Move over Manhattan, Vancouver's downtown office occupancy costs are rising faster than those in New York City's financial district and everywhere else in North America.
Downtown Vancouver's prime office occupancy costs increased by 16.0% this year, representing the largest price increase in North America, followed by Manhattan and downtown Toronto.
Depite the increase, Vancouver's prime office space remains much less costly than in Midtown Manhattan, where the top office spaces lease for US $183 per square foot, compared with US $47.95 per square foot (C$63) in Class A downtown Vancouver towers. In downtown Toronto, such top office space leases for US $56.27 (C$74) per square foot.
Although prices have escalated, downtown Vancouver is still not in the top most expensive cities globally and trails downtown Toronto.
Vancouver's rental rates are expected to continue to increase as demand shows little sign of retreat as there is no new supply expected until 2021.
Central Hong Kong remained the most expensive office market in the world, with overall prime occupancy cost of US $307 per square foot, follow by London's West End at US $235, Beijings Finance Street at US $201, Hong Kong Kowloon at US $190 and Beijing's Central Business District at US $189.