Dublin has been ranked in the top 15 cities in the world with regard to decreases in office rental costs.
A study by international commercial property consultancy CBRE shows that Dublin is outside of the 50 most expensive global cities in which to rent office space.
A 5.9% decline in average office occupancy costs, coupled with an 8.4% fall in prime office rents in the past 12 months, has seen Dublin ranked 12th in the report’s ‘Top 15 Decreases’ list.
While Hong Kong ranks as the biggest decrease with office rents falling by nearly 18% this year, the city also ranks as the most expensive in which to rent commercial space; at a cost of $246.30 per square foot.
Central London, Tokyo, and Beijing rounded out the top five most expensive locations.
The report noted that “subdued demand” led to occupancy cost declines in Portugal and Ireland.
“The global office market recovery cooled over the past year, hampered by the ongoing European debt crisis, a deceleration of growth in emerging markets, and ubiquitous uncertainty created by the fiscal cliff in the US,” according to CBRE’s global chief economist, Raymond Torto.
However, he said that “tight market conditions, strong demand for high-quality space and low levels of new construction continue to drive up occupancy costs in many prime office markets across the globe”.
In July, despite reporting its best job-creation numbers in 10 years, IDA Ireland raised concerns over a future lack of available office space in Dublin.
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