Tech hubs make up half of the 20 most expensive office markets around the world, according to JLL’s latest Premium Office Rent Tracker report.
Although Hong Kong came top of the list with total occupancy costs of $323 per sq ft, the next four most expensive markets all feature a strong tech presence.
Asia is the other dominant force on the list, making up 11 of the top 20. Markets in greater China alone account for seven of the 10 most expensive cities in Asia.
But Asia also includes the cheapest markets in the report, including Kuala Lumpur, where the average occupancy cost of $30 per sq ft is just 9% of Hong Kong’s costs.
Europe is similarly on the cheaper end of the global market, with London’s West End representing the region’s sole top 10 position.
The report suggested that established tech hubs now face competition from more affordable emerging areas because of the cost difference. These include places such as Amsterdam, Seattle, Berlin and Dublin.
Hannah Dwyer, divisional director and head of research at JLL Ireland, said: “The attractiveness of Dublin does not just come down to cost, and Dublin has a competitive backdrop for corporates looking to move here, such as a 12.5% tax rate, a strong talent base, a native English-speaking population, an existing technological infrastructure and a solid track-record of global corporates already in the city.”
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