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News Release

JLL’s Unprecedented Research Shows Office Rental Growth in the World’s Major Cities and the Drawing Power of These Cities


Hong KongLondon, BeijingNew York and Shanghai top the ranking of the most expensive premium office locations in the world, according to the first research of its kind conducted by JLL in the U.S., the Premium Office Rent Trackerwhich compares occupancy costs across the world’s 24 major cities.

To enable comparisons, the locations were divided into Established World Cities (such as New York, London and Tokyo), Emerging World Cities (like Shanghai, Moscow and Mumbai) and New World Cities (such as San FranciscoBoston and Toronto). Occupancy costs include net effective rent, service charges and property tax. No Brazilian city was included in the study.

The Premium Office Rent Tracker is, therefore, a key tool for evaluating city attraction and real growth in the premium office segment. According to the study, Hong Kong, London and New York also experience strong tenant demand combined with severe shortages of high quality space. For example, vacancy rates are as low as 1.2% in Hong Kong, 2.6% in London and 6.3% in New York.

Among Emerging World Cities, Beijing and Shanghai lead the competition, showing a remarkable capacity to absorb high levels of additional premium office space, supported by the growth of a new breed of domestic private companies. The Technology, Media and Telecommunications (TMT) sector is increasingly driving demand in the office market in New World Cities like San Francisco (7th), a city with strong technology credentials that is showing among the world’s fastest uplift in office occupation costs, followed by Boston (15th) and Sydney (20th).

Check out the world’s most expensive office locations, in US$/s.f./year:

No. 1 Hong Kong: US$ 262

No. 2 London: US$ 240

No. 3 Beijing: US$ 199

No. 4 New York: US$ 171

No. 5 Shanghai: US$ 136
Photo: Shutterstock/leungchopan​​