CBRE, the international real estate company, has updated its global 50, which lists annual office costs per square foot.
Once again, the West End of London (where Lighthouse is based) comes top at $179. The ‘City of London’, the banking district, comes in at $119: one third less. Meanwhile, mid-town Manhattan is $54, central Boston is $40 and Gartner’s home town, Stamford, CT, is $38: almost one fifth the cost of central London. The scarcity of good locations will, without a doubt cause a sort of filtering of professions that can afford it. You will no longer see low to medium income earning offices in these metropolitan areas, much to the chagrin of “mom and pop” shops.
London’s high prices certainly reflect the business value of this vibrant and multicultural city, in which 300 languages are spoken. It has the world’s busiest international airport and is the world’s financial centre, having more international banks than New York and Frankfurt combined.
Furthermore, it also explains London’s fondness for open-plan, cubicle-less, offices and, in turn, the flatter hierarchies and greater speed that business here have developed. However, it has a special down-side at lunch time: The fantastic aroma of all the take-away food that colleagues bring back to office is hard to avoid!