1、Global Premium Office Rent TrackerGlobal Research|December Global Premium Office Rent Tracker|December 20222Green building certification now a de facto requirement of premium officesFlight to quality extends to environmental sustainability features,with green building certification now a de facto re

2、quirement of premium office space:87%of premium office buildings in our survey have a certification in environmental sustainability,such as LEED,BREEAM or NABERS,up from 84%last year.For those buildings in high-end markets,the proportion of sustainability-certified buildings rises to 95%.Similarly,a

3、 larger proportion(21%vs 13%last year)of premium office buildings surveyed globally in 2022 have a health and wellness-related certification,such as WELL or Fitwel.Key Trends1 As measured in local currency2 JLL Future of Work Survey,July 2022 Flight to quality evident as premium rents grow by 4.8%ov

4、er the year1 The flight to quality seen across office markets globally is further evidenced by our latest Premium Rent Office Tracker(PORT).Premium office rents grew by 4.8%over the year,highlighting ongoing demand for top-quality product at a time when many companies are reassessing their office ne

5、eds.With 77%of corporate real estate professionals agreeing that investing in quality space is more important than increasing space,upward pressure on rents for premium space is likely to continue.2 The trend was especially apparent across EMEA,where average rental growth reached 10.6%over the year.

6、2Global Premium Office Rent Tracker|December 20223JLLHong Kong retains top position in the global rankings Hong Kong Centrals premium rents remained relatively stable during 2022,which helped it to retain its position as the worlds most expensive premium office market.New York Midtown came second in

7、 the global rankings.Interestingly,New York Midtowns premium rent is almost three times the level of its grade A rent;this is the highest multiple recorded across all the markets in our survey and further supports the willingness of tenants to pay for the best-quality space.London West End,Beijing F

8、inance Street and Silicon Valley round off the Global Top 5.Finance dominates demand in high-end marketsA diverse array of tenants occupy premium office space.The flight to quality by banking and finance companies is particularly evident in high-end markets,accounting for 72%of demand,up from 43%las

9、t year.Meanwhile,technology firms have continued to play a key role in driving premium office occupancy costs,especially in the more affordable cities,along with professional and business services firms.Strong dollar boosts the rankings of U.S.citiesThe dollar appreciated considerably in value again

10、st most other global currencies during 2022 as the Fed aggressively raised interest rates.This boosted the positions of U.S.cities in the global rankings and pushed down cities in Europe and parts of Asia.The Middle Eastern hubs of Dubai,Riyadh and Abu Dhabi saw significant gains in occupancy costs

11、over the year.In contrast,Tokyos major submarkets fell considerably down the rankings due to a combination of the rapidly depreciating yen and weak supply and demand dynamics.Global Premium Office Rent Tracker|December 20224JLLs Premium Office Rent Tracker Occupancy Costs(US$/sq f/year on NLA basis)

12、Net Effective RentAdditional Costs$0$25$50$75$100$125$150$175$200$225$250$275$55$55$56$57$57$58$58$59$59$61$62$63$64$66$67$67$68$68$69$69$69$69$71$72$72$73$74$74$74$74$76$77$77$78$79$80$82$83$83$86$87$87$88$91$96$96$97$99$101$102$103$103$106$106$108$109$110$114$115$128$132$140$149$167$182$220$259Cap

13、e TownJohannesburgDurbanHyderabadRio de JaneiroChennaiBratislavaNairobiColomboChristchurchKolkataSantiagoKuala LumpurPuneBogotaTianjinDetroitBucharestBudapestAdelaideChongqingWarsawSuzhouWellingtonBangkokXianPragueHelsinkiBuenos AiresChengduMinneapolisWuhanAccraLisbonMontrealCharlotteHamburgManilaBa

14、ltimorePhoenixBrusselsJakartaDelhi NCR,GurugramBrisbaneAucklandNanjingMelbourneSao PauloBengaluruMexico CityGlasgowParis,La DfensePhiladelphiaAtlantaBarcelonaHoustonNashvilleLeedsBirminghamDenverManchesterPerthHangzhouHong Kong,Kowloon EastTorontoVancouverAmsterdamMumbai,CBDIstanbulEdinburghHanoiCai

15、roMadridRomeBristolSan DiegoFukuokaShanghai,DecentralizedMilanChicagoAbu Dhabi,ADGMWashington DCOsloSeattleAustinSydneyLondon,Canary WharfDallasRiyadhFrankfurtGuangzhouHo Chi Minh CitySeoul,CBDSeoul,YeouidoDublinBerlinMunichLos AngelesTaipeiSeoul,GangnamTokyo,ShinjukuLuxembourg CityParis,CityNagoyaL

