Tech Companies Driving World's Most Expensive Office Markets
Cost of leasing premium offices is up, particularly in technology-rich cities.
JLL's latest Premium Office Rent Tracker (PORT), identifies the market with the most expensive premium office rent in the world is Central in Hong Kong (€323 per sq. ft) followed by New York's Midtown ($194 per sq. ft), London's West End ($193 per sq. ft), Beijing's Finance Street ($190 per sq. ft) and Silicon Valley in California ($159 per sq. ft).
Technology-rich cities feature strongly among the most expensive office markets globally, including the U.S. tech hubs of New York Midtown (2), Silicon Valley (5), San Francisco (13) and Boston (16); London (3) and Stockholm (20) in Europe; and Beijing (4), Shenzhen (8) and Tokyo (9) in Asia.
But these cities will need to work hard to maintain their attraction for firms and start-ups in the face of strong competition from more affordable tech hubs like Dublin (34), Berlin (42), Seattle (47), and Amsterdam (49).
Affordable Office Options
In Europe, Warsaw, Brussels, Amsterdam and Berlin offer some of the world's most affordable office space. Europe in fact has only one market in the top ten and just four in the top 20: London's West End (3); London City (14); Dubai, DIFC (19); Stockholm (20).
Outside the top 20 for EMEA are: Moscow (23); Paris, City (25); Zurich (27); Geneva (29); Frankfurt (32); Dublin (34); Istanbul (36); Milan (37); Madrid (38); Berlin (42); Paris, La Defense (46); Amsterdam (49); Brussels (50); Warsaw (51).
JLL's Hannah Dwyer commented, "Dublin has performed favorably, ranking 34th globally and 10th in Europe. Gross costs of $72 per sq. ft, are significantly lower than the top 5 cities, which span from $158 per sq. ft (Silicon Valley) to $323 per sq. ft (Hong Kong).
As a result, it has attracted substantial corporate interest in the last few years, with record take-up volumes expected for 2017 that surpass the previous peak.
The attractiveness of Dublin however, does not just come down to cost. Dublin has a competitive backdrop for corporations looking to move here, such as a 12.5% tax rate, a strong talent-base, a native English-speaking population, an existing technological infrastructure, and a solid track-record of global corporate clients already in the city.
Dublin is therefore a dynamic and competitive city, and with a strong pipeline of new space forecast for the next 5 years, firms are likely to continue to be attracted here."