D.C. office rents hold steady
December 3, 2009 by Elizabeth Gilhuly · Leave a Comment
The world’s most expensive office markets have become significantly less expensive in the last year, but rents in the Washington metro region are holding steady, according to a quarterly report from CB Richard Ellis Group Inc.
by Jeff Clabaugh Staff Reporter
Washington Business Journal
Tuesday, December 1, 2009
Average office rents worldwide declined 7.7 percent in the fiscal year ending in September, according to the report, with rents down in 131 of the 179 major cities CB Richard Ellis tracks. Nearly 50 markets have seen double-digit declines, with rents in Kiev falling 64.6 percent in the last year, and rents in Singapore dropping 53.4 percent, the biggest declines globally.
Other large drops include a 41 percent decline in Hong Kong, a 39 percent decline in Abu Dhabi and a 35 percent decline in Moscow.
Boston and New York are both among the 10 largest declines, with Boston rents down 33.9 percent, rents in downtown New York down 30.2 percent and rents in Midtown New York down 29.7 percent.
By contrast, the report says rents in Washington’s central business district have risen 1 percent in the last year, with declines in suburban Washington of just 2.1 percent.
Washington ranks as the 50th most-expensive office rental market in the world, with average Class A rents of $51.74 per square foot.
New York retains the title of most expensive North American market, with Midtown rents of $68.93 per square foot, but New York ranks only 24th globally.
London’s West End, where rents have declined 17.8 percent in the last year, remains the world’s most expensive market, at an average of $184.85 per square foot.
Tokyo, Hong Kong, Moscow and Paris follow London among the world’s most expensive office rental markets.
