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On November 2007, CB Richard Ellis was acknowledged as the number one Brokerage Firm in the commercial real estate market. CB Richard Ellis Group, Inc. has been added to the S&P 500 Index, and is the world’s largest commercial real estate services firm listed in this rating.

CB Richard Ellis Group, Inc performs semi-annual Global Market Rents survey. London’s West End is once again the world’s most expensive office market. With a near-doubling of occupancy costs, Moscow climbed to second place at $2505.3 (an occupancy cost in US$/sq.m./annum used throughout this release).

Amongst the most expensive markets, Singapore and Dubai are new entries to the top 10. Singapore ranked ninth with an occupancy cost of $11499, while Dubai debuted at number 10 with an occupancy cost of $1382.6. Midtown Manhattan was still the costliest market in North America, at $1113.2, and ranked number 13 worldwide.

The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months. Ending March 31, 2008. Tokyo’s Inner Central Five Wards, Mumbai’s Nariman Point and Tokyo’s Outer Central Five Wards rounded out the top five most expensive markets.

“Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation,” said Dr. Raymond Torto, CBRE’s Global Chief Economist. “These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking.”

Ho Chi Minh City had the fastest-growing occupancy costs during this period, up 94%. Moscow was not far behind at 93%, followed by Singapore at 86%. Fastest growing occupancy rates are presented in Nicosia, Oslo, Tel-Aviv and Dubai. Overall, EMEA (Europe, Middle East and Africa) dominated the list of markets with the fastest growing occupancy costs. Worldwide, 88% of the 173 office markets monitored posted higher occupancy costs.

Asia Pacific
Ho Chi Minh City jumped from 45th to 23rd as the most expensive increase globally, with occupancy costs (including utility services and taxes) rising to $923.6 or 94%. Occupancy costs in Tokyo’s Outer Central Five Wards increased to $1886.8. Asia Pacific had 11 markets among the 50 with the fastest growing occupancy costs, paced by Singapore (86%) and Mumbai (41%).

Europe
At $3223.1, London’s West End remained the world’s most expensive office market. Occupancy costs in that market are 29% higher than Moscow, which rose four places to second. Occupancy costs in the Russian capital rose to $2500.3, the world’s second-most expensive office market due to the imbalance of supply and demand. London’s West End occupancy costs are 82% more than the City of London’s $1766.6 occupancy cost. In Europe, occupancy costs grew fastest in Moscow, with a 93% increase, and Oslo, Norway, with a 58% increase.

Americas
Four North American cities are among the world’s Top 50 most expensive office markets: Midtown Manhattan (13th at $1112.9); Calgary Central Business District (CBD) (42nd at $713.1); Toronto CBD (47th at $671.9); and suburban Los Angeles (48th at $667.8). Rio de Janeiro rose to $802.7 (32nd), while São Paulo increased seven spots to 35th at $768.4. North America totaled 16 of the top 50 markets with the fastest growing occupancy costs. The fastest gains were recorded by Miami (29%), Seattle (26%), Houston (25%) and Panama City (28%).


Top 50 Most Expensive Office Markets as of May 2008

 Source: CBRE Research