A lack of top quality office space in the West End of London has forced prices up above its rival Hong Kong. During last year prime rent rose by 5 per cent to £110 per square foot, according to Cushman and Wakefield, which is evidence of the leading position that London holds as a world business hub. If you add the service charges and business rates the figure rises to around £164 ($271.61) per square foot per year.
A survey carried out by the estate agent, Cushman and Wakefield shows that London comfortably outstrips the office rent prices of other big cities. Hong Kong central is currently $183.32, whilst Moscow central business district is just $139.80. Beijing and Tokyo hold fourth and fifth places with total occupancy costs of $131.48 and $128.34.
Sovereign wealth funds are looking at areas such as Mayfair and St James, which are already heavily populated by private equity groups. James Young, the head of Europe, Middle East and Africa at Cushman, said “London is a great draw for companies from the US and Asia that want a stepping stone into Europe and, as the UK economy recovers, this demand is growing.”
During the middle of last year, Nobel, an oil-engineering group took space at Devonshire House, with rent at £120 per square foot. This was closely followed in September by Temasek, of Singapore, who relocated to offices in King Street, and are understood to be paying £125 per square foot.
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