EMEA Fit-Out Cost Guide 2019/2020 Edition

EMEA

FIT-OUT COST GUIDE 2019/20 Edition

FOREWORD

CONTENTS 2

FOREWORD

27

REINSTATEMENT

3

WORKPLACE TRENDS

29

PROCUREMENT & PROGRAMME

5

TRADITIONAL VS. AGILE WORKPLACE

31

CAPITAL PLANNING

6

LAYOUTS

33

CONSTRUCTION SERVICES

7

SPECIFICATIONS (LOW, MEDIUM, HIGH)

34

TAX DEPRECIATION

14

PRICING ASSUMPTIONS

35

CORPORATE SOCIAL RESPONSIBILITY

15

CAT B CONSTRUCTION COSTS

37

REGIONAL MARKET OUTLOOK

17

TECHNOLOGY

39

FIT-OUT COST INDEX | EMEA

21

FURNITURE

40

FIT-OUT COST INDEX | GLOBAL

24

PROFESSIONAL FEES

41

BUILD YOUR BUDGET MATRIX

25

BUSINESS TRANSITION & MOVE MANAGEMENT

Welcome to the 2019/20 edition of our EMEA Fit-Out Cost Guide, which has led the market as the most comprehensive analysis of fit-out pricing in Europe, the Middle East and Africa, for the past seven years.

Since its introduction in 2013, the Guide has been tried and tested by the entire industry.

This level of rigour has allowed us to fine tune the Guide into its most comprehensive evolution yet, just as CBRE continues to lead the way in corporate real estate fit-out. The Fit-Out Cost Guide is a powerful tool created as a swift solution to a host of estimating and benchmarking requirements, such as high-level capex estimations, and challenging third party and contractor costings. This year’s edition contains even more quality data, in part thanks to CBRE’s partnership with African Project Management firm, Profica. As such, our already keen insight into the African and Middle Eastern market is enhanced, enabling us to provide global clients with even more commercial confidence. CBRE has invested in numerous other acquisitions and partnerships across the region, including CBRE Excellerate in Africa and the Middle East, Ramot in Israel and Geico Lender in Italy, all adding to our ability to deliver world-class services across EMEA. In 2018, CBRE made notable investment in Kahua, our cloud-based and collaborative project management solution. Since then, our use of the tool has matured and it is now being effectively deployed to streamline our project management processes, generating insightful reports and increasing productivity. This is just one example of the significant investments we are making in technology, helping our teams and customers to perform better.

Our position as thought leaders of the projects industry is enabled by our talented and diverse team. Our people are at the centre of our strategy and our notably low attrition rate is testament to CBRE’s commitment to retaining and developing our EMEA project team. We are proud to have a diverse team, who bring multiple languages, backgrounds, skills and cultures that enhance our services and solutions.

Our clients are demanding an increasingly integrated project solution, from project governance, to programme management, to principal contracting and move management – all seamlessly delivered by a single provider.

CBRE is a world leader in project management, and we are proud to be able to deliver this fully integrated offering. Through our ever-increasing global presence, our agile response to the changing market, and our commitment to nurturing talent and investing in technology, CBRE remains your ideal partner to provide projects guidance to the entire industry.

Finally, I want to give my sincere thanks to everyone who has contributed to the Fit-Out Cost Guide, and thank you for your continued engagement with our work. We hope you enjoy this edition.

MATTHEW EASTWOOD Managing Director Project Management, EMEA CBRE Global Workplace Solutions

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EMEA FIT-OUT COST GUIDE

CBRE PROJECT MANAGEMENT

2

WORKPLACE TRENDS Perhaps not unexpectedly, TRENDS OBSERVED IN THE LAST 12 MONTHS* the greatest challenge facing building occupiers over the last There is a growing concern relating to the shortage of skilled labour. To address this particular concern, organisations have identified four key areas through which they can enhance their appeal 12 months has been economic to prospective employees: Procurement & Fit-out, Flexible Space, User Experience and Technology. uncertainty, according to the 2. Flexible Space – On the rise 1. Procurement & Fit-Out – CBRE 2019 EMEA Occupier There is continued growth in corporate Survey. This is particularly true Towards more user-friendly buildings demand for flexible space, with 45% of In last year’s survey, cost-reduction was the for those in the professional companies expecting to make significant use single most important driver of corporate services industry, although of flexible space over the next three years, real estate strategy, with employee challenges vary across compared with 25% currently in use. engagement coming fourth. This year cost reduction has dropped to fourth position, different sectors: technology The main motives for utilisation of companies are most concerned employee engagement has risen to second flexible workspace are cost reduction and and talent attraction and development to with workforce/talent accommodating short-term demand increases. third. In short, people are becoming an preferences, whereas banking increasingly important consideration.

However the use of flexible space for attracting and finance companies see and retaining talent is becoming a key agenda It looks increasingly as though buildings item. Nearly a further third of employers see it technology as the main that offer an adaptable mix of fit-out types, as a way of testing alternate workspace models. challenge and for life sciences, traditional vs. flexible space, diverse working Companies increasingly view flexible space the main concern is tightening environments, price points and amenity. as a way of supporting their talent agenda, These, as well as those which are technology regulation and legislation. and in many cases are still at an experimental enabled, will compete best for occupiers.

stage of deciding the best approach.

We anticipate that hybrid solutions offering a balance of dedicated offices, meeting spaces and small co-working areas will prove increasingly popular. Over 50% of professional services companies intend to make significant use of hybrid space over the next three years compared to only 30% of life science companies.

60%

would pay at least 10% over Grade A prime rents for high-amenity 'service agreement' space 3. Enhanced User Experience Currently only a third of organisations have a formal User Experience (UX) strategy or plan to introduce one. For those that do, 63% view it as a key competitive advantage and nearly half see it as part of a wider change programme.

Over a third of organisations have plans to hire a UX lead, so it seems likely that the number of formal UX programmes will rise.

The priorities are again people focused; improved collaboration; productivity gains and talent retention and attraction.

The emphasis on aspects of environment such as thermal comfort, security and amenities point towards a current focus on the physical elements of the building.

Although community elements, for instance internal events and volunteering opportunities, attract a much lower rating these aims are often satisfied by other means.

We expect formal UX programmes to become both more widely adopted and much more extensive in their scope.

4. Technology – Aligning technology and talent Technology strategy involving buildings, skills and process design continues to be a major area of focus. 60% of companies expect technological innovation to have a high or very high impact on their operations over the next three years. 85% ranked artificial intelligence and machine learning in their top three technology concerns.

