Astounding Language

The Inter Central District of Tokyo has replaced West End of London as the most expensive office market in the world, according to statistics revealed by latest research conducted by CB Richard Ellis Group Inc. (CBRE).

The annual survey conducted by CBRE looks at the trends in costs of office areas in around 170 cities around the world, and based on the survey, the company concluded that Tokyo is now the most expensive location for offices, with West End in London coming in at second position. Following London are Moscow in Russia, Tokyo’s Outer Central District, and Hong Kong’s Central Business District.

Overall, the occupancy prices in almost all major cities have been decreasing. The reason for this decrease in prices is the poor state of the global economy, leading to a decrease in demand for offices. The fall has been so severe that the prices of office space have gone down by as much as twenty per cent globally.

The extent of decrease in occupancy rates is clear when one looks at the fall in prices in London’s West End where deskspace, which was previously worth 300 USD per sq ft, now costs only USD 172 per sq ft. The Global Chief Economist for CBRE, Dr. Raymond Torto said that areas, which had a high concentration of financial companies, have faced a much greater decrease in prices than other locations.

However, the occupancy costs have gone up in a handful of cities due to a variety of reasons such as prevalence of low rates earlier and emergence of the city as a new destination. Some of these cities are Marseille, Perth, and Charlotte.