As rent continues to skyrocket in New York City, the people aren’t the only ones feeling the pressure. Businesses are also dealing with inflated rental prices for their spaces.
Recently Point2, a division of Yardi Systems Inc. that studies the trends of the real estate market, did a study on which cities in the world are the most expensive for office spaces. Despite remote work gaining popularity, office spaces are still vital spaces for many businesses.
While Manhattan is infamously known to be very expensive, it seems our city did not even make it into the top 5. Despite having the most expensive annual price in the country at $91 per square-foot every year, NYC took the 6th spot on the list.
In order, the list goes London, U.K., Tokyo, Japan, Beijing, China, Hong Kong, Paris, France and finally Manhattan, New York. An office in Midtown can lease for over half a million United States dollars, which isn’t even 56% of the cost of a space in London’s West End.
Companies have realized that giving their teams a healthy and vibrant work environment encourages collaboration and productivity, so these exuberant prices can put a damper on a company’s desire to provide a well-kept workspace. Yet, if you want to work in ionic locations, you’re going to have to pay the price. The beautiful views of the West End, Park Avenue’s convenience, you cannot replicate them so the price reflects that luxury.
Office spaces in Paris and Singapore go for $97 and $89 per square foot per year, respectively. The Marunouchi commercial district in Tokyo brings $123 per square foot per year to the table.
Still, London reigns supreme on top. The West End commands the charts with a whopping $163 per square foot per year, the average office space leased up to $1 million.
Even with their price, each of these cities offers something beautiful to its workers. Business workers will find that their spaces in these locations are up to par with their price. In the end, it is up to the business to decide what they will spend their money on.
Click here to read the full study.
