Hong Kong Office Space Nearly Full
The small amount of office space currently available in Hong Kong has driven up prices according to commercial property firm Colliers, with a new report once again identifying the city as the most expensive place in the world in which to rent office space.
According to the report only 3.7% of the cityΓÇÖs office space supply is currently vacant, establishing it as having the lowest vacancy rate throughout Asia and helping to drive the price of Grade A office space up to an average of $213.70 per square foot at the close of June 2011.
The report also predicts that the limited supply of office space is unlikely to change anytime soon, with only around 400,000 sq. ft. of new office space in Hong Kong listed as being under construction as of June 2011. While this new space looks likely to quickly attract attention in what is a crowded market, the delivery of over 31 million sq. ft. in nearby Guangzhou could lead businesses to consider jumping across the border where a cheaper and less competitive office market exists.
Regardless of the predictions that a slowdown in the commercial property market will take place over the next 12 months, Colliers predicted that Hong Kong looked likely to retain its position as the worldΓÇÖs premium priced office location ΓÇô despite acknowledging that many firms have shifted to a strategy of cost saving.
On the other side of the World LondonΓÇÖs West End was revealed as the second most expensive place in which to rent office space, followed by Paris, Tokyo and then the City of London.
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