Global Office Fit Out Cost Guide 2024

OFFICE GLOBAL

FITOUT COST GUIDE 2024

2024 GLOBAL OFFICE FIT OUT COST GUIDE KEY TAKEAWAYS

MOST AND LEAST EXPENSIVE BUILD OUT COSTS IN USD$/PSF

GLOBAL

AMERICAS

MOST EXPENSIVE London UK USD $263/psf

LEAST EXPENSIVE Gaborone Botswana USD $50/psf

MOST EXPENSIVE San Francisco U.S. USD $223/psf

LEAST EXPENSIVE Argentina

USD $67/psf

APAC

EMEA

MOST EXPENSIVE

LEAST EXPENSIVE Ho Chi Minh City Vietnam USD $61/psf

MOST EXPENSIVE London U.K. USD $263/psf

LEAST EXPENSIVE Gaborone Botswana USD $50/psf

Tokyo Japan USD $199/psf

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Cushman & Wakefield

OFFICE FIT OUT COST GUIDE 2024

WORKPLACE STRATEGY TRENDS Productivity is most strongly correlated to connection with colleagues, maintaining energy through the day and having time to focus. TOP CORRELATIONS TO PRODUCTIVITY

Easy to Connect with Colleagues 65%

Maintain Energy 63%

Time to Focus 62%

WORKPLACE DESIGN RATIOS Standard fit out typologies are changing from approximately a 70-20-10 divide between individual workspaces, collaborative spaces and support spaces to be nearer to 40-40-20.

PAST WORKPLACE DESIGN ALLOCATION

Support & wellbeing

Collaborative

Individual workspace

FUTURE WORKPLACE DESIGN ALLOCATION

Support & wellbeing

Individual workspace

Collaborative

SUSTAINABILITY TRENDS 99% of the 7,000 global companies that have set net zero targets have done so since 2022 1 . Top green building cost savings 2 are the following.

Water consumption 11% TO 40% SAVINGS =

Maintenance costs 12% SAVINGS =

Energy consumption 25% TO 50% SAVINGS =

These can add up to a total operating cost savings of 14% to 19%.

1 https://sciencebasedtargets.org/ 2 https://smart-cre.com/financial-benefits-of-green-buildings-are-they-expensive/

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In this inaugural Office Fit Out Cost Guide global summary, we have set out average fit out costs for 134 markets across the world, to help guide occupiers through the early stages of defining their office relocation budgets. In addition to this global summary, more detailed data and insights are provided in three regional guides for: Americas; Europe, Middle East and Africa; and Asia Pacific. MARKET REVIEW AND OUTLOOK ECONOMY The global economy remained resilient throughout much of 2023 as central banks around the world continued to hike interest rates to counter high inflation. Indeed, global GDP growth for the year is estimated at 2.6%, which is broadly in line with average growth over the past decade. Positively, inflation is down from its peak, recorded in mid-2022 for most countries, and for many economies headline inflation is coming under control, with both the U.S. and Euro zone almost at 3% at the end of 2023. Despite further progress on core inflation needed, the hiking cycle is now largely over and attention is turning to when central banks will pivot and begin easing rates from their current restrictive levels. The timing of this pivot will vary across the world, though it is likely to occur from around the mid-point of this year. While central banks will likely want to be sure that inflation is firmly within, or at least on the correct trajectory to, target levels, they will also be mindful of the economic growth outlook. The cost of greater economic resilience in 2023 is that growth is forecast to slow through H1 2024, with some economies likely to enter recession or experience recessionary-like conditions during the year. For the U.S. this means growth of approximately -0.3%, the Euro area and U.K. are forecast at 0.9% and 0.3% respectively, with Asia Pacific around 3.5%.

CUSHMAN & WAKEFIELD UTRECHT, NETHERLANDS

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Cushman & Wakefield

OFFICE FIT OUT COST GUIDE 2024

FORECAST REAL GDP GROWTH (AVERAGE ANNUAL PERCENT)

United States

Euro area

U.K.

Asia Pacific

2023

2.5%

0.5%

0.3%

4.3%

2024

-0.3%

0.9%

0.3%

3.5%

2025

1.1%

1.5%

0.9%

3.4%

Source: Moody’s Analytics; Cushman & Wakefield Upside and downside risks to this outlook abound. Support for stronger growth can be found in tight labour markets, which have been fundamental to the resilience shown to date. In contrast, geo-political tensions continue, which have placed further stress on supply chains, complicated economic policy and driven more cautious risk appetites.

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Employee and stakeholder input resulted in significant buy in from users, who were able to recognize their influence in the office design. costs based on your unique construction requirements? LOOKING TO GO BEYOND MARKET AVERAGES and understand

OFFICE MARKET Against this uncertain economic backdrop, the office sector is also going through a period of structural change. The rise of hybrid and remote working practices have had a significant impact on office demand in some markets, as companies have rightsized their office space footprints. North America has experienced the greatest impact of these forces, with Q4 2023 marking the eighth consecutive quarter of negative net absorption, which coincided with a historically high national vacancy rate of almost 20%. However, not all office space is equal, and companies are increasingly substituting quantity with quality. Quality is often synonymous with strong sustainability certification from a physical environment and well-being perspective. For example, overall office leasing in Europe remained in positive territory in 2023, though declined 14% year-on-year with activity that was bifurcated between a 5% drop for Grade A space compared to 16% for secondary space. It is also important to note that not all markets are experiencing a contraction in demand. Grade A net absorption in Asia Pacific rose 21% YOY to reach over 78 million square feet (msf), with India setting a new record at 41 msf.