70% intend to raise their level of investment in real estate technology in the next few years. This is particularly the case for banking & finance companies.

Currently the two most popular real estate technologies are smart building sensors for occupancy management and energy management controls. By contrast, future intentions for real estate technology investment focus on occupant navigation apps and Internet of Things, both of which are more people-centric applications. *Source: CBRE’s 2019 EMEA Occupier Survey For more detail please contact ANDREW BLACKWELL CBRE, Workplace Consultancy t: +44 (0)7964 566 960 e: andrew.blackwell@cbre.com

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EMEA FIT-OUT COST GUIDE

45%

expect to have significant use of flexible offices by 2021

28%

see the use of flexible space as a way of attracting and retaining talent

50%

of professional services companies intend to make significant use of hybrid space

60%

expect technological innovation to have a high or very high impact on their operations

70%

plan to increase real estate technology investment

CBRE PROJECT MANAGEMENT

4

TRADITIONAL VS. AGILE WORKPLACE The terms ‘traditional’ and ‘agile’ refer here to the design of office interiors, usually reflecting the function and culture of the occupying organisation. There is, of course, a broad spectrum of workplace models in existence across the region, but these can be distilled broadly into these two types.

TRADITIONAL

AGILE

The traditional layout is characterised by the space having a large number of private offices, the size, location and specification of which are determined by the occupier’s status within the organisation. Executive assistants typically sit directly outside their managers’ offices, while the rest of the workforce is accommodated either in open plan or group rooms with no desk sharing. Desks tend to be large and often incorporate furniture screens to provide an element of privacy.

The agile layout is characterised by a wide range of work settings which support ‘activity based working’. This is a shared working environment with few, if any, desks or rooms allocated to individuals. Personal lockers are provided in place of under-desk pedestals.

There is usually a high dependency on paper storage in these environments and little in the way of supplementary workspaces, apart from a suite of predominantly large meeting rooms.

The space is designed to foster high-levels of interaction and knowledge sharing by providing a wide choice of meeting spaces, both open and enclosed. A number of small rooms and semi-enclosed spaces support the need for individual focused work. The emphasis of the agile workplace is very much on the user experience and the wellness and wellbeing of employees. The space itself is designed to be flexible, adaptable and dynamic.

LAYOUTS This guide presents general arrangements of an office floor plate of 1,000 sq m (10,764 sq ft) usable area to suit both traditional and agile ways of working.

Area schedule

Traditional

Space Designation

Net Area (sq m)

Work Settings

Open plan desks

299

47

Desks in shared room

85

12

Private offices

133

7

Meeting rooms

146

7

Informal meeting spaces

18

2

Tea point

14

-

Support space

51

-

Reception

42

-

Circulation space

212

-

1,000

75

Agile

AGILE Space Designation

Net Area (sq m)

Work Settings

365

70

Study pods (open plan)

70

14

Meeting rooms

110

8

Quiet rooms

24

4

Informal meeting spaces

44

4

Coffee lounge

60

5

Recreation room

10

-

Support space

35

-

Reception/lounge

70

-

Circulation space

212

-

1,000

105

Open plan desks/benches

Total

EMEA FIT-OUT COST GUIDE

It is likely many businesses will choose a hybrid of the two working styles depending on their needs and operations. The three specification levels – low, medium and high – are outlined in the following pages and are compatible with either layout.

TRADITIONAL

Total

5

The workplace settings in the traditional layout focuses more on private work settings.

The agile layout reflect the collaborative and flexible work environment.

CBRE PROJECT MANAGEMENT

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LOW SPECIFICATION ASSUMPTIONS

RECEPTION

Internal partitions • Predominantly medium acoustic rated plasterboard partitions (single-skin construction) • Single glazed partitions to meeting rooms with solid timber door sets • Fixed plasterboard wall instead of movable walls Wall finish • Painted dry lined partitions throughout • Painted feature walls to lift lobby and reception Floor finish • Medium grade carpet tiles to open plan offices, lift lobby, reception, collaboration and client facing areas • Vinyl floor finish to coffee lounge/tea points COFFEE LOUNGE

Ceiling finish • Re-use existing ceilings • Plasterboard margins to meeting rooms Fittings, furniture and equipment • Proprietary joinery with laminate finish to copy/print areas and tea points • Non-bespoke reception desk Mechanical • Minimal modifications to the existing space heating/cooling • Minimal modifications to the existing air treatment Electrical • Existing lighting to be re-used and reconfigured to suit new layout • New pendant luminaires above reception desk

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EMEA FIT-OUT COST GUIDE

WORKPOINTS

MEETING ROOM

COLLABORATION AREA

CBRE PROJECT MANAGEMENT

8

MEDIUM SPECIFICATION ASSUMPTIONS

RECEPTION

Internal partitions • Increased use of glazed partitions instead of plasterboard • Acoustic-rated single glazed partitions to meeting rooms with framed glazed door sets • Acoustic treatment to partitions (double-skin construction with acoustic infills) • Hardwood veneer and medium acoustic rated manually operated movable walls Wall finish • Painted dry lined partitions throughout • Painted feature wall to client facing meeting rooms • Back painted glass feature walls to lift lobby and reception • Floor to ceiling photo/graphics wallpaper applied in four locations Floor finish • Medium-grade carpet tiles to open plan offices, collaboration and client facing areas • Ceramic tiles to lift lobby, reception and coffee lounge/tea points

COFFEE LOUNGE

Ceiling finish • New feature plasterboard ceilings to reception, lift lobby, client-facing areas and coffee lounge • Plasterboard margins to meeting rooms Fittings, furniture and equipment • Resin top finish to tea points with high gloss laminate cupboards • Proprietary laminate joinery for copy/print joinery • Bespoke hardwood and glass reception desk Mechanical • Moderate modifications to the existing space heating/cooling and air treatment

WORKPOINTS

MEETING ROOM

COLLABORATION AREA

Electrical • Existing lighting to be re-used and reconfigured to suit new layout, supplemented by new luminaires to collaboration spaces • Specialist lighting to reception, client facing and coffee lounge spaces • Modifications to existing BMS and lighting controls

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EMEA FIT-OUT COST GUIDE

CBRE PROJECT MANAGEMENT

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HIGH SPECIFICATION ASSUMPTIONS

