On November 2012 a significant shift took place in the world of office retail space when the Asian mega city of Hong Kong dethroned New York from its lofty perch as the city in possession of the most expensive retail space in the globe. New York held the number one position for more than a decade before the baton was passed on to the Oriental city.
Real estate experts reckon that a square foot of retail space in the prime shopping areas of Hong Kong can cost as much as $ 4,500 on an annual basis. The average market rate for one square feet of office space in the city is usually in the region of $2,500 to $3,000. Average rentals have shot up by 35% over the last year.
There are many reasons behind this slow but sure rise in office space rental costs in Hong Kong. Most of these high value retail spaces have been lapped up by global luxury brands of the likes of Sa Sa International Holdings Ltd, Salvatore Ferragamo Italia Spa, Chanel, Gucci, Christian Dior and Burberry.