Beaches and bikinis aren’t the only hot attractions in Rio de Janeiro.
Office space in Brazil’s second-largest city is also in high demand, pushing Rio’s occupancy cost to $120 a square foot — moving the South American city past New York as having the most expensive commercial real estate occupancy costs in the Americas region.
Rio is ranked No. 4 worldwide, up from No. 13 last year, according a global real estate report by Cushman & Wakefield, expected to be released today. Total occupancy costs take into account service charges and local taxes to allow direct comparison between countries.
Manhattan’s Midtown, the city’s most pricey location, fell one spot on the global ranking to No. 5. Office rents rose 10 percent over the past year to an average $115 a square foot.
On the global front, Asian cities are now firmly entrenched in the top ranks.
“This is in contrast to 10 to 15 years ago, where the most expensive cities were generally found in Western Europe and North America, and highlights the recent growth and development within an increasing number of Asian markets over the last few years,” Cushman & Wakefield’s Barrie David said in a statement.
Hong Kong occupancy costs bounced up by 51 percent to $241 a square foot — leap-frogging it over last year’s No. 1 and No. 2, respectively, Tokyo and London. Hong Kong is now the world’s most expensive office location.
London continued to be Europe’s most expensive city for commercial rents, with prices outpacing other cities on the continent by jumping 27 percent in its West End, bringing occupancy costs to $233 a square foot. England’s capital ranked No. 2 globally. Overall, rents in the city rose 25 percent.
Tokyo’s costs of $166 a square foot reflect a drop of 11 percent as the Asian city became a “tenant’s market,” causing the former No. 1 to fall two spots.
Beijing, with its lowest vacancy rate in a decade, paralleled Hong Kong’s market as corporate expansions and new business demand in both Asian cities outpaced Class A availabilities. Its ranking and occupancy costs were not available at press time.
The five cities rounding out the top 10 are: Mumbai at $114 a square foot; Moscow at $108 a square foot; Paris at $104 a square foot; Zurich at $98 a square foot and Milan with occupancy costs of $91 a square foot.
