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Global Report Finds Hong Kong Home to Most Expensive Office Space

Global Report Finds Hong Kong Home to Most Expensive Office Space
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Office space has always been an important factor of business, but now, thanks to the rise of technology, that has drastically been altered.


The annual Office Space Across The World report showed that Hong Kong is now the world’s most expensive office location.


The report took a look at office occupancy costs across 215 office markets in 58 countries. Using propriety data, the report ranks occupancy costs per workstation and workplace densities for both newly developed offices and refurbished workspaces.


“As workstation costs rise, it’s crucial that employers get the most out of their workforce by providing work environments to help attract and retain the best talent in a globally competitive marketplace,” said report author Sophy Moffat of Research and Insight EMEA, Cushman and Wakefield. “There’s a tipping point when density is too high, or the amount of collaborative space is too low. Both can be a hindrance to people getting their work done. As competition heightens between spaces and cities, consideration of user experience and employee wellbeing is imperative.”


Technology has been changing the business landscape and the workplace itself for years. In 1992, the average individual workstation was approximately 80 square feet. In 2016, the average workstation size has shrunk to 39 square feet.


The New Straits Times adds that the average cost for operating an office space in Hong Kong has risen 5.5 cents to $27,432 per workstation per year, which is the highest across the global report.


“There is very strong demand for space in prime buildings by Chinese tenants in the banking and finance industries,” said John Siu, managing director of the report. “The companies are very generous in terms of expansion, and are paying a high unit rate for the space they are aiming at.”


Despite the high cost of office space, Chinese companies have been investing in more prime real estate throughout Hong Kong’s central business district.