CHINA TOPIX

11/04/2024 10:54:50 pm

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Beijing Has World's Third Most Expensive Office Spaces

Beijing Business District

A worker rides past a poster showing Beijing's central business district outside a construction site in Beijing, December 29, 2014. REUTERS/Jason Lee

Beijing's Finance Street and Central Business District (CBD) are among the world's top 10 areas with the most expensive office spaces, the latest CBRE Research's biannual Global Prime Occupancy Costs survey showed.

Office rentals in Beijing's Finance Street cost US $198 per square foot, ranking the area as the third most expensive in the world. Beijing's CBD ranked fourth with its US $189 per square foot office space rental, the survey revealed.

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China may be experiencing a cooling property market but office rentals in the capital city continue to be one of the world's most expensive, analysts said. Beijing has been offering incentives and tax benefits to entice investors to set up offices or headquarters in the capital.

Based on the survey, London's West End district has the world's most expensive office spaces at US $274 per square foot, followed by Hong Kong Central, which costs US $251 per square foot to occupy.

The latest survey also showed that seven of the top 10 places with the most expensive office spaces are located in Asia. New Delhi's Connaught Place and Tokyo's Marunouchi Otemachi also make it to the top 10 of the list.

The biannual Global Prime Occupancy Costs survey by CBRE Research tracks tracks occupancy costs for prime office space in 126 markets around the globe.

Meanwhile, the latest Fortune Global 500 list showed that 51 of the Global 500 firms are headquartered in Beijing.

The 2014 figure was higher than in 2013, where 48 of the world's top 500 enterprises were headquartered in the Chinese capital.

Most of the Global 500 companies headquartered in Beijing are situated in the downtown area, mainly in Chaoyang, Haidian and the west and east city districts.

Beijing offers benefits and advantages to companies that establish their headquarters there.

In 2013, Beijing stood out to have the highest number of the headquarters of the world's leading companies with 48, surpassing Tokyo's 47.

Beijing currently dangles US $1.6 million worth of subsidies to newly-registered corporate headquarters and those moving to the city from other cities as part of its effort to encourage international firms.

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