In the midst of a global economic downturn, office occupancy costs are another area taking a hit in the real estate sector. Worldwide real estate firm DTZ said that costs would continue to drop in 2009 as their annual survey on occupancy costs shows demand for space falling throughout the year. The 12th edition of the DTZ Global Occupancy Cost – Offices was recently published and it surveys 114 business districts around the world. Of these areas, more than three fourths (78 percent) expect occupancy costs to fall in 2009.
North American business districts are expecting the best results, with 61 percent looking at stable occupancy costs for the year, while the remaining 39 percent are predicting a major drop in costs. The Middle East and Africa have 30 percent of their business areas looking at some increases in costs, while the rest believe that occupancy costs will fall throughout the year.
European, Latin America and Asia Pacific regions are all expecting to see drops in occupancy costs, according to DTZ. 76 percent of Asian Pacific business districts expect costs to decline, while the remaining 24 percent are looking stable costs during the year.
