New York City, Boston, and San Francisco rank as the three most expensive office markets in the U.S. and the sixth, seventh and ninth most expensive in the world, according to Staubach Companys recent global office occupancy costs survey. The survey was a collaborative effort among DTZ Debenham Tie Leung, The Staubach Company, and AEW Capital Management, L.P. The survey further reveals that occupancy costs in these top three North American cities have risen between 30% and 49% during 2000.
The survey aims to provide a thorough analysis of full-service office occupancy costs for 76 districts in 72 cities worldwide, a more meaningful measurement for space occupiers than simply counting rents. Worldwide, London (West End), Tokyo (Central Five Wards), and London (City) comprise the top three most expensive office markets.
Occupancy cost is defined as the average total cost for leasing office space in a modern well-specified (Class A) office building in a prime Central Business District with a rentable area of about 10,000 square feet (929 square meters). Full-service costs include property tax, maintenance costs and tenant improvements, if these are payable by the tenant, but exclude rent-free periods, furniture and fixtures, and other leasing incentives.
Contact Staubach Company or AEW Capital Management to view the survey, or e-mail a request to stephanie_hoefken@richards.com.
