Publication of JLL’s Premium Office Rent Tracker research report covering 127 office markets and submarkets in 112 cities, finds a high number of premium office buildings surveyed – 84% – boast an environmental sustainability certification such as LEED or BREEAM, widely used benchmarks for green buildings.
In high-end markets, this number climbs to 100% – thus underscoring the shift toward environmental consciousness by both landlords who sought the certifications and tenants who chose to occupy green buildings.
The Tracker provides a useful barometer of relative occupancy costs and is JLL’s benchmark view on the best achievable office rent in the world’s top markets. It highlights the most expensive office locations and markets that offer the best value globally and by region, as well as key trends to watch.
Percentage of markets whose most premium building has…
|a SUSTAINABILITY certification||100%||89%||76%||84%|
|a WELLNESS certification||8%||16%||12%||13%|
New York catches up with Hong Kong for the top position in the global ranking
- New York-Midtown’s premium office costs have increased since 2020 to now tie with Hong Kong-Central for the world’s most expensive office market.
Key gateway markets see a widening rental gap between the CBD and decentralized submarkets
- In 2021 the rental gap between core and decentralized submarkets has widened for the key gateway cities – Hong Kong, New York, Beijing and Tokyo – as core business districts continued to attract healthy interest from corporate occupiers.
The majority of premium office buildings are certified in sustainability
- 84% of the premium office buildings surveyed have a certification in environmental sustainability, such as LEED or BREEAM. For spaces in the high-end markets, the proportion of sustainability-certified buildings rises to 100%.
“While urban cores struggled to remain relevant during the depths of the pandemic, due to lockdowns and a shift to remote work, many amenity-rich central business districts are now rebounding with new energy and purpose,” notes Jeremy Kelly, Lead Director, Global Cities Research at JLL. “The resilience of rents in premium buildings demonstrate the fortitude and importance of urban core locations to companies.”