Global prime office rent rate trends in 2023

Of the 84 markets in our scope, 53 reported increasing prime rents over the first nine months of 2023. A diverse cohort of office markets have witnessed significant growth in prime rent rates, with five reporting double-digit percentage increases over the course of this period.

Top five double-digit percentage increases

1. Dubai (21.79%)

2. Cairo (18.92%)

3. Madrid (11.84%)

4. Budapest (10.71%)

5. London’s West End (10.71%)

These make up the top five across our scope of gateway cities.

Of the 84 markets we track, just 19 reported declining rates. Of these 19, five are notably located in Greater China. Shenzhen (4.49%), Hong Kong (5.56%) and Guangzhou (9.72%) all ranked among the five fastest declining prime markets, only surpassed by Dublin (11.96%) and Manila (13.75%).

North America

Continuing a trend seen in the Q2 data, prime rates across North America’s leading office markets have stabilised, to a degree that has not been seen across any of the other global regions in our scope. Of the 20 markets our regional partner Cresa provides data for, 11 have seen prime rent rate changes of less than 1% over the first nine months of 2023.

Across this diverse range of markets, the greatest increases have been witnessed in Florida, in the Tampa-St Petersburg (4.87%) and Miami (4.86%) markets. At the other end of the scale, San Francisco has witnessed the biggest drop in prime rent rates (3.05%) over this period.

However, this market is an outlier to the North American trend, having recorded a decline that is more than four-times greater than any other regional market.

This analysis is based on local currency data. For prime rent figures in US$ for direct price comparisons, as well as the latest data concerning Total Occupancy Costs and market favourability, please see our latest quarterly Global Occupier Market Dashboard.

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