The world’s most expensive office markets got a little cheaper this year.
CB Richard Ellis Group Inc. said in a report yesterday that almost 50 cities reported declines of more than 10 percent. Rental costs fell about 30 percent in Midtown Manhattan, 53 percent in Singapore and 41 percent in central Hong Kong. New York offices averaged $68.93 a square foot at the end of September.
“The places that went up the fastest and highest also came down the fastest and at greater depth,” said Raymond Torto, Boston-based chief economist for CB Richard Ellis, the largest publicly traded broker. “You party Saturday night and you pay for it on Sunday morning. That’s true across the globe.”
New York’s decline paralleled a drop in financial services employment, he said.
Midtown Manhattan came in 24th in the survey, down from 15th last year. It remains the most expensive U.S. office market.
London’s West End district retained its position as the world’s most expensive office location, even though prices per square foot there dropped 26 percent.