Bargain buy: NYC tops league of nations.

* London retains #1 ranking as most expensive office leasing location

* Paris passes Tokyo for second most expensive

* Central/Eastern Europe best-performing region

* Global office market is reaching the bottom of cycle

New York is a bargain for office space when compared to its international competitors, according to the latest survey of occupancy costs (rents, taxes, and utility costs) around the globe from Cushman & Wakefield, the largest privately held commercial real estate firm in the world.

New York ranked fourth on the list in Business Space Across The World, which is published by Cushman & Wakefield. London ($164.70 per square foot), Paris ($105.78) and Tokyo ($91.33) were the three most expensive.

"New York is highly competitive on the global stage which makes it a great place to do business for international companies," said Bruce Mosler, President, U.S. Operations, C&W.

London has retained its position as the world's most expensive city for office space in this year's survey.

The total cost of occupying one square foot of prime office space in London's Mayfair district is 55 percent more than in Paris, which overtakes Tokyo this year to finish in second place, primarily as a result of the strength of the euro. Dublin joins the top 10 for the first time, replacing Frankfurt.

Of the world's 202 top office locations monitored in 45 countries in the year ending December 31, 2003, rents (which form the largest proportion of total occupancy costs) decreased in local currency terms by an average three percent--significantly less than the 7.0 percent decrease recorded the year before.

Around 40 percent of locations saw rents either increase or remain stable, with decreases recorded in the remainder.

"The worst is behind us as the early signs of economic recovery and more upbeat business sentiment filter through to the world's key office markets," says David Hutchings, Head of Research, Cushman & Wakefield European Operations.

However, he cautions: "As the business environment continues to improve, it will take time for rents to increase.

"The decision to expand office space in times such as these is one of the last steps to be taken by companies, after they have decided how they will grow, in which markets, and how many new people they will take on. "

Central/Eastern Europe is the best regional performer, with rents falling by only 1.2 percent last year. "Sentiment in Central and Eastern Europe has been increasingly positive as the region experiences a general opening in the run-up to a number of countries joining the European Union in May," says Hutchings.

"The region has also been favored as a location for back-office functions, with corporations attracted by the relatively low cost of office space, and a highly skilled and multilingual workforce."

Looking at the ranking of the most expensive location for total office occupancy costs in each of the 45 countries monitored, the Hungarian capital Budapest made one of the biggest jumps, moving up 10 places to 27th position.

Hutchings explains: "Budapest has performed well, but this is partly due to a few landmark deals, which have meant that top rents in non-central locations went up by 8.0 percent.

"Average rents have remained stable and still highly competitive on a global basis."

2004   2003   Country           City          Location

1      1       United Kingdom   London        West End (Mayfair)
2      3       France           Paris         CBD
3      2       Japan            Tokyo         Centre
4      4       USA              New York      Midtown
5      6       Sweden           Stockholm     Birger Jarlsgatan
6      5       Russia           Moscow        CBD
7      7       Italy            Milan         CBD
8      8       Switzerland      Zurich        CBD
9      9       Greece           Athens S      yntagma Square
10     13      Ireland          Dublin        2/4 Districts
11     10      Germany          Frankfurt     CBD
12     18      Australia        Sydney        Centre
13     11      Korea            Seoul         Centre
14     14      Spain            Madrid        CBD
15     18      Belgium          Brussels      Quartier Leopold
16     17      Netherlands      Amsterdam     South
17     12      China            Hong Kong     Centre
18     31      Finland          Helsinki      CBD
19     16      India            Mumbai        Centre
20     15      Poland           Warsaw        CBD
21     24      Austria          Vienna        Central
22     27      Denmark          Copenhagen    City
23     21      Romania          Bucharest     CBD
24     22      Lebanon          Beirut        CBD
25     20      Norway           Oslo          CBD
26     33      Canada           Toronto       Centre
27     38      Hungary          Budapest      CBD
28     30      Portugal         Lisbon        Ave de Liberdade
29     32      China            Shanghai      Centre
30     23      Taiwan           Taipei        Centre
31     19      Singapore        Singapore     Centre
32     34      Czech Republic   Prague        CBD
33     26      Mexico           Mexico City   Centre
34     28      Israel           Tel Aviv      CBD
35     41      New Zealand      Auckland      Centre
36     36      Brazil           Sao Paulo     Centre
37     37      Estonia          Tallin        CBD
38     40      Lithuania        Vilnius       CBD
39     35      UAE              Dubai         CBD
40     42      Turkey           Istanbul      CBD European Side

2004    Occupancy costs:
       dollars/s/f/year *

1           164.70
2           105.78
3            91.33
4            84.82
5            77.23
6            76.39
7            72.29
8            62.65
9            62.53
10           60.96
11           59.64
12           54.70
13           51.93
14           51.08
15           50.84
16           50.36
17           47.11
18           42.53
19           41.45
20           40.72
21           40.48
22           37.59
23           36.63
24           35.78
25           35.30
26           34.94
27           34.46
28           34.46
29           34.34
30           34.22
31           34.22
32           32.53
33           31.81
34           31.33
35           27.71
36           27.47
37           26.14
38           25.18
39           21.57
40           21.45

* Rents are calculated on a net internal basis, and are the top rent in
each location, with each location being the most expensive in their
country or region.