Cities in Asia-Pacific have seen the fastest rental growth for offices in skyscrapers

The upper floors in Hong Kong’s towers continue to command the highest skyscraper office rents in the world as at Q2 2016, followed by high rise buildings New York City. As both cities have their core CBD on an island, the supply of land is highly constrained, so office rents are high. The long-term commercial success of both Hong Kong and New York also helps explain the high rents commanded by their tower buildings.

However, rents for Shanghai skyscraper offices grew the fastest among the cities surveyed, at 7.6% in the six months to June 2016, with Sydney in second place at 6.6%, and Hong Kong third with growth of 5.9%. Of the top ten cities ranked by rental growth, seven are in the Asia-Pacific region. Of the North American cities, Toronto saw the highest rental growth at 4.9%. London remains the most expensive city to rent an office in a tower in Europe, although rents were unchanged in the first half of 2016, albeit at a record level for the U.K. capital.