London regains crown as most expensive market for office space -report

* London leapfrogs Hong Kong to take top spot for first time
since 2008
* Rio de Janeiro moves to No. 3 from No. 8 on 48 pct rent
growth
* Global office rents rise by 3 pct

By Ilaina Jonas
NEW YORK, Feb 19 (Reuters) - London elbowed its way past
Hong Kong to regain the title as the world's most expensive
market in which to rent office space, while Rio de Janeiro
jumped to the No. 3 spot from No. 8, according to a report by
global real estate services firm Cushman & Wakefield.
It was the first time since 2008 that London took the top
spot. Competition for the scarce high quality office space in
London fueled office rents by 2 percent in the city's West End
bolstering rents sufficiently to leapfrog over Hong Kong,
according to the report on Tuesday. Office rents in the West End
are expected to continue to grow as the economy improves,
Cushman & Wakefield said.
At 2,137 euros per square meter, or $262 per square foot,
London's occupancy cost, which includes taxes and charges for
cleaning and other services, are more than twice those of Paris,
New York and Moscow.
Hong Kong's central business district dropped to second
place. But the Zona Sul area of Rio de Janeiro barreled its way
into the top three of the world's most expensive office
locations, with rents up 43 percent over last year, the report
said.
Globally, prime offices building rent rose by 3 percent, the
report said. South America, particularly Brazil and Colombia,
accounted for much of that growth, while many markets suffered
under continuing economic uncertainty.
"Safe havens or gateway cities such as London, Hong Kong and
New York continue to command high rents despite uncertain
economic conditions, as they remain key markets in which to do
business; while burgeoning population growth has led to rising
occupancy costs in emerging markets in South America and Asia,"
Glenn Rufrano, Cushman & Wakefield president and chief executive
said in a statement.
Rounding out the top 10 most expensive office markets at the
start of 2013 compared with 2012 were:
* No. 4 Connaught Place, New Delhi; up from No 5
* No. 5 Tokyo central business district, 5 Central Wards;
down from No. 3
* No. 6 Moscow central business district; down from No. 4
* No. 7 Beijing central business district; down from No. 6
* No. 8 New York, Midtown, Madison and Fifth avenues; down
from No. 7
* No. 9 Sydney central business district; unchanged
* No. 10 Paris central business district; unchanged

(Reporting By Ilaina Jonas; editing by Sofina Mirza-Reid)