It is no secret that the price of office space responds to demand for it, and that certain world cities have sky-high demand for offices. Thus some of the world’s business capitals have seen major shifts in their office space landscape as the economy has crashed and recovered in recent years.
While no overriding trends have dictated office space demand and availability worldwide, certain cities have seen dramatic changes. Here is a survey of office space demand and activity in world cities from recent years:
-Beijing, China’s densely populated, smog-ridden capital city, has seen office space prices skyrocket. The city’s average office price now exceeds that of two of the world’s longtime business strongholds, Tokyo and New York! Each square meter of office space in Beijing’s Central Business District costs an average of $1412 per year. Better start saving up!
-Surprisingly, the city with the most quickly decreasing office space prices in the U.S. is Chattanooga, Tennessee. As demand has dropped in the city and vacant offices have drifted out of usable condition, rents have fallen a shade under one percent per year despite a worldwide trend of booming office space demand. Perhaps a place for entrepreneurs on a budget to consider!
-As mentioned above, New York City and London are two of the most competitive cities to seek and build office space in. While London has often threatened to outstrip New York as the Western world’s business and finance capital, New York is currently building new office spaces at a quicker pace than Britain’s capital is.
-Perhaps the glitziest office project in Manhattan, New York’s business borough, is Related’s 30 Hudson Yards, which will be Time Warner’s hew environs. The building boasts a whopping 2.6 million square feet of space. Other major Manhattan undertakings include 3 World Trade Center, One Sono Square, and 7 Bryant Park. All in all, the Midtown district, Midtown West, and downtown areas of Manhattan figure to see an expansion to the tune of 17 million combined square feet of office space between 2015 and 2018 thus far.
-London, on the other hand, projects to gain 14 million square feet of office space from 2015 to 2018. This figure is middling compared to some of the world’s other designated “finance capitals,” but London is not lacking for arrivals of new businesses and jobs, so its demand figures to rise!
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