Americas Office Fit Out Cost Guide 2024

OFFICE LEASING OVERVIEW > The office sector continues to be plagued by subdued demand, primarily influenced concerns. Both have prompted tenants to extend their decision-making timelines. > Vacancy rates have increased an average of 430 bps across the Americas, with rates ranging from a low of 9.2% in Chile to a high of 20% in Brazil. > Most countries in the Americas recovered the office-using jobs they lost during the pandemic and are on average 9.0% higher today relative to pre-pandemic office-using employment (OUE). OUE should grow an additional 1.7% in the next two years. Job growth acceleration in 2025 should translate to office absorption. by the increase in hybrid and remote work, along with ongoing economic

> In the U.S., Q4 marked the eighth consecutive quarter of negative office demand, coinciding with a historically high national vacancy rate of 19.7%. > It’s not all doom and gloom, however. Newer trophy Class A buildings are receiving positive absorption as occupiers look for the best space for their employees. > This separation is further reflected in the selling price of these assets. On average, the top quartile of U.S. office buildings sold for $92 per square foot (psf) more than overall office buildings from 2017 through 2019. Over the last three years,

this spread has risen over 57%, with the top quartile demanding a $53 psf premium.


Cushman & Wakefield


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