World's Most Expensive Office Markets Get Cheaper as Job Cuts Pare Demand

[marmar]

World’s Most Expensive Office Markets Get Cheaper (Update1)
By David M. Levitt and Simon Packard


Dec. 1 (Bloomberg) -- The world’s most expensive office markets got a little cheaper this year.

More than 130 cities worldwide had declines in rent expenses of an average 7.7 percent in the year ended Sept. 30, CB Richard Ellis Group Inc. said in a report today. Almost 50 cities reported declines of more than 10 percent. Rental costs fell about 30 percent in Midtown Manhattan, 53 percent in Singapore and 41 percent in central Hong Kong.

“The places that went up the fastest and highest also came down the fastest and at greater depth,” said Raymond Torto, Boston-based chief economist for CB Richard Ellis, the largest publicly traded broker. “You party Saturday night and you pay for it on Sunday morning. That’s true across the globe.”

The global recession and credit crisis are pushing down office rents as companies pare jobs. About 1.93 million job cuts have been announced worldwide this year, data compiled by Bloomberg. In the U.S., the unemployment rate jumped to 10.2 percent in October, the highest level since 1983. ............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=aSqhTjhF2IO4&pos=10

[arcadian]

1. I think you can buy an entire office building in Detroit for about $5000

[physioex]

3. And I am sure there are no takers....

Heck the stadium went for 500K or something.

[marmar]

4. The stadium is in Pontiac.....

Ford Field, downtown, is quite valuable.

[FarCenter]

5. Well, at least Ford Field cost a lot -- but that doesn't make it valuable

[physioex]

2. A Secondary Reason...

Would be the internets. You can have an office in any location with a high speed internet connection. Many people I know work from home a couple of days instead of commuting.