Office space in Hong Kong cost an estimated US$228 per square foot per year including rent and fit-out costs, according to the study, which tracked prime offices in 40 markets around the world in the first quarter. The cost of office space in Hong Kong declined 1.1 per cent compared with the fourth quarter, Savills said on Wednesday.
For a prime office tenant in London’s West End, occupancy costs averaged US$299 per square foot per year, while tenants in third-ranked Midtown in New York City paid US$207, the study said.
Hong Kong was the most expensive city in the world for office costs in the second quarter of 2022 in the Savills research, at US$250.56 per square foot per year. Hong Kong office rents have declined by 40 per cent since 2019, according to CBRE, as demand failed to keep up with growing supply. Last year, the segment’s rents declined by 6.3 per cent.
“Globally, rental growth for prime office space accelerated in the first quarter of 2025, increasing on average by 0.6 per cent,” Savills said. “Fit-out costs also rose by 0.7 per cent during the same period, following a 0.2 per cent increase in the fourth quarter of 2024, reflecting occupiers’ ongoing demand for high-quality office environments.”
The Savills study tracks offices commanding the highest 5 per cent to 10 per cent of rents in each specific market. The annual all-in occupancy cost represents real-time transaction terms for 20,000 sq ft of usable space based on a basket of the top five most expensive properties in each market.
