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Calgary Ranks In Global Top 10 For Office Rent Increases In 2006
14 Feb, 2007, Calgary
Calgary, February 14, 2007: Calgary has moved firmly onto the world stage as a hot market with an extraordinary 47 per cent increase in rental rates in 2006, placing it 28th on the list of the worlds most expensive office locations.
Office Space Across the World, a global report on office occupancy costs produced by real estate services firm Cushman & Wakefieldcompares office occupancy costs in 211 key locations in 51 countries around the world. Of those locations, 94 per cent recorded positive or stable annual growth and only a mere 6 per cent experienced a decline in rents.
Londons West End district retains its title as the worlds most expensive office location where one square metre of prime office space costs $246.17 per square foot, per year (all figures United States dollars) a year for companies to occupy. This is 35 per cent higher than the occupancy costs in Tokyo, at $182.88 psf, which overtook Hong Kong ($177.78 psf) to take second place.
Elaine Rossall, the reports author and Head of Business Space Research & Consultancy for Cushman & Wakefield in EMEA, says: We have seen the fastest level of growth in occupancy costs in many of the worlds top office locations since the upward turn of the property cycle in 2001. The driving force in most markets has been the financial services sector, which is in a buoyant mood given stock-market recovery, record levels of mergers and acquisitions, and more sophisticated global financial markets.!
"Calgary is experiencing growing pains -like many other great cities have had to deal with from time-to-time. As recently as the early 1990s Vancouver experienced tight markets and a deficit of infrastructure," said Chris Anderson, Vice President of Cushman & Wakefield LePage in Calgary. "This city is taking its place among the centres of global trade and commerce - and well all benefit from it in the long run."
The Indian city of Mumbai is the joint biggest riser in the ranking, together with Dublin. Mumbai rose six places to 5th, with annual occupancy costs at $120.15 per square foot.
The Irish capital of Dublin goes up six places to reach the number six position, with occupancy costs at $100.85 in the prime central districts of Dublin 2 and Dublin 4, both south of the river Liffey. With office take-up at a record high, rents went up by 43 per cent last year.
* The ranking is compiled from the location with the most expensive occupancy cost in each country monitored. Rents, which form the largest part of occupancy costs, are calculated on a net internal basis.
In terms of rental increases last year, the major component of office occupancy costs, the biggest rise in local currency terms was in Abu Dhabi in the United Arab Emirates, with rents going up 200 per cent. Rossall says, "Almost no space is currently available in the city as companies expand on the back of the current economic boom in the region."
India accounts for eight of the top ten locations in terms of rental growth. Fastest growth is seen in Mumbais central district of Worli (which also has the highest occupancy costs in Mumbai) and the Bandra Kurla Complex, in Mumbais suburbs. These two locations have seen rents increase 107 per cent and 93 per cent respectively.
Notes to Editors:Office Space Across the World is an annual publication by Cushman & Wakefield. Thisyears edition uses data collected by the firms offices around the world at the end ofDecember 2006.Cushman & Wakefield LePage is the Canadian operation of Cushman & Wakefield, the worlds largest privately owned commercial real estate services firm with more than 11,000 professionals in 201 offices in 55 countries. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. These solutions include helping clients to buy, sell, finance,
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