RECEPTION

Internal partitions • Increased use of glazed partitions instead of plasterboard • High acoustic rated double glazed partitions to meeting rooms with framed glazed door sets • Acoustic treatment to partitions (slab-to-slab construction or acoustic infills above ceiling and within floor void) • Hardwood veneer and high acoustic rated semi-automatic movable walls Wall finish • Painted dry lined partitions throughout • Applied finishes to feature walls in client meeting rooms • Stone feature walls to lift lobby • Video wall to reception • Floor to ceiling photo/graphics wallpaper applied in four locations

COFFEE LOUNGE

Floor finish • High grade carpet tiles to open plan offices, collaboration and client facing areas • Porcelain tiles or stone to lift lobby and reception • Hardwood flooring to coffee lounge/tea points Ceiling finish • New feature timber raft ceiling to reception and client facing meeting rooms • New feature plasterboard ceilings to lift lobby, internal meeting rooms and coffee lounge with plasterboard margins • New metal plank ceiling system throughout office space Fittings, furniture and equipment • Resin top finish to tea point with high gloss laminate cupboards • Specialist joinery for copy/print areas • Bespoke joinery construction (encasement) for video wall to reception • Booth seating (adjacent to reception) built as joinery item rather than as furniture solution • Bespoke illuminated glass and stainless steel reception desk with integrated data and power

WORKPOINTS

MEETING ROOM

COLLABORATION AREA

Mechanical • Moderate modifications to the existing space heating, cooling and air treatment • Local temperature control /adjustment in meeting rooms and booths Electrical • Existing lighting re-used and part new lighting to office areas • High-end specialist lighting to reception, client facing, collaborative and coffee lounge spaces • Modifications to BMS and lighting controls with scene setting 11

EMEA FIT-OUT COST GUIDE

CBRE PROJECT MANAGEMENT

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PRICING ASSUMPTIONS A detailed quantity measure has been carried out on the traditional and agile layouts for the three levels of specifications (low, medium and high).

These layouts have been priced locally within each market to capture the costing information along with typical procurement and programme data. Prices for each of the 64 EMEA locations identified in this guide are based on the following assumptions: • The building is located in a central business district • The space leased is in good CAT A condition and costs are based on a full new CAT B fit-out • Costs take into account a reconfiguration of existing CAT A installations to suit the CAT B design and upgrades where stated in the specification • The base building and CAT B design are considered to hold no abnormalities • The costs assume that the base-build and landlord provided CAT A has the necessary infrastructure (e.g. sufficient HVAC and power) to support the intended fit-out

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EMEA FIT-OUT COST GUIDE

CBRE London Office

• This is a generic design which does not take into account cultural differences and country specific space planning considerations or local regulations • The base date for the pricing information in this document is August 2019 • All pricing is in Euros and exchange rates are accurate to August 2019 • Pricing is based on the construction costs for the agile layout. The cost variance with the traditional layout is marginal; as a benchmark (from data collection) the traditional layout construction costs are on average 5% more expensive

CATEGORY A FIT-OUT (WARM SHELL)

CATEGORY B FIT-OUT (TENANT FIT-OUT)

• Raised access floor • Suspended ceiling • Mechanical and electrical services above the ceiling from the riser to suit an open plan regular grid • Decoration/finishes to the internal face of the perimeter and core walls • Blinds

• Upgrades to landlord’s CAT A provisions • Adaption of suspended ceiling, raised floor and M&E to coordinate with final tenant layout • Installation of floor boxes, below-floor power and data cabling • Tenant improvements including internal partitioning, joinery, floor, wall and ceiling finishes • Corporate branding, statutory, wayfinding and safety signage • IT provisions • Security installations • Audio visual equipment • Furniture

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CAT B CONSTRUCTION COSTS (READY RECKONER) COUNTRY

The CAT B cost data for the three levels of fit-out specification have been normalised across all locations for the agile layout.

Using this data, the adjacent table outlines the CAT B construction costs of the 1,000 sq m agile layout illustrated on pages 6 – 12.

Our pricing data indicates that the traditional layout is on average 5% more expensive due to increased partitioning and M&E associated with greater cellularisation of the space.

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EMEA FIT-OUT COST GUIDE

CITY

LOW SPECIFICATION

MEDIUM SPECIFICATION

HIGH SPECIFICATION

CONSTRUCTION INFLATION

(€ / sq m)

(€ / sq m)

(€ / sq m)

%

COUNTRY

CITY

LOW SPECIFICATION

MEDIUM SPECIFICATION

HIGH SPECIFICATION

CONSTRUCTION INFLATION

(€ / sq m)

(€ / sq m)

(€ / sq m)

