Birmingham is becoming more competitive against the world's top office locations, according to DTZ's ninth global office occupancy costs survey (GOOCS).
The city is ranked 23rd in the table of the most expensive office locations at a total occupancy cost per workstation per year of £4,670.
This is down slightly on 2005's figure of £5,022, when the UK's second city occupied position number 19.
The survey calculates the figures on a 'per workstation' basis to reflect the true costs of office accommodation and enables comparison between 117 business districts in 46 countries worldwide.
Geoff Thomas, Midlands chairman at DTZ, said: "UK centres are also becoming more competitive in international terms due partly to a strengthening of the dollar.
"Capital cities dominate the top 30 most expensive office locations and it is a sign of the growth of the business services in Birmingham that the city ranks amongst the top 30 office locations in the world."
In Western Europe, London (West End), Paris and London (City) remained the top three most expensive locations in Europe for the second year running, however all three l ocations experienced a decline in costs.
DTZ said this is a trend mirrored across most of Western Europe - primarily due to the depreciation of the euro compared to the US dollar.
Among the six regions (Western Europe, North America, Middle East/Africa, Central and Eastern Europe, Asia-Pacific, Central and South America) office locations in Western Europe remained the most expensive at £5,034 per workstation per year - 38 per cent higher than the next most expensive region of North America - £3,562 per work station per year.
DTZ also said that the most notable finding was the emergence of Hong Kong, which posted its largest increase over the past decade, 61 per cent to £8,522 per workstation pa and climbed an impressive 13 places to become the world's third most expensive location.
This increase has been driven by the positive take-up and business sentiment, especially by investment banks, with a greater willingness to pay for better quality offices. However, the fundamental reason for Hong Kong's surge is due to the lack of available new Grade A office buildings coming onto the market.
India has one of the fastest growing economies in the world and a rapidly expanding real estate market, which is fuelling a surge in office occupancy costs across the country.
Dubai also saw the second biggest increase in occupancy costs - up 50 per cent to £4,079 triggering a rise of 38 places to claim the 37th position and surpassing Riyadh to claim the third most expensive region in the Middle East, behind Doha and Kuwait City (included for the first time this year).
For the outlook for 2006 Mr Thomas said: "The survey results show that Western Europe and key UK office locations, including Birmingham, remain extremely strong as global business centres."