Debenham Tie Leung (DTZ) recently released a report based on an extensive survey that shows Bangkok as the fifth cheapest office space in the world. The report – DTZ’s eleventh annual ‘Global Office Occupancy Costs Survey 2008’ ranks Bangkok at 133rd in terms of costs per office workstation, with a cost of $2,840 per annum.
DTZ is a global real estate advisor who works to create leading edge property, investment and business solutions worldwide.
The survey puts Surayaba in Indonesia at the bottom of the chart with a cost of $1,550 p.a. Next is Manila at $1,670, Jakarta at $2,170, Tianjin at $2,830, follwed by Bangkok in fifth place.
The survey confirms Richard Ellis’ assessment that London is still the most expensive office market in the world, even discounting the West End. The DTZ report assesses London’s cost per workstation per annum at $27,540. Paris is second at $20,690, Central Tokyo at $18,430.
The cities with the highest annual growth in occupancy costs per workstation p.a. were Moscow – 95 percent, Singapore – 93 percent, Dubai – 74 percent, Manila – 73 percent, and Silicon Valley, California – 53 percent.
With one exception, markets that fell in cost were mostly in the United States: Lisbon â€“ dropping 24 percent, Tallahassee dropping 22 percent, Atlanta – dropping 20 percent, Los Angeles- down 19 percent and Las Vegas – down 8 percent.
DTZ is forecasting demand and costs to keep increasing in emerging Asian markets, Central and Eastern European markets and the Middle East, but expects the U.S. market to continue to decline.
As a matter of interest, the average working space across 137 districts worldwide was 162 square feet. Unsurprisingly, North America offers the most space at 234 square feet average, Central and Eastern Europe the lowest at 128 square feet. And just to make you all a little jealous, here is the view from Erik K Veland’s office window. He is very proud of it, but is not quoting costs per workstation per annum.