%

Angola

Luanda

995

1,194

1,830

8 – 12%

Luxembourg

Luxembourg

606

786

1,128

1 – 2%

Austria

Vienna

547

670

1,022

3 – 4%

Morocco

Casablanca

402

502

749

2 – 4%

Belgium

Brussels

436

551

847

1 – 2%

Netherlands

Amsterdam

650

800

1,090

4 – 6%

Botswana

Gaborone

752

896

1,368

5 – 7%

Nigeria

Abuja

1,089

1,445

2,048

8 – 12%

Bulgaria

Sofia

320

498

682

2 – 4%

Norway *

Oslo

697

1,100

1,667

1 – 3%

Croatia

Zagreb

445

540

782

1 – 3%

Oman

Muscat

672

877

1,271

2 – 4%

Czech Republic

Prague

395

506

759

2 – 3%

Poland

Warsaw

486

604

863

5 – 6%

Denmark *

Copenhagen

588

728

1,192

0 – 1%

Portugal

Lisbon

454

608

922

1 – 3%

Egypt

Cairo

525

783

1,142

10 – 15%

Qatar

Doha

782

1,072

1,516

2 – 4%

Estonia

Tallinn

431

522

857

2 – 3%

Romania

Bucharest

346

468

751

5 – 8%

Ethiopia

Addis Ababa

768

917

1,409

8 – 12%

Russia

Moscow

480

625

1,000

3 – 6%

Finland *

Helsinki

775

928

1,382

1 – 3%

Saudi Arabia

Riyadh

725

930

1,336

2 – 4%

France

Paris

737

890

1,384

2 – 3%

Serbia *

Belgrade

340

418

648

1 – 3%

Germany *

Berlin

686

884

1,369

1 – 3%

Slovakia *

Bratislava

319

528

690

1 – 3%

Germany *

Frankfurt

748

899

1,391

1 – 3%

South Africa

Cape Town

556

711

1,085

4 – 6%

Germany *

Hamburg

765

920

1,423

1 – 3%

South Africa

Johannesburg

551

704

1,075

4 – 6%

Germany *

Munich

783

941

1,456

1 – 3%

Spain

Barcelona

500

578

882

1 – 3%

Germany *

Stuttgart

750

913

1,412

1 – 3%

Spain

Madrid

506

611

913

1 – 3%

Ghana

Accra

860

1,033

1,662

8 – 10%

Sweden *

Stockholm

736

884

1,369

2 – 4%

Greece

Athens

327

400

640

0 – 2%

Switzerland

Geneva

896

1,129

1,636

0 – 1%

Hungary *

Budapest

496

647

1,007

3 – 6%

Switzerland

Zurich

894

1,129

1,636

0 – 1%

Ireland

Dublin

550

660

1,033

5 – 7%

Turkey

Istanbul

361

472

669

12 – 17%

Israel

Tel Aviv

567

794

1,152

1 – 3%

UAE

Abu Dhabi

741

903

1,401

2 – 4%

Italy

Milan

531

669

1,062

0 – 1%

UAE

Dubai

741

903

1,401

2 – 4%

Italy

Rome

554

651

1,054

0 – 1%

Uganda

Kampala

906

1,082

1,656

3 – 6%

Ivory Coast

Abidjan

1,051

1,281

1,967

3 – 6%

UK

Aberdeen

485

594

891

2 – 4%

Kazakhstan

Almaty

469

552

886

7 – 9%

UK

Belfast

416

530

817

2 – 4%

Kenya

Nairobi

780

950

1,416

7 – 9%

UK

Glasgow

485

594

891

2 – 4%

Kuwait

Kuwait City

708

938

1,358

2 – 4%

UK

London

592

734

1,161

2 – 4%

Latvia

Riga

474

555

793

1 – 3%

UK

Manchester

485

594

891

2 – 4%

Lebanon

Beirut

690

840

1,303

5 – 7%

Ukraine

Kiev

362

477

748

5 – 8%

Lithuania

Vilnius

543

632

953

2 – 4%

Zambia

Lusaka

765

907

1,342

6 – 9%

NOTE All prices have been aligned to show CAT B construction costs only.

Includes: internal partitions, M&E reconfiguration, doors and ironmongery, wall, floor and ceiling finishes, specialist joinery, fixtures and fittings, structured cabling and comms room fit-out, internal signage, branding, contractor preliminaries and overhead and profit.

Excludes: technology (page 17), furniture (page 21), professional fees (page 24), contingencies and taxes.

* CAT B construction works may be delivered by the landlord in these locations and associated costs could be factored in the lease agreement.

All costs shown are in sq m, to convert these to sq ft: 1 sq m = 10.764 sq ft.

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TECHNOLOGY AND THE EVOLUTION OF OFFICE SPACE A digitally enabled office is no longer the domain of tech giants, but of businesses across all sectors. Companies must accept that what was once optional, is now inevitable.

Office space is now a service, made to fit business strategies where productivity is synonymous with technology enabled collaboration, and employees demand modern conveniences and seamless technology integration so they can focus on the tasks at hand. Driving this technology investment shift is the demand for a unified visual display and communication platform.

To collaborate, people need places to connect.

However this is a fundamental need and employees are demanding more from their workplace; they expect high-speed Wi-Fi, wireless charging, personalisation, online room booking, environmental controls and so on, hence companies evolving to deliver these in order to attract and retain talent.

As a result, 70% of companies plan to increase investment in real estate technology within the next three years, and 30% see smart building technology as a factor in choosing a building1.

Investment in workplace technology was growing steadily for several years until, unexpectedly, in 2018 we saw a doubling of spend in workplace technology.

This can be attributed to a combination of increased adoption and implementation of workplace strategy, and environments being designed for collaboration.

PTS Consulting has reported that technology spend on office projects has increased 200% in the last 18 months.

In market-leading technology projects, it is not usual for technology spend allocation to account for up to 40% of the total budget.

It is important to note that although office space saw expected inflationary increase in cost between 2015 and 2017, the sharp rise in 2018 is due in large part to the notable increase in technology specification.

The technology to create a more efficient workplace is now in our hands, or more accurately, in our smartphones. To achieve corporate goals, company strategies have to drive the technology which should be designed and oriented to support how we work, how we connect with colleagues, and how to make routine and administrative actions simple, allowing greater productivity. The step-change of unified communication and display technology in commercial offices is just the beginning.

The next step-change in technology investment spending could be just around the corner.

Technology enabled Internet of Things (IoT) devices make it possible to collect data from all aspects of the corporate office, including BMS, security, lighting, meeting rooms and furniture to name a few. All are sources of data; however, it is not until information is analysed and used properly that it benefits people and the business. In smart offices, data can and is being collected to help create a more efficient workplaces and reduce carbon footprints.

Strategies to achieve business goals are being rewritten. The goals of productivity and profitability remain; however, the journey and the platform to achieve these are changing. Companies are asking: • What does 'smart' building mean for me?

• What does 'smart' office mean for my business?

• What is our 'smart' vision and how does this support our corporate strategies?

Answering these questions and developing a technology brief that supports corporate strategies will provide the basis for developing 'space as a service' and the journey towards developing a suitable smart office.

The commercial office industry is recognising technology as a core requirement of an attractive, collaborative work environment. Due to the criticality of integrated technologies and smart workplaces, there's an increasing demand for project management teams with the right technical skillset to get the brief, budget, design and implementation right. This is important when a 'result-oriented workforce' demands a superior knowledge-based work environments that improve productivity and allow connection, collaboration and inspiration. These effects also reach landlords who want to have desirable assets. Demands have evolved from sustainable and green buildings to providing infrastructure to accommodate smart offices.

We are transitioning to a new office experience that demands an evolution of the standard commercial building and transformation of our physical space.

EMEA FIT-OUT COST GUIDE

Tenants’ IT installations typically include structured cabling (included in the Cat B construction costs), wired and wireless network equipment.

Desktop and laptop computers, multiple monitors and desk phones are considered user’s equipment and typically don’t sit within the fit-out budget; however, the placement of these components is essential to any workplace strategy. Clients’ existing equipment may not enable changes in the working styles and practices that are often the driving force behind office relocations, so proper advice should be taken on how to engage with the latest technology early in the planning stages.

Wi-Fi technology is sufficiently reliable as a primary method of connectivity for user devices within an agile working environment, but there will always be a requirement for a structured cabling system. Structured cabling will typically be installed within the raised floor and ceiling void to provide connection for fixed IT, AV, security and other IP (Internet Protocol) based products. The growth in integrated and smart buildings is motivating an increase in IP devices that are network connected.

