Downtown enters top 50 list of most expensive office markets.

Downtown Manhattan cracked the top 50 list of most expensive office markets, according to CB Richard Ellis Research's recently released semi-annual Global Market Rents survey.

Lower Manhattan came it at number 48 on the list with Midtown ranked 24th, Calgary (31st), Toronto (34th) and Washington, D.C. (44th) among the North American cities. Occupancy in Midtown Manhattan is still the most expensive in the United States, having risen $10 to $62. Rio de Janeiro rose $3 to $51 but slipped several spots to 38th, while Sao Paulo inched up to $43 and dropped to 47th from 44th a year ago.

According to the survey, developing countries account for half of the 20 world markets with the fastest growing occupancy costs for prime office space.

Thirteen markets also posted a 30% or greater increase in occupancy costs over the last year, according to the survey.

The 13 markets with occupancy costs growing at a rate of more than 30% represent a broad cross-section of the global economy. With the emergence of New Delhi, Mumbai and Manila, Asia has more above-30% markets than any other region of the world; the Pacific Region's Brisbane and Perth both recorded occupancy costs growing at more than 30% per year, with economies heavily influenced by the demand for commodities from Asia; and Buenos Aires and Bogota are the two Latin American markets with the fastest growing occupancy costs.

North America was responsible for two markets with occupancy costs growing above 30% per year--Downtown Manhattan and Honolulu; while Eastern Europe (Sofia) and the Middle East (Abu Dhabi) have one each.

Out of the 176 markets surveyed, occupancy costs increased in 150 and decreased in only 20. Increases in occupancy costs ranged from as high as 92.8% in Abu Dhabi, down to just 0.1% in Las Vegas.

Mumbai's Nariman Point (India) ranked 7th in the top 10 most expensive markets, climbing $41 to $106 (occupancy cost in /sq. ft./annum used throughout release) over the last 12 months. Elsewhere in Asia, Hong Kong occupancy costs jumped 35% to $116.

Tokyo Inner Central remains one of the world's most expensive office markets, ranking second overall. Occupancy costs in the Inner Central Five Wards increased 12% to $146, while Outer Central costs, the fourth highest, increased 14% to $134. Singapore, ranking 37th, rose by $17 to $52. In the Pacific Region, Sydney was the only market to make it into the top 50, coming in at 46th.

At $212, London's West End once again led the top 50 list of the most expensive office markets. Occupancy costs in that submarket are 46% higher than the next most expensive submarket, Tokyo's Inner Central. Occupancy costs in the City of London (financial district) rose to $145, an 18% increase from $123 a year ago. London's West End also experienced the greatest rise in occupancy costs among all European cities, increasing by 24%.