According to a CBRE report released in June, the top ten most expensive office markets are Hong Kong Central, London’s West End and Beijing’s Finance Street, followed by Beijing’s Jianguomen CBD, New Delhi, Hong Kong’s Kowloon, Moscow, the City of London and New York’s Midtown Manhattan.
London, Hong Kong and Beijing all have two business districts in the premium office market top ten list. These destinations are home to many large corporations, who require centrally located headquarters and are prepared to spend a premium for obtaining a prestigious address with excellent transport.
Hong Kong & China
Six of the most expensive office markets are located in the Asia Pacific region. The report notes that a lack of suitable Class A office space in this region is a major contributing factor in driving up demand and leading to premium office prices.
However, there are a number of Class A towers currently under construction in these prime office areas, which will hopefully alleviate the situation. Let’s take a look at some of the upcoming commercial developments across Hong Kong and Beijing.
- Zhongguo Zun(Beijing)
Construction began on this building in 2012, and is projected to finish in 2018. This 108 storey commercial office tower will also be the tallest tower in the city once it is completed.
- Wangjing SOHO T1 (Beijing)
This LEED-certified landmark building will be opened next year, and will consist of three unique towers designed for use as commercial office space. With a 10 metre high lobby and stylish monochrome interiors, this office complex is also situated near to public transportation, the Capital International Airport and the Olympic village.
- Manulife Financial Corp Headquarters (Hong Kong)
Earlier this year, Canada’s biggest insurance company paid the second-highest price on record for a Hong Kong office tower in Kowloon East, which will be redeveloped as the company’s headquarters and is set to open in 2015.
- Partners Group Tower (Hong Kong)
Partners Group, a global private markets investment manager, bought a 13-storey warehouse in Kowloon East in April this year. The warehouse will be converted into a modern Class A office building with a BEAM Plus rating, suitable for big businesses looking for an alternative to Kowloon Central.
- Lize Financial District (Beijing)
Plans for the development of the new financial district for Beijing, the Lize Financial District project, are currently in the works, with British architecture firm DOS Architects on board to design the massive hotel, office and housing scheme. The proposed development will provide between eight million and 9.5 million square meters of new floor space, with 80 skyscrapers to house financial institutions and multinational corporations.
What about London?
More limited development during the economic recession has led to a restricted supply and increased cost when it comes to prime office space in London’s West End. As the CBRE report indicated, London’s West End is now the second costliest office market in the world.
Much like Hong Kong and Beijing, however, there are also a number of commercial office towers currently being built close by in the city of London. Among these is The Leadenhall Building, affectionately known as “The Cheesegrater”, due to the particular design of its exterior. The tower, which will stand at 224 metres when completed, is set to open in mid-2014. 100 Bishopsgate, meanwhile, will consist of two buildings – the 40-storey Tower 1 will provide 32 floors of office space, whilst the second 7-storey building will contain five floors of office space, in addition to a top-class restaurant opening onto the public plaza.
20 Fenchurch, nicknamed “The Walkie Talkie” is set for completion in 2014, at 160m with 36 storeys. The building has come under the spotlight lately, quite literally, for focusing the reflection of the sun into a powerful beam that melted a Jaguar parked beneath it. Finally, 25 Churchill Place, located in Canary Wharf, is nearing completion, and will be one of the most energy-efficient buildings on the Canary Wharf Estate. Features include a green roof, solar panels, air-conditioning equipment that recycles the energy from exhaust air, and elevators that store and reuse energy elsewhere in the building.
Instant can help you and your business find the perfect Class A office space across the world. Our office consultants will suggest options to suit your business requirements, whether you’re looking for a prestigious address, convenient transport links or the very latest in technological amenities.