Office rents on the cheap
The world’s most expensive office markets got a little cheaper this year. Bloomberg reported.
More than 130 cities worldwide had declines in rent expenses in the year ended Sept. 30, CB Richard Ellis Group Inc. said in a report released Tuesday. 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. Overall, rents fell an average 7.7 percent across 179 markets worldwide.
“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.”
The global recession and credit crisis are pushing down office rents as companies pare jobs. About 1.93 million job cuts have been announced worldwide this year, according to data compiled by Bloomberg. In the United States, the unemployment rate jumped to 10.2 percent in October, the highest level since 1983.
Click here to read the full story.