16、agosGenevaOsakaTokyo,ShibuyaSan JoseStockholmZurichCambridge(Massachusetts)BostonMumbai,SBD BKCDelhi,Connaught PlaceLondon,CityNew York,DowntownTokyo,MarunouchiDubai,DIFCShanghai,PuxiMiamiShenzhenHong Kong EastSingaporeSan FranciscoBeijing,ZhongguancunShanghai,PudongNew York,Midtown SouthBeijing,CBD

17、Silicon ValleyBeijing,Finance StreetLondon,West EndNew York,MidtownHong Kong,CentralTop 67 Market RankingsGlobal Premium Office Rent Tracker|December 20225JLLs Premium Office Rent Tracker Source:JLL,Q3 2022Note:All figures are standardized to reflect an NLA basis.Occupancy Costs(US$/sq f/year on NLA

18、 basis)Net Effective RentAdditional Costs$0$25$50$75$100$125$150$175$200$225$250$275$15$17$17$18$18$19$20$21$22$23$25$26$26$26$26$27$27$27$29$29$31$32$32$33$33$33$34$34$35$35$36$36$38$38$39$40$41$41$41$42$42$42$42$43$45$45$46$46$47$48$48$48$49$49$49$49$50$51$51$51$53$53$53$54$54$54$55Cape TownJohann

19、esburgDurbanHyderabadRio de JaneiroChennaiBratislavaNairobiColomboChristchurchKolkataSantiagoKuala LumpurPuneBogotaTianjinDetroitBucharestBudapestAdelaideChongqingWarsawSuzhouWellingtonBangkokXianPragueHelsinkiBuenos AiresChengduMinneapolisWuhanAccraLisbonMontrealCharlotteHamburgManilaBaltimorePhoen

20、ixBrusselsJakartaDelhi NCR,GurugramBrisbaneAucklandNanjingMelbourneSao PauloBengaluruMexico CityGlasgowParis,La DfensePhiladelphiaAtlantaBarcelonaHoustonNashvilleLeedsBirminghamDenverManchesterPerthHangzhouHong Kong,Kowloon EastTorontoVancouverAmsterdam68-134 Market RankingsGlobal Premium Office Ren

21、t Tracker|December 20226Premium total occupancy costs by subregionSource:JLL,Q3 2022Note:All figures are standardized to reflect an NLA basis.Hong Kong Central retained its title as the worlds most expensive premium office market.The United States most expensive submarket,New York Midtown,is second

22、in the global rankings,while London West End,Beijing Finance Street and Silicon Valley round off the top 5.Greater Chinas markets now account for 5 of the top 10 most expensive premium office markets globally Hong Kong Central,Beijing Finance Street,Beijing CBD,Shanghai Pudong and Beijing Zhongguanc

23、un.Major U.S.tech hubs comprise 3 spots in the top 10,namely Silicon Valley,New York Midtown South and San Francisco.At the other end of the cost spectrum,the African hubs of Cape Town,Johannesburg,Durban and Nairobi are 4 of the worlds 10 most affordable office markets covered by PORT.Hyderabad,Che

24、nnai,Rio de Janeiro and Santiago are the lowest-cost locations in Asia Pacific and the Americas respectively.Premium office occupancy costs across the globeConsiderable discounts of at least 50%can be found in the secondary business districts of Hong Kong,New York,London and Shanghai.(US$/sq f/year

25、on NLA basis)Highest75th Percentile25th PercentileLowest Greater China Tier 1Eastern United StatesNorth AsiaWestern EuropeNordicsSouthern EuropeCanadaUnited KingdomWestern United StatesOceaniaSouthern United StatesSouth AsiaSoutheast AsiaMiddle East&AfricaLatin AmericaGreater China Tier 1.5Midwester

26、n United StatesCentral&Eastern Europe$0$50$100$150$200$250$300Within cities,there is a large variance in what a tenant is willing to pay for premium space by submarket,highlighting the importance of location.Across the 11 major cities for which more than one submarket is surveyed,there is on average

27、 a 30%-40%discount between the primary office location and secondary or decentralized business districts.Global Premium Office Rent Tracker|December 2022772%37%27%37%17%10%10%11%3%11%9%11%23%22%21%10%14%11%6%10%16%13%0102030405060708090100High-EndMid-LevelValueAll MarketsBanking&Financial ServicesTe

28、chnology-Online PlatformsTechnology-Hardware&SofwareProfessional&Business ServicesLegalOtherA diverse array of tenants occupy premium office space.Although the usual sectors such as banking and finance,professional and business services,technology and legal dominate demand,other sectors are also act

29、ive,especially in the mid-level and value markets and notably manufacturing,education,pharmaceuticals and energy.In todays tight labor market,companies are consolidating and taking on high-end space to help attract and retain talent.The flight to quality by banking and finance companies is particula

30、rly apparent in high-end markets,accounting for 72%of demand,up from 43%last year.Banking and finance is the sector driving 4 of the top 5 most expensive premium office markets,with energy rounding out the top 5.Despite cooling in many markets,tech continues to be a critical driver of demand,making