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JUNIPER NETWORKS, FRANCE

OFFICE FIT OUT COST GUIDE 2024

GRADE A NET ABSORPTION BY REGION (MSF)

80

60

40

20

0

-20

-40

Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021

Q4 2022 Q4 2023

EMEA

AMERICAS

APAC

Looking to the future, much of the aggregate impacts of flexible and remote working experienced over the past few years have worked their way through the system; they likely have a little more to run, albeit at a more muted level. This means the office recovery will remain highly uneven across regions, markets and the building quality spectrum. Notwithstanding, top tier office product—the top 10-15% of any given market—is

expected to outperform the world over, providing many of the criteria that occupiers are now seeking to meet their workplace, location and ESG goals. Beyond this, we forecast that net absorption in the Americas will return to positive territory in 2025, helping drive stronger growth in global office demand 3,4,5 .

DLA PIPER, HOUSTON

USING THE GUIDE Estimated costs provided herein are indicative of market averages based on certain assumptions. Exact costs for specific projects may differ to those presented here, and so we recommend engaging a Project & Development Services professional to advise on precise costings based on your unique construction requirements.

3 https://www.cushmanwakefield.com/en/united-states/insights/us-macro-outlook 4 https://www.cushmanwakefield.com/en/insights/european-outlook 5 https://www.cushmanwakefield.com/en/insights/asia-pacific-office-outlook

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AMERICAS All numbers are USD per square foot.

