The Knight Frank Global Cities 2015 Report shows which cities are the most expensive in terms of commercial real-estate.
The Skyscraper Index sees London ranked the highest in terms of rent in Europe, with space costing US$2,400 per sq ft. It comes fourth out of the the ten most-expensive cities in the world.
1. Hong Kong US$6,330
2. Tokyo US$4,180
3. New York US$2,980
4. London US$2,400
5. San Francisco US$2,260
6. Singapore US$2,000
7. Sydney US$1,740
8. Shanghai US$1,670
9. Beijing US$1,600
10. Los Angeles US$1,230
Why is Hong Kong number one? Knight Frank says is it is because of three key factors:
- A restricted geographic area, which means building upwards, effectively converting air into land.
- Volatile office rents mean investors can potentially reap high rewards in the long-term.
- The “ego” appeal of the upper floors, with the panoramic views, delivers higher rents compared to the wider market.