New York now has the highest global occupier costs, London looks more competitive.
Despite recent signs of slowing office rents and elevated use of incentives and concessions to both office and residential tenants in New York, the Big Apple now ranks as the world’s most expensive city in which to accommodate staff. This is well ahead of Hong Kong and London and almost twice the price of nearest US rival San Francisco, according to the Savills Live-Work Index* which compares total housing and office rental costs on a per capita basis in leading world cities.
For the last two and a half years, the international real estate advisor says, London has held top spot, reflecting the strength of its economy and high demand for space from a wide variety of occupiers, but the impact of currency falls post EU referendum has made London very much more competitive on the world stage, reducing occupation costs in dollar terms by -11 per cent since the beginning of 2016.
Weakening financial sector office rents are behind local currency live-work costs levelling out in London during the first half of the year, but this translates into a -11 per cent reduction in total occupation costs when dollar – sterling currency movements are taken into account since December 2015.
Meanwhile, rents for both residential and office properties in New York rose slightly in the early part of the year and, although office rental growth is now weakening, overall accommodation costs, in local currency, rose 2 per cent in H1. The total annual cost per employee of living and working accommodation in New York is now put at $114,010 by Savills research. Hong Kong is just ahead of London’s $100,141 at $100,984.
For more information, click 08082016- All change since Brexit as New York takes top spot and 08082016- Trật tự đảo lộn kể từ sau Brexit, New York chiếm vị trí đầu bảng.
OTHER NEWS ON THE AUSCHAM WEBSITE
In the toolbar of this website, click on “NEWS” for the drop down menu which includes: