JLL Finds Only 11% Office Space Post-2020 as Prime Rents Hit $1,296/sq m
The Innovation Geographies report finds only 11% of global office space built post-2020, dropping to 9% in the Bay Area, Beijing, Boston, New York and Seoul, and sees CBD vacancy at 0.9% in Paris and 1.2% in London. Prime rents exceed $1,296 per square meter in core hubs versus $324 in emerging markets.
1. Modern Office Supply Constraints
The fourth Innovation Geographies report reveals that just 11% of global office space was built after 2020, dropping to 9% in hubs such as the Bay Area, Beijing, Boston, New York and Seoul, while central business district vacancies have fallen to 0.9% in Paris and 1.2% in London.
2. Rise of Reinforcer Innovation Hubs
Eighteen reinforcer cities, from Austin and Amsterdam to Shanghai, have seen population inflows 3.8 times greater than traditional innovation centers, driving firms to evaluate locations based on built environment quality and affordability alongside city reputation.
3. Rent Bifurcation and Investment Outlook
Market bifurcation is pushing prime office rents above $1,296 per square meter in core hubs, compared with entry points as low as $324 in emerging markets; investors are targeting regeneration, retrofitting and Northern European cities such as Copenhagen, Amsterdam and Frankfurt to meet unmet demand.