By: Sumita Roy
Topping the charts is
St. James in West End, London. This area enjoys peerless accessibility,
luxury amenities and proximity to clients.
Annual rent received: $259.36 per square foot
Finance Street, Beijing
West Kowloon, Hong Kong
Connaught Place, New Delhi
Midtown Manhattan, New York
The world economy has shown signs of recovery but the cost
of office spaces has continued to rise over the last few years. United States
of America has seen highest growth rate of 4.6% in this sector. Next is Asia
Pacific that has seen a 3.2% growth rate. Europe, the Middle East and Africa have
seen a rise of 0.4%.
The rental rise is based on things like best locations for
global commerce and financial centers, connectivity, place for high
value talent, harbor of global corporate headquarters, supply to constrained
areas, proximity to clients, transportation, and convenience amenities and
facilities.
Let us take a look at the economically largest real estate commercial centers of the world:
St. James, London
Topping the charts is
St. James in West End, London. This area enjoys peerless accessibility,
luxury amenities and proximity to clients.Annual rent received: $259.36 per square foot
It harbors: British
multinational oil and gas company, BP plc. has its headquarters in this area;
along with finest wine merchants’ showroom, Berry Brothers and Rudd.
It used to
have the iconic English shoemaker Wildsmith, the first ever to create a loafer.
It also has the London Library in St. James Square; Jermyn Street, an upmarket
retail street; Pall Mall; Haymarket having Haymarket Theatre and Her Majesty’s
Theatre; and Carlton House Terrace.
Central, Hong Kong
It is the international financial center of the banking and finance community. The area has
first rate hotels, retail spaces and superlative transportation facilities.
Annual rent received:
$234.30 per square foot
It harbors: Bank
of China Tower; The Hong Kong and Shanghai Banking Corporation, a subsidiary of
HSBC; and head offices of Bank of East Asia and Hang Seng Bank.
Finance Street, Beijing
It was developed to attract financial
institutions of the highest tier. Many capital state-owned companies, global investment banks and
insurance firms have accepted this invitation.
Annual rent received:
$197.05 per square foot
It harbors: People's Bank of China, The People's Insurance Company of China, Commercial and
Industrial Bank of China, China Construction Bank, Communication Bank of China,
China Securities Regulatory Commission, China Banking Regulatory Commission,
and CITIC Industrial Bank and much more.
Central Business
District, Beijing
It is one of the most important international financial
centers in China. It is emerging as China’s media center, with the Beijing
Television station in the vicinity.
Annual rent received: $189.67 per square foot
It harbors: China World Trade Center Tower III; Beijing
Yentai Centre; Beijing TV Centre; Fortune Plaza; CCTV Headquarters; Jing Guang
Centre; China World Trade center.
West Kowloon, Hong Kong
It is situated within the Yau Tsim Mong District. It is primarily a stretch of land which was opened
to development in the late 20th century.
Annual rent received:
$170.42 per square foot.
It harbors: West
Kowloon Waterfront Promenade; West Kowloon Corridor; Western Harbour Crossing;
Austin Station of MTR; and International Commerce Centre, the current tallest
building in Hong Kong.
Moscow, Russia
It is the hub of
major political, economic, cultural and scientific activities in Russia and
Eurasia.
Annual rent received:
$165.05 per square foot
It harbors: Moscow
Kremlin; Red Square; Saint Basil’s Cathedral; Tretyakov Gallery; Kremlin
Armoury; Bolshoi Theatre; Cathedral of Christ the Saviour; Lenin’s Mausoleum; Gorky
Park; Novodevichy Convent; State Historical museum and much more.
Connaught Place, New Delhi
It is one of the largest financial, commercial and business
centers in India. You can rent commercial spaces in Connaught Place at a high value.
Annual rent received:
$156.65 per square foot
It harbors: the
very first Indian underground market Palika Bazaar. It has rows of restaurants, shops and hotels in
the vicinity. It is also a prime location of major cultural events.
Marunouchi Otemachi,
Tokyo
It is a commercial district of Tokyo. It is also Tokyo’s
financial district and the three of the country’s largest banks are headquartered
there.
Annual rent received: $154.67
per square foot
It harbors: The
Bank of Tokyo-Mitsubishi UFJ; Meiji Yasuda Life Insurance; Mitsubishi
Corporation; Mitsubishi Electric; Nippon Yusen; Tokio Marine Nichido; Hitachi;
Nikko Citigroup; Toyota Tsusho. There are many other offices present in the
area namely, Aeroméxico (Pacific Century Place Marunouchi); Citigroup; Nikko
Cordial; Nikko Citigroup; Banca Commerciale Italiana; Rabobank; JPMorgan Chase;
Bank Negara Indonesia; Bank of India; Bayerische Landes Bank; Bloomberg; BT
Asia Securities; First National Bank of Boston; KPMG; Latham & Watkins;
Mellon Bank; Morgan; Lewis & Bockius and many more.
City District, London
It is a leading area that entails high annual rent for office
spaces.
Annual rent received:
$142.71 per square foot
It harbors: Retail
shops; branded clothing stores such as Nicole Farhi and many renowned business
centers. It also has finest eateries and parks in the vicinity.
Paris, France
It is the capital and the most populous city of France. In
the present day, the economy of Paris is essentially a service economy, with business
and financial services generating nearly half of its GDP.
Annual rent received:
$122.10 per square foot
It harbors: It is
one of the largest economic centers in the world, with the sixth-largest gross
metropolitan product, according to a 2008 study by Pricewaterhouse Coopers. $723 billion
is the GDP it earns from urban agglomerations. It has law firms, banks and
corporate tenants in the vicinity.
Midtown Manhattan, New York
Commerce, especially large deparment stores/ chain stores,
are willing to pay a lot to be located in the inner core of Midtown Manhattan.
Annual rent received:
$120.65 per square foot
It harbors: It is
a hub of commercial activity. It has been recognized as one of the world’s most
expensive shopping streets. The headquarters of many places are situated there
like: 4Kids Entertainment, Barnes & Noble, Bloomberg L.P., Ernst &
Young, Calvin Klein, Cantor Fitzgerald, CBS Corporation, Citigroup,
Colgate-Palmolive, Cushman & Wakefield, Simon & Schuster, Six Flags,
TBWA Worldwide, Thomson Reuters, Time Warner, Time Warner Cable, Univision
Communications, Viacom and many more.
Pudong, Shanghai
It was transformed from an empty grassland to a bustling
financial district within a span of 20 years.
Annual rent received:
$119.50 per square feet
It harbors: It is
Shanghai’s Largest CBD and the home of 650 Chinese and international financial
institutions. The landmarks include Oriental Pearl Tower, Jin Mao Building,
Shanghai World Financial Center, Super Brand Mall, Shanghai IFC, Bank of China
Tower and Shanghai Tower.
Most of these locations are likely to remain in the top 12
category for quite a number of years, but the order may shift. High margin
tenants will continue to get attracted to such high cost spaces because of the feasibility of these places.
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