This will need to be given due consideration when producing technology budgets.

As more and more systems become IP-based the reliance on connectivity to the Local Area Network (LAN) means that switches and firewalls are typically procured new rather than relocated during an office move.

One of the drivers for this is that contractors are reliant on network connectivity to commission IP-based building systems.

Wireless access points installed within or beneath the ceiling void will provide users with connectivity to the Internet and the resources they need to work anywhere within the office. Full Wi-Fi coverage within the office is a key requirement for traditional and agile office working environments.

It is critical that IT budgeting is considered early in the project and with a holistic view in order to achieve the savings that smart building technology, the Internet of Things (IoT) and systems can offer.

IT COST

(Excludes taxes and contingency)

€65 – €125 / sq m

For more detail please contact

[1] EMEA Occupier Survey, CBRE, 2019

17

IT

PTS Consulting contactus@ptsconsulting.com

These technology benchmarks are in line with the specifications outlined in this guide for a 1,000 sq m fit-out. Please note that import taxes may be applicable and actual client requirements can vary and may sit outside of these benchmark ranges depending on specific technology requirements and size of fit-out.

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SECURITY

AUDIO VISUAL

Occupier security systems normally consist of electronic access control and CCTV.

The use of Audio Visual (AV) continues to rise in commercial real estate to facilitate improved collaboration between offices.

This rapidly advancing technology is now included as standard specification in meeting rooms and huddle spaces.

In traditional spaces, AV systems are found in meeting room areas only. The increase in available technology such as Microsoft Teams, Webex and Zoom should be taken into consideration in new project developments to ensure the user experience is maximised.

In agile office environments, AV is used across the office space to create a range of platforms that enable users to connect and collaborate.

The below matrix provides an overview of the core AV infrastructure and installations which users can expect to find in each specification level.

Both systems will typically connect over the structured cabling and network infrastructure.

This removes the need for multiple types of cable and provides opportunities to interface the security systems with other Internet Protocol (IP) based systems. This enables data to be collated, and workflows created, thus forming the basis of a smart building.

The access control and CCTV systems monitor the points of entry into the tenant’s office demise and secure areas including the server rooms, HR offices, confidential spaces or secure storage.

In a multi-tenanted building, the landlord will have installed security systems to manage access to the main building and common areas. The tenant security system can operate as a standalone system or interface with a compatible landlord system. This can streamline system administration and enhance the visitor management process.

SECURITY COST

(Excludes taxes and contingency)

€40 / sq m

TRADITIONAL AV SPECIFICATION DESCRIPTION Space type

Low

Medium

High

Space type

Low

Medium

High

Reception area

Company information or brand specific content displayed on LED signage screen

Multiple LED screens displaying specifically developed content

Video wall or bespoke AV installation providing bespoke or real-time information specific to client brand

Reception area

Company information or brand specific content displayed on LED signage screen

Multiple LED screens displaying specifically developed content

Video wall or bespoke AV installation providing bespoke, interactive or real-time information specific to client brand

Desk area

No AV

TV screen fed direct from building TV distribution

TV/signage screen fed from client IPTV or signage system

Desk area

No AV

TV screen fed direct from building TV distribution

Lift lobby

No AV

TV screen fed direct from building TV distribution

TV/signage screen fed from client IPTV or signage system

TV/signage screen fed from client IPTV or signage system

Large meeting rooms

Single LED screen with wired presentation facilities and a desktop conference phone

Dual LED screen with the addition of wireless presentation system, touch screen controls and built in audio conferencing with ceiling speakers

As per the medium specification with the addition of HD video conferencing and interactive collaboration tools such as touch screen LED screens

Lift lobby

No AV

TV screen fed direct from building TV distribution

TV/signage screen fed from client IPTV or signage system

Large meeting rooms

Single LED screen with wired presentation facilities and a desktop conference phone

Medium meeting room

Single LED screen with wired presentation facilities and an IP conference phone

Single LED screen with wireless presentation facilities and an IP conference phone

Interactive touch screen with wireless presentation and IP conference phone and VC camera

Dual LED screen with the addition of wireless presentation system, touch screen controls and built in audio conferencing with ceiling speakers

Small meeting rooms

No AV

IP desk phone

IP desk phone and VC camera

Medium meeting room

Single LED screen with wired presentation facilities and an IP conference phone

Comms room

Centralised AV equipment

Centralised AV equipment

Centralised AV equipment

Small meeting rooms

No AV

Single LED screen with wireless presentation facilities and an IP conference phone IP desk phone

As per the medium specification with the addition of HD video conferencing and interactive collaboration tools such as interactive touch screen LED screens Interactive screen with wireless presentation and IP conference phone and VC camera IP desk Phone and VC camera

Informal meeting spaces

No AV

Content sharing screens

Content sharing and collaboration screens

Alternative workspaces

Large LED screen with wireless presentation wipe clean whiteboard

Wireless presentation to large LED Screen, video and audio conference enabled

Comms room

Centralised AV equipment

Centralised AV equipment

Interactive whiteboard, LED screen and collaboration facilities with immersive features Centralised AV equipment

AV COST – TRADITIONAL

AV COST – AGILE

Low €60/sq m Medium €100/sq m High €180/sq m

Low €85/sq m Medium €130/sq m High €245/sq m

(Excludes taxes and contingency)

19

EMEA FIT-OUT COST GUIDE

CBRE Milan Office

AGILE AV SPECIFICATION DESCRIPTION

(Excludes taxes and contingency)

CBRE PROJECT MANAGEMENT

20

FURNITURE Using physical elements to de-stress the workplace.

FURNITURE BENCHMARK COSTS Low Specification (€ / sq m)

Medium Specification (€ / sq m)

High Specification (€ / sq m)

Traditional

95

120

165

Agile

145

175

220

As employers grapple with rising healthcare costs, an area historically often overlooked as contributing to employee health and well-being is the workplace. Aside from lunchtime yoga and salads on the cafeteria menu, the approach to well-being at work often fails to look at the bigger picture and address the underlying issues that contribute to poor health: a sedentary lifestyle and work-related stress.

SO HOW CAN A BUILDING MAKE PEOPLE HEALTHIER?

COUNTRY

With training in psychology and architecture, Haworth’s Dr. Michael O’Neill has spent decades researching the connection between buildings, worker health and performance. He advocates for a combination of 'nudge' and 'micro-controls' that help employees make better decisions.

