by Dan Rafter
Where are the most expensive cities to set up an office? Jones Lang LaSalle recently took a look at this question and came up with the 12 most expensive office locations. Only two of these locations, surprisingly enough, are in the United States, Menlo Park in Silicon Valley, which checks in at fifth place, and Fifth Avenue in midtown Manhattan, which came in at seventh place on the list.
Colin Dyer, president and chief executive officer of Jones Lang LaSalle, wrote about the list recently on his Influencer blog, finding some common themes among expensive office locations. The priciest spots are typically in the premier districts of global commerce and financial centers, well-connected internationally, home to high-value talent and high-net-worth tenants and the site of large numbers of global corporate headquarters.
Pricy office locations also tend to be located in supply-constrained areas, something that gives them an aura of exclusivity. They are close, too, to clients, travel, transportation and cultural and retail amenities.
St. James in London’s West End topped Jones Lang LaSalle’s list, boasting office rents of $194 a square foot. The Central area of Hong Kong — home to high-class hotels and luxury retail — comes in second, with office rents of $162 a square foot.
Finance Street in Beijing comes in third ($137 a square foot), with Rue du Rhone in Geneva coming in fourth ($116) and Menlo Park in Silicon Valley ($111) rounding out the top five.