Most of we New Yorkers assume that our city is probably the most expensive place in the world. However, with respect to office space, this is not the case. New York is actually the fourth most expensive city in the world. On a worldwide basis, ahead of New York, are Hong Kong, London, and Beijing. Not surprisingly, New York retains the title of “Most Expensive City in the United States.”
There are many factors that affect the comparative rate for office rents worldwide. For example, each city has costs on top of the base rent. Tenants in New York City have the additional costs of electricity, operating expenses, and real estate taxes which are added to the base rent. These additional expenses will increase the total office rent paid by about 15%.
Closely following New York in the global ranking for office rent are San Francisco, ranked at seventh, and Washington, D.C., ranked at twelfth.
Accordingly, we New Yorkers can revel in the fact that, when compared to other international cities, we are a bargain!