Article published on: 2008-03-18

ulgaria fell six spots to no 51 in a global ranking of the most expensive office occupancy costs in the world, with one square metre of prime space in Sofia business district standing at EUR 228 a year.

"Office Space Across the World 2008" is a global report by real estate services firm Cushman & Wakefield. It compares office occupancy costs in 215 key locations based in 54 countries around the world. The information for the Bulgarian office space market was provided by Forton International, Cushman & Wakefield associate offices here.

"A current lack of high quality space characterized the Bulgarian office market during 2007, when prime rental levels were unchanged as demand for high quality space remained high," the report pointed out.

Sofia remains the main target for occupier interest, although a number of secondary cities have started to see increased occupier activity.

Cushman & Wakefield forecasts that rental levels in Bulgaria should rise in 2008 as the lack of grade A space will remain a concern for occupiers and the development pipeline is still low.

All countries in the region record a fall in the ranking, except for Turkey, which accounts for the top three locations for the highest annual growth in office rents in all locations monitored, with Istanbul's Levent district, Turkey's most expensive location, in the No. 1 position.

Out of all 215 key locations covered in the report, 51% recorded positive annual growth, 32% were stable and only 17% experienced a decline.

London retained its title as having the most expensive office occupancy costs in the world, with one square metre of prime space in London's West End at EUR 2,277 a year, or USD 312 per square foot, with rents up 30% last year in local currency terms.

In second place is Hong Kong, at EUR 1,745, where rents were up 40% last year in local currency terms. 

Source: www.novinite.com and www.sofianewsagency.com