Brazil Surges, US Falls in Latest List of Most Expensive Office Markets

Brazil’s growing economy pushed office space prices higher as Rio de Janeiro and Sao Paolo entered the top 10 most expensive markets. On the opposite end of the spectrum, traditionally strong domestic markets like Midtown Manhattan and Washington DC continued their slump with neither city in the top 25.
London’s West End remained the most expensive market in the world by a wide margin over the next closest city, Hong Kong. Prices for the West End increased nearly $11 compared to the previous report that was released in May.
After London and Hong Kong, the next closest city was Tokyo with an astounding gap of $26 and rounding out the top five are Mumbai and Moscow. The last two spots in the top 10 were Sao Paolo and Rio de Janeiro which were boosted by the Brazil’s economic development and increasing demand as financial centers. Each city posted double digit gains in office space prices between May and November.
The United States only held two of the top fifty spots with Midtown Manhattan at 26 and Washington, DC at 46. The lack of a domestic presence is often a surprise to people Buying 5 Year Old House who are not familiar with the global office environment but growing international markets often don’t have the same availability of space and thus higher prices.
To get an idea of how quickly some of these markets are growing, consider the fact that Mumbai, the fourth most expensive market, will have added nearly Virtual Furniture Free 30 million square feet of space between 2010 and 2011. Manhattan, which already has an adequate supply, isn’t projected to add any space in 2011.

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