerland Geneva, CBD NIA CHF/sq.m/year 800.00 0 83.56 652.79

Turkey Istanbul, European side (Levent)

GEA USD/sq.m/year 528.00 0 60.83 475.12

Turkey Ankara, CBD GEA USD/sq.m/year 276.00 0 31.80 248.36

Ukraine Kyiv, CBD GIA USD/sq.m/year 430.00 0 47.14 368.21

United Kingdom London, West End NIA GBP/sq.ft/year 110.00 5 182.18 1,423.11

United Kingdom London, City NIA GBP/sq.ft/year 57.50 5 95.23 743.90

United Kingdom Manchester, CBD NIA GBP/sq.ft/year 30.00 5 49.69 388.12

United Kingdom Birmingham, CBD NIA GBP/sq.ft/year 27.50 0 45.54 355.78

United Kingdom Belfast, CBD NIA GBP/sq.ft/year 13.00 4 21.53 168.19

United Kingdom Edinburgh, CBD NIA GBP/sq.ft/year 29.00 7 48.03 375.18

United Kingdom Glasgow, CBD NIA GBP/sq.ft/year 28.00 4 46.37 362.25

United Kingdom St.Peter Port, CBD NIA GBP/sq.ft/year 45.00 6 74.53 582.18

Bahrain Manama, Financial Harbour NIA BHD/sq.m/mth 8.00 0 23.66 184.79

Israel Tel Aviv, CBD GEA NIS/sq.m/mth 97.00 1 41.44 323.68

Israel Tel Aviv (Ramat Hahayal) GEA NIS/sq.m/mth 73.00 6 31.18 243.59

Jordan Amman, CBD GEA USD/sq.m/year 170.00 -11 19.58 152.98

Lebanon Beirut, CBD GEA USD/sq.m/year 450.00 0 51.64 403.40

Qatar Doha, CBD NIA QAR/sq.m/mth 230.00 10 70.41 550.04

South Africa Durban, CBD NIA ZAR/sq.m/mth 70.00 40 7.45 58.20

South Africa Durban, La Lucia/Berea NIA ZAR/sq.m/mth 135.00 35 14.37 112.25

South Africa Cape Town, CBD NIA ZAR/sq.m/mth 100.00 18 10.64 83.15

South Africa Cape Town, Bellville NIA ZAR/sq.m/mth 85.00 13 9.05 70.67

South Africa Johannesburg, CBD NIA ZAR/sq.m/mth 75.00 15 7.98 62.36

South Africa Sandton, CBD NIA ZAR/sq.m/mth 180.00 44 19.16 149.66

United Arab Emirates Abu Dhabi, CBD NIA AED/sq.m/year 2,000.00 0 50.59 395.16

United Arab Emirates Dubai, DIFC NIA AED/sq.ft/year 285.00 10 77.59 606.12

COUNTRY SUMMARIES


NET INTERNAL AREA

14

TECHNICAL SPECIFICATION

COUNTRY LOCAL CURRENCY US DOLLAR EURO

Australia Dollar (AUD) 0.8946 0.6493

Bahrain Dinar (BHD) 2.6525 1.9249

Brazil Real (BRL) 0.4239 0.3076

Canada Dollar (CAD) 0.9412 0.6830

China Renminbi (CNY) 0.1652 0.1199

Denmark Krone (DKK) 0.1847 0.1340

Eurozone Euro (EUR) 1.3780 1.0000

Hong Kong Dollar (HKD) 0.1290 0.0936

India Rupee (INR) 0.0162 0.0117

Indonesia Rupiah (IDR) 0.0000822 0.0000595

Israel Shekel (ILS) 0.2881 0.2091

Japan Yen (JPY) 0.0095 0.0069

Malaysia Ringgit (MYR) 0.3053 0.2216

COUNTRY LOCAL CURRENCY US DOLLAR EURO

New Zealand Dollar (NZD) 0.8230 0.5973

Norway Kroner (NOK) 0.1648 0.1196

Philippines Peso (PHP) 0.0225 0.0164

Singapore Dollar (SGD) 0.7920 0.5748

South Korea Won (KRW) 0.0009 0.0007

South Africa Rand (ZAR) 0.0955 0.0693

Sweden Krona (SEK) 0.1557 0.1130

Switzerland Franc (CHF) 1.1244 0.8160

Taiwan Dollar (TWD) 0.0336 0.0244

Thailand Baht (THB) 0.0304 0.0221

United Arab Emirates Dirham (AED) 0.2723 0.1976

United Kingdom Pound (GBP) 1.6562 1.2019

United States Dollar (USD) 1.0000 0.7257

EXCHANGE RATES

Source: Financial Times, 31st December 2013. All currencies to four decimal places unless stated.

