Source: Jones Lang LaSalle
The most expensive office market in the world is in London, specifically the St. James’s submarket in the West End, according to a new list from Jones Lang LaSalle. Interestingly, of the 12 cities on the list, only two are in the Americas — in New York City and Northern California’s Silicon Valley — while five each are in Europe and Asia.
According to Colin Dyer, president and CEO of Jones Lang LaSalle, expensive office locations are found in the premier financial or commerce districts of well-connected global cities, with lots of supply constraints and global headquarters. He notes:
“High-margin tenants are attracted to such high-cost space. The corporate tenants, law and consulting firms, venture capitalists, banks, hedge funds and other financial-services firms who call these places home clearly believe that the benefits outweigh the cost.”
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Loretta Clodfelter is a contributor to Institutional Real Estate, Inc.
