Ho Chi Minh City Sets Pace For Fastest Occupancy Cost Growth
LOS ANGELES, CA- London's West End (photo at middle left) is once again the world's most expensive office market, while rapidly-rising Moscow climbed to second place, according to CB Richard Ellis Group, Inc. (CBRE) Research's semi-annual Global Market Rents survey.
"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation," said Dr. Raymond Torto, (top right photo) CBRE's Global Chief Economist. "These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking."
Ho Chi Minh City (photo at right, showing Downtown and Saigon River) had the fastest-growing occupancy costs during this period, up 94%. Moscow was not far behind at 93%, followed by Singapore at 86%.
Among the most expensive markets, Singapore and Dubai were newcomers to the top 10.