Annual cost of prime office space in selected markets worldwide 2021-2022

The global office real estate sector was severely affected by the coronavirus pandemic and the political and economic uncertainty that followed. With many companies placing expansion plans on hold and transitioning to hybrid working models, vacancies across many markets spiked and leasing activity slowed down. The net effective costs for office occupiers decreased in many of the major markets, including Hong Kong, London, and Tokyo between 2021 and 2022. Midtown New York was one of the few markets where rents grew, though the increase was minor - from 163.3 U.S. dollars per square foot in the fourth quarter of 2021 to 168.5 U.S. dollars per square foot in the third quarter of 2022.