NUDGE BETTER BEHAVIOURS

GIVE EMPLOYEES CONTROL

REDUCE STRESS LEVELS

A nudge is never about taking choice away from somebody. It’s about making the best obvious and easy choice. One way to nudge people to make a healthier choice is by encouraging them to ditch the lift in favour of climbing stairs.

Another way to reduce workplace stress is to give people control over their physical workspace and furnishings.

Beyond movement and healthier choices, the interior design of a building can play a role in reducing stress. A person’s body reacts automatically to stressful events, like deadlines, by releasing hormones into the bloodstream. The most dangerous is cortisol, part of the body’s natural fight-orflight mechanism. Elevated cortisol levels are tied to a host of health issues, from heart disease to lower cognitive abilities.

A Harvard study found that taking eight flights of stairs a day lowers average early mortality risk by 33 percent. The key is making the staircase a central element in the building, so people are drawn to take the steps.

MARTIN EVETTS General Manager, UK & Ireland t: +44 (0)7894 255 672 e: martin.evetts@haworth.com

21

EMEA FIT-OUT COST GUIDE

At the individual level, it can involve letting people choose a space for the task at hand, so they can do their best individual work and or providing furnishings that can be moved to adjust to someone’s body or workstyle. The move to agile working has radically changed the furniture solution offered in the workplace in recent years, with team spaces, individual work stations, focus rooms and more variety of work settings on offer for employees, depending on the task at hand. Height-adjustable desks and shared storage not only allow people to work how and where best suits them, but also encourage movement around the office.

At the organisational level, culture and policies should be put in place which give employees permission to choose a range of workspaces that best meets their needs.

Providing opportunities to connect to nature in the workplace can help. Studies have shown that taking at least 20 minutes out of your day to stroll or sit in a place that makes you feel connected with nature will significantly lower stress hormone levels.

Giving workers power over small adjustments in their individual work environment, and creating an office environment which encourages movement, not only increases collaboration, but ultimately enhances wellbeing across an organisation.

INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

Angola

varies

varies

varies

varies

Lithuania

6%

9%

0%

6

Austria

8%

2%

0%

5

Luxembourg

6%

4%

0%

5

Belgium

6%

4%

0%

5

Morocco

15%

15%

25%

8

Botswana

9%

30%

20%

14

Netherlands

6%

4%

0%

5

Bulgaria

8%

6%

0%

5

Nigeria

varies

varies

varies

varies

Croatia

7%

8%

0%

6

Norway

8%

12%

0%

6

Czech Republic

6%

5%

0%

7

Oman

8%

20%

5%

12

Denmark

8%

8%

0%

5

Poland

6%

9%

0%

5

Egypt

8%

24%

60%

12

Portugal

6%

4%

0%

5

Estonia

6%

9%

0%

6

Qatar

7%

20%

5%

11

Ethiopia

9%

30%

30%

14

Romania

7%

10%

0%

5

Finland

8%

12%

0%

6

Russia

6%

14%

25%

8

France

6%

4%

0%

14

Saudi Arabia

8%

20%

20%

12

Germany

6%

2%

0%

5

Serbia

8%

14%

20%

6

Ghana

9%

24%

20%

12

Slovakia

6%

9%

0%

7

Greece

8%

16%

0%

6

South Africa

8%

21%

20%

12

Hungary

6%

9%

0%

6

Spain

6%

8%

0%

5

Ireland

6%

6%

0%

6

Sweden

8%

10%

0%

6

Israel

8%

20%

12%

8

Switzerland

8%

8%

0%

5

Italy

8%

6%

0%

5

Turkey

8%

12%

7%

6

Ivory Coast

9%

24%

20%

14

UAE

7%

20%

5%

11

Kazakhstan

7%

24%

15%

9

Uganda

9%

30%

25%

14

Kenya

9%

30%

25%

12

UK

6%

6%

0%

6

Kuwait

9%

20%

5%

12

Ukraine

8%

12%

0%

8

Latvia

6%

9%

0%

6

Zambia

9%

30%

25%

14

Lebanon

9%

20%

50%

8

COUNTRY

CBRE PROJECT MANAGEMENT

22

PROFESSIONAL FEES An estimate of professional fees can be calculated based on a percentage of capital costs for appointments.

On a typical project of this size and complexity, the expected professional fees include architectural design, M&E services design, project management, cost management and others (including acoustician, building control and planning). These services will provide design, consultancy and management required to deliver a project from inception through to project closeout.

The adjacent fees are typical for a CATÂ B fit-out project of 1,000 sq m.

Please note that these fees can vary depending on project specifics, complexity, procurement route, size and scope of appointment. The fees specified in this table exclude brokerage fees, client insurances, legal fees and transaction management.

COUNTRY

FEES (% OF PROJECT COSTS)

COUNTRY

FEES (% OF PROJECT COSTS)

Angola

22%

Lithuania

10%

Austria

18%

Luxembourg

18%

Belgium

18%

Morocco

14%

Botswana

19%

Netherlands

18%

Bulgaria

17%

Nigeria

22%

Croatia

21%

Norway

19%

Czech Republic

17%

Oman

18%

Denmark

26%

Poland

17%

Egypt

15%

Portugal

15%

Estonia

14%

Qatar

18%

Ethiopia

17%

Romania

18%

Finland

16%

Russia

12%

France

18%

Saudi Arabia

17%

Germany

26%

Serbia

17%

Ghana

20%

Slovakia

15%

Greece

19%

South Africa

18%

Hungary

15%

Spain

18%

Ireland

14%

Sweden

18%

Israel

14%

Switzerland

25%

Italy

17%

Turkey

17%

Ivory Coast

21%

UAE

19%

Kazakhstan

19%

Uganda

20%

Kenya

20%

UK

17%

Kuwait

18%

Ukraine

16%

Latvia

16%

Zambia

19%

Lebanon

18%

A matrix to assist clients to build their own budget using the cost data provided in this guide can be found on page 41.

23

EMEA FIT-OUT COST GUIDE

CBRE Amsterdam Office

CBRE PROJECT MANAGEMENT

24

BUSINESS TRANSITION & MOVE MANAGEMENT Move management and physical relocation of employees and their belongings is an integral part of a CAT B project and takes place during and upon completion of the fit-out works.

Moves have the potential to disrupt business continuity, which can impact productivity.

