The Savills Prime Office Cost (SPOC) Index presents a quarterly snapshot of occupancy costs for prime office space throughout the world, as provided by our expert, local tenant representation professionals.
Hong Kong remains the most expensive prime office market in the world for occupiers.
Global occupancy cost volatility increased during the third quarter of 2017 as compared to a stable second quarter. Face rent increases drove up recorded costs in Paris, Frankfurt, Amsterdam, and Brussels as “post- Brexit” requirements materialized and leases were executed by occupiers in these markets. A stronger Euro also helped increase occupancy costs as recorded by our index.
Across the Americas, a weaker dollar impacted recorded occupancy expenses in Toronto while the US markets continued to trend in favour of occupiers with the exception of San Francisco.
Asian markets were less volatile, but continue to occupy 6 of the Top 10 positions in our index making the region the most expensive for global companies. Markets showed no discernible uniformity across the region. Tokyo, Singapore, and Seoul all recorded increases in occupancy costs as Mumbai and Shanghai recorded decreases. Overall, the impact of exchange rate volatility on recorded occupancy costs for the region was relatively low as compared to prior quarters.
For more information, click 14112017 – Savills announces Prime Office Index Q3 2017- EN
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