DEFINITIONS

For each location a standard definition of a prime unit is employed to endeavor to make the results as comparable as possible given varying local practices. Rents are often quoted on different measurements bases, and for this reason we have standardized the office rents used in this guide by adjusting the rent to a net internal area basis. Some countries quote their rents inclusive, and some exclusive, of service charges and property taxes. With this in mind, in order to make a more detailed comparison across the regions the total occupancy costs were used. CBD office figures relate to new prime centre, high specification units of a standard size commensurate with demand in each location.

The Net Internal Areas figures have been calculated by standardizing the floorspace measurements on which the quoted rent is based. There are various efficiency rates that are relevant to different countries, and we have used a standard for each country (unless stated). Cushman & Wakefield Asia quote all rents on a net usable area and quote effective rents, which takes into account rent-free periods or capital contributions where appropriate, although security deposits are not included. These rents have not been adjusted. Direct Class A rents are quoted in all US locations. Rents have been expressed in USD per square foot per year and EUR per square meter per year, converted using exchange rates as at December of the relevant year. Rental growth figures are quoted in local currency unless otherwise indicated. Total occupancy costs take into account service charges and local taxes to allow direct comparison between countries.

REPORT INFORMATION

This report was written by Barrie David and Erin Can of the European Research Group, London. Further information and copies of this report are available from Erin Can of the European Research Group, London.

Telephone: +44 207 152 5206Email: [email protected]

Gain access to all of Cushman &Wakefield’s research and publications globally by visiting our website. Covering global, regional and local markets, our Research & Insight page combines real business insight with emerging trends and market data. Visit now to download business briefings and special reports, and open the doors to powerful insights aimed at improving your productivity, profitability and competitive position. For industry-lead intelligence to support your real estate and business decisions, go to Cushman & Wakefield’s Research and Insight at www.cushmanwakefield.com/research


2014

15

ALLIANCE & ASSISTANCE

This report has been prepared by Cushman & Wakefield and its alliance partners globally. The information was collected and analysed by the European Research Group from the Cushman & Wakefield network, with particular thanks to the following offices:

AUSTRIA Inter-pool Immobilien GmbH

BAHRAIN Cluttons LLP

BULGARIA Forton

CHANNEL ISLANDS Buckley & Company Ltd.

DENMARK RED – Property Advisers

ESTONIA Ober-Haus Real Estate Advisers

FINLAND Tuloskiinteistot Oy

FYRO MACEDONIA Forton

GEORGIA Veritas Brown

GREECE Proprius SA

IRELAND Lisney LLP

ISRAEL Inter Israel Real Estate Consultants

JORDAN Michael Dunn & Co S.A.L

KAZAKHSTAN Veritas Brown

LATVIA Ober-Haus Real Estate Advisers

LEBANON Michael Dunn & Co S.A.L

LITHUANIA Ober-Haus Real Estate Advisers

MALAYSIA YY Property Solutions

NEW ZEALAND Bayleys Realty Group Ltd.

NORWAY Eiendomshuset Malling & Co.

QATAR Cluttons LLP

ROMANIA Activ Property Services

SLOVENIA S-Invest d.o.o.

SOUTH AFRICA ProAfrica Property Services

SWITZERLAND SPG Intercity

THAILAND Nexus Property Consultants Ltd.

UNITED ARAB EMIRATES Cluttons LLP

GLOBAL OFFICE CONTACTS

THE AMERICAS

James M. UnderhillCEO The AmericasTel: +1 202 471 3600Email: [email protected]

ASIA PACIFIC

Richard Middleton Executive Managing DirectorCorporate Occupier & Investor Services Asia PacificTel: +85 2 2956 7075Email: [email protected]

EMEA

James YoungHead of EMEA OfficesTel: +44 207 152 5113Email: [email protected]

GLOBAL RESEARCH CONTACTS

THE AMERICAS

Maria T. SicolaExecutive Managing DirectorAmericas ResearchTel: +1 415 773 3542Email: [email protected]

ASIA PACIFIC

Sigrid ZialcitaManaging DirectorAsia Pacific ResearchTel: +65 6232 0875Email: [email protected]

EMEA

Barrie DavidSenior Research ConsultantEMEA ResearchTel: +44 207 152 5937Email: [email protected]

CONTACTS



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Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and management assignments. Founded in 1917, it has approximately 250 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has nearly $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge

This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets or developments contained in this material. The information on which this report is based has been obtained from sources we believe to be reliable, but we have not independently verified such information and we do not guarantee that the information is accurate or complete.

Published by Corporate Communications. ©2014 Cushman & Wakefield. All rights reserved.

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