31、up one-fifth of demand in mid-level and value markets.This reflects some of the large tech companies expanding to more affordable secondary and tertiary markets,for example Denver in the U.S.and Hyderabad in India.Finance dominates demand in high-end marketsDemand for premium office space by sector,

32、%Note:Market categories based on total occupancy costs:High-End:US$100/sq ft/year Mid-Level:US$60-100/sq ft/year Value:US$60/sq ft/yearSource:JLL,Q3 2022Global Premium Office Rent Tracker|December 20228A very high percentage(87%)of premium office buildings in our survey have a certification in envir

33、onmental sustainability,such as LEED,BREEAM or NABERS,representing an increase from 84%in 2021.The proportion of sustainability-certified buildings rises to 95%for those buildings in high-end markets,underscoring the importance of sustainability credentials in the premium sector,especially in the wo

34、rlds top-tier cities.Green building certification has become a de facto requirement of a premium office building,but as ESG commitments and regulations increase,occupiers will be pushing for even more stringent requirements relating to a buildings energy efficiency and greenhouse gas emissions perfo

35、rmance.With a severe global shortage of near zero energy buildings(NZEB),this segment of the market is likely to set the new rental benchmarks in the next cycle of recovery.Owners and occupiers are also placing greater emphasis on healthy building credentials.Although only 21%of premium office build

36、ings surveyed globally currently have a health and wellness-related certification,such as WELL or Fitwel,this is notably higher than last years 13%,and further rises are expected in 2023.Green building certification now a de facto requirement of premium officesPercentage of markets whose most premiu

37、m building has High-EndMid-LevelValueAllSustainability certification95%87%84%87%Wellness certification16%15%25%21%Source:JLL,Q3 2022Global Premium Office Rent Tracker|December 20229PORT provides a snapshot of the rarefied world of the premium office market.While only a fraction of a citys corporate

38、base will pay such premium rents,the tracker does benchmark office occupation costs on a like-for-like basis.It provides a useful barometer of relative city attraction and highlights the intense strains that many cities are now facing as their real estate markets try to accommodate growth.In this ei

39、ghth edition of PORT we have extended coverage to include a further 10 markets.PORT now embraces occupation costs across 134 major office markets in 116 cities.The Premium Office Rent Tracker(PORT)MethodologyOur objective is to provide a robust like-for-like comparison of office occupancy costs base

40、d on the expertise of JLLs leasing market professionals in each city.The rents refer to the top achievable in units over 10,000 square feet(or approximately 1,000 square meters)in the premium building in the premier office district of each city.In tall buildings,the middle zone is used as the benchm

41、ark.We exclude rents that represent a premium level paid for a small quantity of space or highly prestigious units where a significant premium applies.Rents are standardized on a Net Leasable Area(NLA)basis and adjusted to account for incentives such as rent-free periods and tenant improvement allow

42、ances.Additional costs such as service charges and government taxes on rent are added to allow direct comparison of total occupancy costs between cities.35 markets Americas 54 marketsAsia Pacific 45 marketsEMEA About JLLJLL(NYSE:JLL)is a leading professional services firm that specializes in real es

43、tate and investment management.JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities,amazing spaces and sustainable real estate solutions for our clients,our people and our communities.JLL is a Fortune 500 company with annual

44、revenue of$19.4 billion,operations in over 80 countries and a global workforce of more than 102,000 as of September 30,2022.JLL is the brand name,and a registered trademark,of Jones Lang LaSalle Incorporated.For further information,visit AmericasShannon RichardsonManaging Director Investor AccountsC

45、Jeff EckertPresident,Agency LeasingDInternational DeskPhilipp UeberschaerExecutive DirectorP The JLL Global Office Leasing Group is the worlds most connected global office team,providing our clients with powerful insights and knowledge.We work together to successfully connect landlords and tenants i

46、n offices across the world.Contact any of the team to find out more.Asia PacificChris ArchiboldCountry HeadSTim OConnorHead of Leasing-AustraliaSAlex BarnesManaging Director,Hong Kong&MacauHong KEMEAChris ValentineHead of Central London Office AgencyLMarie-Laure de SousaHead of EMEA Office LeasingPa

47、rismarie-Toby HallLeasing Director Central LondonL Research Teddy LuSenior Manager,Asia PacificHong KCarol HodgsonGlobal Research Director,Property Sectors LRoddy AllanChief Research Officer Asia PacificHong KPhil RyanDirector,Research OfficeLRupert DaviesSenior Research Analyst,Global InsightLAbout

48、 JLL ResearchJLLs research team delivers intelligence,analysis and insight through market-leading reports and services that illuminate todays commercial real estate dynamics and identify tomorrows challenges and opportunities.Our more than 450 global research professionals track and analyze economic

49、 and property trends and forecast future conditions in over 60 countries,producing unrivalled local and global perspectives.Our research and expertise,fueled by real-time information and innovative thinking around the world,creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.