Tokyo has replaced Hong Kong as the world’s most costliest office location after rents slumped across main business capitals because of the global recession, says Bloomberg, citing broker Cushman & Wakefield Inc.
Citing figures from the broker, Bloomberg says rents for prime office buildings in Tokyo fell 21% to $163.90 a square foot last year. The cost of leasing offices in Hong Kong, which slipped to third place, dropped by 35%. London’s West End was the second most expensive district.
The global recession prompted companies to either lease less space or switch to cheaper premises and lease their excess space to other firms, hurting demand, the broker told Bloomberg.