Offices rents increased
Office rents up to € 45 per sq. m. / per month in Luxembourg. (L'essentiel)
Office rents in Luxembourg City’s financial district have moved up from € 40 to 45 per sq. m. / per month in 2013, according to an international study.
London’s West End still hosts the world’s most expensive office market, according to a research that was just published by Cushman & Wakefield. West End keeps first place on the ranking of the “Office Space across the World” report, being followed in second place by Hong Kong, whose leadership was overtaken by the British capital already last year.
Offices in London’s West End are three times more expensive than in Luxembourg City with the capital of the Grand Duchy having moved up by one place to currently sit in twelfth. New York’s Midtown (Manhattan) is ranked sixth, while Paris follows in ninth place, with both cities having moved up the rankings by one place year on year. Brussels’ European District, on the other hand, dropped down by three spots and currently sits in 38th place.
Office rents have increased by 3% worldwide
Rents for office spaces have increased by 3% year on year worldwide, with that same figure standing at +5% for London. Europe has followed that general trend also registering an increase by 3% over the last 12 months. As for the Grand Duchy, the costs have moved up from € 40 to 45 per sq. m. / month which accounts for € 777 per sq. m. / per year by taking into account rent, rental charges and other taxes. The same figure stands at € 393 per sq. m. / per year in Brussels and at € 2,122 in London’s West End respectively.
“Compared to Brussels, Luxembourg office market is experiencing a very low vacancy, up to 2% for the main neighborhoods such as the central business district (CBD) and the Kirchberg, thereby reflecting a low supply. Since office demand remains stable, the recurrence of lease agreements signed for € 45 per sq. m. /month does not come as a surprise” explains Sébastien Spoiler, who is responsible for Belgium’s and Luxembourg’s office market at Cushman & Wakefield, a company that is headquartered in London’s West End and New York’s Midtown.