Careful organisation and sequence planning is essential to minimise disruption. This usually involves a move consultant working with a range of client department representatives to plan for and accommodate activities critical for business continuity and movement of employees, furniture and equipment.

The move consultant is responsible for all aspects of change management and implements a comprehensive communications plan to ensure everyone affected is kept up to date with proposals and has input into the project, ensuring where possible that their needs are met.

They also work with a client-specified physical move provider, or leverage CBRE’s preferred supplier list, acting as principal to command preferential rates.

CBRE’s Business Transition and Move Management service is available globally, with best practice shared across regions and sectors including banking/finance, technology, retail, pharmaceutical, industrial and legal. Using the latest technology, CBRE maintains up-to-date client space allocation data at all times, and workplace specialists work with clients to optimise space utilisation, ensuring best value throughout the project and a successful outcome.

SAME FLOOR (€ PER PERSON)

BETWEEN FLOORS* (€ PER PERSON)

BETWEEN BUILDINGS** (€ PER PERSON)

Crate only (personal effects)

€ 30

€ 35

€ 40

Crate plus desk move

€ 45

€ 55

€ 85

Crate plus desk and desktop IT move

€ 60

€ 85

€ 145

TYPE OF MOVE

Beyond business transition, clients often require clearing or disposal of redundant furniture and fittings. CBRE's accreditation to BS EN ISO 14001 provides an environmental management system that allows management of the entire clearance process on a client's behalf. CBRE seeks to re-use, re-purpose, donate or environmentally dispose of surplus furniture and effects, taking full legal responsibility and promoting client corporate social responsibility.

For more detail please contact MARTIN ATKINSON Head of Business Transition & Move Management, EMEA t: +44 (0)7798 656 127 e: martin.atkinson@cbre.com

* Within the same building with full use of a lift/elevator ** New location within 10 miles of original building

25

EMEA FIT-OUT COST GUIDE

CBRE Milan Office

CBRE PROJECT MANAGEMENT

26

REINSTATEMENT Key Assumptions

Lease reinstatement (also known as ‘dilapidations’) is the process whereby tenants are obliged to restore the space to a pre-agreed state at the end of the lease term.

A tenant’s liability is defined by the terms of the individual lease and the nature of local property markets. In some countries where the landlord provides the fit-out, they will take on most obligations to repair it, reflecting the cost in the rent. In others, the tenant is responsible for reversing any alterations made.

COUNTRY

CITY

RATE (€ / SQ M)

TOTAL LEASE (€)

LEASE LIABILITY ASSUMPTION

COUNTRY

CITY

RATE (€ / SQ M)

TOTAL LEASE (€)

LEASE LIABILITY ASSUMPTION

Angola

Luanda

€7

€ 7,000

Re-decoration and clearing of space

Netherlands

Amsterdam

€ 12

€ 12,000

Re-decoration and clearing of space

Austria

Vienna

€ 120

€ 120,000

Full removal of fit-out

Nigeria

Abuja

€ 140

€ 140,000

Full removal of fit-out

Belgium

Brussels

€ 175

€ 175,000

Full removal of fit-out and repair

Norway

Oslo

€ 18

€ 18,000

Re-decoration and clearing of space

Botswana

Gaborone

€ 110

€ 110,000

Full removal of fit-out

Oman

Muscat

€ 175

€ 175,000

Full removal of fit-out

The lease defines the tenant’s reinstatement liability. However, a landlord may or may not enforce the terms of the lease and instead decide to accept a financial settlement. In some locations it is not the culture to pursue potential claims. As a result, leases and responsibilities are rarely alike and generalising is difficult.

It is, therefore, important to review each case individually and note that the figures in the adjacent table will not reflect every situation.

Croatia

Zagreb

€7

€ 7,000

Re-decoration and clearing of space

Poland

Warsaw

€ 35

€ 35,000

Re-decoration and clearing of space

Czech Republic

Prague

€7

€ 7,000

Re-decoration and clearing of space

Portugal

Lisbon

€ 95

€ 95,000

Full removal of fit-out

Denmark

Copenhagen

€ 200

€ 200,000

Full removal of fit-out

Qatar

Doha

€ 210

€ 210,000

Full removal of fit-out and repair

Egypt

Cairo

€9

€ 9,000

Re-decoration and clearing of space

Romania

Bucharest

€ 90

€ 90,000

Full removal of fit-out

Ethiopia

Addis Ababa

€ 125

€ 125,000

Full removal of fit-out

Russia

Moscow

€ 75

€ 75,000

Re-decoration and recarpeting

Finland

Helsinki

€ 18

€ 18,000

Re-decoration and clearing of space

Saudi Arabia

Riyadh

€ 175

€ 175,000

Partial removal of fit-out (often negotiated)

France

Paris

€ 185

€ 185,000

Full removal of fit-out and repair

Serbia

Belgrade

€ 160

€ 160,000

Full removal of fit-out and repair

Germany

Berlin

€ 120

€ 120,000

Full removal of fit-out and repair

Slovakia

Bratislava

€ 95

€ 95,000

Full removal of fit-out and repair

Here, the likely nature of the lease reinstatement obligations has been identified and the typical cost of completing works to comply with the tenant’s responsibilities has been calculated, assuming moderate wear based on a 1,000 sq m office.

Germany

Frankfurt

€ 130

€ 130,000

Full removal of fit-out and repair

South Africa

Cape Town

€ 80

€ 80,000

Full removal of fit-out

Germany

Hamburg

€ 120

€ 120,000

Full removal of fit-out and repair

South Africa

Johannesburg

€ 80

€ 80,000

Full removal of fit-out

Germany

Munich

€ 135

€ 135,000

Full removal of fit-out and repair

Spain

Barcelona

€ 110

€ 110,000

Full removal of fit-out

Germany

Stuttgart

€ 130

€ 130,000

Full removal of fit-out and repair

Spain

Madrid

€ 110

€ 110,000

Full removal of fit-out

International Accounting Standards – IFRS 16

Ghana

Accra

€8

€ 8,000

Re-decoration and clearing of space

Sweden

Stockholm

€ 18

€ 18,000

Re-decoration and clearing of space

Greece

Athens

€ 80

€ 80,000

Full removal of fit-out

Switzerland

Geneva

€ 170

€ 170,000

Full removal of fit-out and repair

From 1 January 2019, new international accounting standards mean companies are obliged to show the assets and liabilities of any lease on their balance sheet. This requires accurate assessment of restoration costs.