COUNTRY

MARKET

FITOUT

COUNTRY

MARKET

FITOUT

Argentina

Argentina

67

United States

Houston

118

Brazil

Brazil

100

United States

Indianapolis

110

Canada

Calgary

119

United States

Kansas City

115

Canada

Montreal

143

United States

Las Vegas

174

Canada

Toronto

152

United States

Los Angeles

178

Canada

Vancouver

140

United States

Lower CT

169

Chile

Chile

84

United States

Miami

151

Colombia

Colombia

71

United States

Minneapolis

139

Costa Rica

Costa Rica

88

United States

Nashville

109

Dominican Republic

Dominican Republic

103

United States

New York City

213

El Salvador

El Salvador

106

United States

Orange County

192

Guatemala

Guatemala

106

United States

Orlando

159

Mexico

Guadalajara

123

United States

Philadelphia

173

Mexico

Mexico City

107

United States

Phoenix

147

Mexico

Monterrey

84

United States

Portland

165

Panama

Panama

157

United States

Puerto Rico

120

Peru

Peru

86

United States

Raleigh

149

United States

Atlanta

159

United States

Reno

132

United States

Austin

131

United States

Sacramento

167

United States

Baltimore

152

United States

Salt Lake City

113

United States

Boston

173

United States

San Diego

192

United States

Charlotte

147

United States

San Francisco

223

United States

Chicago

173

United States

San Jose

219

United States

Cincinnati

105

United States

Seattle

208

United States

Columbus

110

United States

St. Louis

99

United States

Dallas

136

United States

Tampa

154

United States

Denver

151

United States

Upstate NY

150

United States

Detroit

152

United States

Washington DC

135

United States

East Rutherford

161

Uruguay

Uruguay

97

8

Cushman & Wakefield

OFFICE FIT OUT COST GUIDE 2024

ASIA PACIFIC All numbers are USD per square foot. COUNTRY MARKET

FIT OUT RETROFIT REINSTATEMENT

Australia & New Zealand

Adelaide

141

85

12

Australia & New Zealand

Brisbane

146

88

13

Australia & New Zealand

Canberra

172

91

14

Australia & New Zealand

Melbourne

150

90

13

Australia & New Zealand

Perth

141

85

12

Australia & New Zealand

Sydney

153

92

15

Australia & New Zealand

Auckland

158

95

13

Greater China

Beijing

110

39

12

Greater China

Guangzhou

103

40

10

Greater China

Hong Kong

147

65

38

Greater China

Shanghai

107

42

11

Greater China

Shenzhen

109

41

10

Greater China

Taipei

125

90

17

India

Ahmedabad

65

57

9

India

Bengaluru

67

58

9

India

Chennai

65

55

8

India

Delhi

69

59

10

India

Hyderabad

65

57

9

India

Kolkata

64

55

8

India

Mumbai

73

66

10

India

Pune

65

57

9

North Asia

Nagoya

191

80

48

North Asia

Osaka

195

82

49

North Asia

Tokyo

199

84

50

North Asia

Busan

143

75

19

North Asia

Seoul

156

84

23

Southeast Asia

Jakarta

72

32

8

Southeast Asia

Kuala Lumpur

80

53

10

Southeast Asia

Manila

96

63

20

Southeast Asia

Singapore

140

57

17

Southeast Asia

Bangkok

85

60

11

Southeast Asia

Hanoi

63

33

5

Southeast Asia

Ho Chi Minh City

61

32

5

9

EUROPE, MIDDLE EAST & AFRICA All numbers are USD per square foot. COUNTRY MARKET

FIT OUT

REINSTATEMENT

Armenia

Yerevan

80

8

Azerbaijan

Baku

80

8

Belgium

Brussels

144

16

Botswana

Gaborone

50

9

Bulgaria

Sofia

75

8

Czech Republic

Prague

125

10

Denmark

Copenhagen

180

10

Egypt

Cairo

176

12

France

Paris

119

12

Georgia

Tbilisi

80

8

Germany

Berlin

229

20

Germany

Frankfurt

236

20

Germany

Hamburg

246

20

Germany

Munich

238

20

Greece

Athens

105

9

Hungary

Budapest

120

9

Ireland

Dublin

206

17

Israel

Tel-Aviv

150

11

Italy

Milan

115

13

Italy

Rome

115

13

Jordan

Amman

75

7

Kazakhstan

Astana

75

7

10

Cushman & Wakefield

OFFICE FIT OUT COST GUIDE 2024

EUROPE, MIDDLE EAST & AFRICA All numbers are USD per square foot. COUNTRY MARKET

FIT OUT

REINSTATEMENT

Kyrgyzstan

Bishkek

75

7

Morocco

Rabat

138

13

Netherlands

Amsterdam

120

15

Poland

Warsaw

125

13

Portugal

Lisbon

109

16

Romania

Bucharest

94

9

Saudi Arabia

Riyadh

165

15

Serbia

Belgrade

88

8

Slovakia

Bratislava

114

11

South Africa

Cape Town

152

10

South Africa

Johannesburg

152

10

Spain

Barcelona

110

14

Spain

Madrid

105

14

Sweden

Stockholm

182

11

Turkey

Istanbul

137

13

UK

Birmingham

216

16

UK

Glasgow

205

16

UK

London

263

21

UK

Manchester

223

17

United Arab Emirates

Abu Dhabi

152

12

United Arab Emirates

Dubai

152

12

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HOW WE CLASSIFY FIT OUTS

AMERICAS The Generation 1 tenant improvement project (Gen 1) scope and related costs are based on modern-day corporate office space with private offices, office workstations, executive areas, reception, training rooms, conference rooms and all other associated ancillary space customary in a corporate facility. Low Voltage Cabling, Audio Visual Equipment, Security, Furniture and other Furniture, Fixtures & Equipment (FF&E) items are excluded from the pricing. Given the fluidity of the construction market, a ten percent (10%) contingency allowance has been included in the cost.

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TO READ THE AMERICAS FIT OUT GUIDE

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Cushman & Wakefield

OFFICE FIT OUT COST GUIDE 2024

CUSHMAN & WAKEFIELD, BOSTON

APAC

EMEA > Meeting facilities around 10% to 20% of space, with part single glazed partitions > Alternations to less than 25% of ceiling > Plasterboard ceiling to meeting rooms > Feature wall finishes to reception and cafeterias > Medium specification carpet and finishes > Hard flooring to reception > Alterations to air conditioning and ventilation to suit cellurisation > Multiple data points to each desk position

> Mixture of one-to-one assigned workstations with zones of non-assigned work-points > Flexible working practices have been adopted post-pandemic > Support functions include an expanded break-out area, a variety of meeting rooms and dispersed collaborative spaces > More than 50% of the space is allocated to dedicated workstations

CLICK HERE

CLICK HERE

TO READ THE APAC FIT OUT GUIDE

TO READ THE EMEA FIT OUT GUIDE

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CONTACTS

RESEARCH

DR DOMINIC BROWN Head of International Research dominic.brown@cushwake.com

SANDY ROMERO Research Manager, Global Research sandy.romero@cushwake.com

DAVID SMITH Head of Americas Insights, Global Research david.smith4@cushwake.com

PROJECT & DEVELOPMENT SERVICES

BRIAN UNGLES President Project & Development Services, Americas brian.ungles@cushwake.com AMERICAS

RICHARD JANTZ Tri-State Lead Project & Development Services richard.jantz@cushwake.com

TOM GIBSON Head of Project & Development Services, Asia Pacific tom.gibson@cushwake.com ASIA PACIFIC

ANDREW CARMICHAEL Senior Director Project & Development Services, Asia Pacific andrew.carmichael@cushwake.com

NIC WILKINSON EMEA Project & Development Services Chair nic.wilkinson@cushwake.com EMEA

GILLIAN BULLEN Head of Operations

Project & Development Services gillian.bullen@cushwake.com

CAMILLA BASTONI Head of Account Management, Project & Development Services camilla.bastoni@cushwake.com

ABOUT CUSHMAN & WAKEFIELD

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.

For additional information, visit www.cushmanwakefield.com