A recently published research report from real estate consultancy Cushman and Wakefield showed Beijing office rents surging 73% in 2011 with rates in Shanghai increasing by 19.7% over the year.
The Cushman report, which compared office rental rates worldwide saw rates in greater China continuing to be among the world’s most expensive, with Hong Kong now outranking New York and Tokyo as the spendiest spot to set up some desks and put down some carpet tile.
For Beijing, Cushman saw office rental rates in the fourth quarter of 2011 for grade A space standing at RMB 507/sqm/month (RMB 16.6/sqm/day for us Shanghainese) an increase of 73 percent over the same period of 2010. Vacancy rates in the nation’s capital were seen at 2.7 percent — a drop of 4.3% compared to 2010.
In Shanghai, the consultancy estimated that average rents for grade A space in the fourth quarter of 2011 were RMB 414/sqm/month (RMB 13.57/sqm/day in Shanghainese), an increase of a mere 19.7 percent over the previous year. Cushman indicated that vacancies in Shanghai accounted for only 4.8 percent of total grade A space, a decrease of 3.2 percent compared to the previous year.
All of Cushman’s rental rate numbers were based on net effective rentals.
For those of you interested in seeing the reports in detail, here are links to the the reports on RightSite:
Also, we have uploaded Cushman’s office and retail research reports for Beijing, Shanghai, Chengdu, Guangzhou and Shenzhen to RightSite, and you may view them on our research report page here.
[…] point to consider is the wide variation between Jones Lang’s numbers and the findings of an essentially parallel report from Cushman and Wakefield which we reported on in Mingtiandi a few w…. Where Jones Lang saw annual growth in grade A office rents of 41.4 percent, Cushman concluded that […]