Office prices on the rise

Beirut offices rental fees are 22nd most expensive worldwide, second highest in MENA: report

Beirut was rated as the 22nd most expensive office location worldwide in 2012, according to a report by global firm Cushman & Wakefield. The report, titled ‘Office Spaces Across the World 2012’, named Beirut as the second most expensive city in terms of office rentals in the Middle East and North Africa, behind the UAE.

In 2011 Beirut was positioned as the 28th most expensive office location. It was ranked as the 31st most expensive office location in 2010.

According to the report, the annual rental fee of each square meter of office space in Beirut was around $662 in 2011. The report said that Beirut has had a rental growth rate of 13 percent during 2011. It said that Beirut was one of the few countries in the Middle East region which had seen a positive rental growth during 2011.

“Political unrest had a slowing effect in Beirut, with activity largely comprised of consolidations and relocations. However, a lack of good quality supply helped rents to appreciate in 2011,” the report said.

The report expected the growth trend to be sustainable during the year 2012. “The outlook for 2012 is for similar conditions to remain, with demand for smaller floor-plates anticipated to rise in order to keep costs minimal,” it said.

Globally, Hong Kong was ranked as the most expensive city in the world in terms of annual per sqm occupancy cost, which stood at $2,726/sqm, followed by London $2,662/sqm/year), Tokyo ($2,200/sqm/year), and Moscow ($1,645/sqm/year).