Here is some 2010 data for yearly office space rates per square foot.
Please keep in mind that Class A office space in prime parts of town can often be more than double what space would cost in less expensive parts of town.
Hong Kong 161
London 130 (West End)
London 62 (Docklands)
New York 42 (Midtown)
Los Angeles 39
I thought it would be fun to compare these rates to rates in the American South and Midwest. So, we took three sample cities and compared them. It seems that America could compete well in outsourcing simply because the infrastructure is better here, labor is more skilled, and office space is a bargain if you are in the right part of the country.
Koreatown Los Angeles 20-24
Rates are a lot cheaper in Koreatown than downtown. Koreatown is on Wilshire Blvd with access to buslines and even the subway making it almost as convenient as downtown. Parking rates are about $110 per month per spot in Koreatown as well making it a bargain for a commercial center in Los Angeles. So, what is the disadvantage? Offices are older, and not kept up as well as in downtown. Offices in Koreatown for lease would seldom be Class A. There are other parts of Los Angeles such as Commerce and other suburbs that have even better bargains on office space!
Little Rock, AR. 12
We read through the classifieds and found that office space here ranged from $7 psf to around $17 on a yearly basis. If you compare that to Los Angeles, that is less than half the price for Class A office space.
Oklahoma City, OK 11
Rates ranged from around $9 psf yearly to $12 ($11 average) making Oklahoma City a great place to go if you need a large office space at a good rate.
Indianapolis, IN 9
Rates Ranged from $5 psf to $15 yearly averaging about $9 psf for the advertisements we saw. This is the least expensive place we have seen to get an office. Some people think that India is less expensive than America, but one square foot in Mumbai will cost you what seven square feet will cost you in Indianapolis. If you think that India is a bargain — think again!
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