Premium Office Rent Tracker, December 2020
JLL’s latest Premium Office Rent Tracker compares occupancy costs for premium office buildings across the world’s leading real estate markets.
JLL’s Premium Office Rent Tracker compares occupancy costs for premium office buildings across the world’s leading real estate markets. This sixth edition includes 100 office markets and submarkets across 86 cities and is JLL’s benchmark view on the best achievable office rent in the world’s top office markets.
This research provides a useful barometer of relative occupancy costs. 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.
Premium office rents are showing signs of greater resiliency than the broader Grade A market
- Rents for premium buildings have fallen in major office markets over the past year by an average of 3.0% in local currency terms. This compares to a decline of 5.2% in net effective rents for the broader Grade A office market.
- This provides tentative evidence that premium space is more resilient, supporting a flight to quality as office workplace requirements adjust to the ‘new normal’.
Premium projects in Brussels and Luxembourg trade higher
- At city level rents were globally stable in Brussels and Luxembourg compared to last year, meanwhile premium buildings trade at higher values, illustrating the focus of occupiers to the best quality.
- This flight to quality was particularly visible in the North district of Brussels, that recorded a 22% increase in rents for premium projects.
- Similarly in Luxembourg, rents increased by 6% in the Ban de Gasperich, which is the city’s new premium banking & finance area.