Hungary

Budapest

€ 80

€ 80,000

Full removal of fit-out

Switzerland

Zurich

€ 170

€ 170,000

Full removal of fit-out and repair

Ireland

Dublin

€ 175

€ 175,000

Full removal of fit-out and repair

Turkey

Istanbul

€ 14

€ 14,000

Re-decoration and clearing of space

Israel

Tel Aviv

€ 10

€ 10,000

Re-decoration and clearing of space

UAE

Abu Dhabi

€ 200

€ 200,000

Full removal of fit-out

Italy

Milan

€ 175

€ 175,000

Full removal of fit-out and repair

UAE

Dubai

€ 200

€ 200,000

Full removal of fit-out

Italy

Rome

€ 175

€ 175,000

Full removal of fit-out and repair

Uganda

Kampala

€ 135

€ 135,000

Full removal of fit-out

Ivory Coast

Abidjan

€ 140

€ 140,000

Full removal of fit-out

UK

Aberdeen

€ 175

€ 175,000

Full removal of fit-out and repair

Kazakhstan

Astana

€ 10

€ 10,000

Clear space only

UK

Belfast

€ 170

€ 170,000

Full removal of fit-out and repair

Kenya

Nairobi

€ 140

€ 140,000

Full removal of fit-out and repair

UK

Glasgow

€ 180

€ 180,000

Full removal of fit-out and repair

Kuwait

Kuwait

€ 190

€ 190,000

Full removal of fit-out

UK

London

€ 230

€ 230,000

Full removal of fit-out and repair

Luxembourg

Luxembourg

€ 190

€ 190,000

Full removal of fit-out and repair

UK

Manchester

€ 180

€ 180,000

Full removal of fit-out and repair

Morocco

Marrakesh

€ 55

€ 55,000

Full removal of fit-out

Zambia

Lusaka

€ 135

€ 135,000

Full removal of fit-out

There can be huge variance in the estimated quantum of this restoration cost from lease to lease and from country to country. If you hold assets across multiple countries, CBRE’s specialist dilapidations team can help you budget accurately for these liabilities. We can ensure you comply with this aspect of the Lease Accounting Standards and avoid under or overstating these obligations.

27

EMEA FIT-OUT COST GUIDE

1. All tenant chattels (furniture, AV, IT and security, etc.) are removed by the tenant and the cost of removal is therefore excluded from the rates 2. Where stated all tenant fit-out and alterations are to be removed and none are retained by the landlord as improvements 3. No allowance is made for loss of rent, non -recoverable VAT or professional fees not directly related to the reinstatement costs 4. Base date for prices and exchange rates is August 2019 5. All works will be undertaken as a single contract and within normal working hours 6. General wear and tear rather than major disrepair will be present to the floor 7. Tenants are on internal repairing leases and therefore only have a responsibility within their demise which does not extend to any elements of the common parts (structure, frame, sanitary accommodation, windows, central M&E plant) 8. The space was provided on a standard UK CAT A basis with suspended ceilings, raised access floor and carpet 9. No structural reinstatement works are needed For more detail please contact MARK TATLOW Reinstatement Consultancy t: +44 (0)20 7182 3608 e: mark.tatlow@cbre.com

NOTE In some emerging markets lease reinstatement is in its infancy.

Consequently, it is not possible to draw conclusions for the reinstatement estimates for countries not listed on this schedule.

CBRE PROJECT MANAGEMENT

28

PROCUREMENT & PROGRAMME

TYPICAL PROCUREMENT ROUTE AND PROGRAMME Country

Procurement Route

Programme 0

Understanding how a project will be procured, and the length of time required to complete each of the key milestones is critical to developing an accurate business case. Lead times and task durations can vary significantly from one country to the next. This can have a material impact on the viability of a business case and ultimate decision on whether to proceed with a project.

Depending on the location, key parameters to consider include: local standards, procurement strategy, statutory approvals and regulations, lead time, importation, religious festivals and public holidays, as well as internal client approvals and sign-off gateways. This local understanding may prompt a review or a project’s procurement or phasing strategy to maintain and achieve the desired programme, while minimising business impact.

While furniture is often seen as a small part of the overall project, it typically has a major impact on end-user satisfaction, so it is important to understand furniture lead times and any import restrictions to make due allowance for these in the programme.

The impact of Brexit is still unclear and extra consideration may need to be given to projects in the UK. Products are often sourced from across the region and new restrictions may have a tangible impact on lead times and budgets.

PROCUREMENT ROUTES

It is also important to consult IT, Security and AV teams so that install, testing and commissioning periods can be programmed in line with the desired completion date.

Design and Build • Tender documents outlining employer’s requirements are prepared by the client/ consultant team usually in the form of a brief, i.e. performance criteria • Single contractor is appointed who contributes specialist knowledge into design process • Contractor has full design responsibility • Design and construction can occur concurrently

CBRE recommends obtaining professional programme advice as early as possible regarding the delivery strategy. This advice may come from a programme manager at the initial capital planning stage, or a local project manager who can support the transaction team when developing business case strategies.

CBRE’s programme and project specialist teams across EMEA have provided information relating to the key milestones of our medium specification 1,000 sq m fit-out project. The graph overleaf illustrates typical timeframes for completing fit-out using the most common procurement route in each location.

Traditional • Consultant team is appointed by client prepare fully detailed drawings, specifications and pricing documents • Client retains the design risk • Contractor’s design portion can be incorporated • Tendered on construction stage design information • Design and construction are sequential

Construction Management • Client procures design as per the traditional route • Construction manager is appointed to co-ordinate trade contractors • Trade contracts are let on a package by package basis • Client generally retains design and construction risk • Design and construction can occur concurrently

Angola Botswana Egypt Ethiopia Ghana Ivory Coast Kenya Nigeria South Africa Uganda Zambia

Bulgaria Croatia Czech Republic Estonia Hungary Kazakhstan Latvia Lithuania Poland Romania Russia Serbia Slovakia Ukraine

Kuwait Lebanon Oman Qatar Saudi Arabia UAE

Traditional Traditional Traditional Traditional Detail & Build Traditional

Denmark Finland Norway Sweden

Traditional Traditional Traditional Design & Build

Ireland UK

Traditional Traditional / Design & Build

Austria Belgium France Germany Luxembourg Netherlands Switzerland

EMEA FIT-OUT COST GUIDE

40

50

Inception

Construction Handover CENTRAL & EASTERN EUROPE

IBERIA

MIDDLE EAST

NORDICS

SOUTHERN EUROPE & MEDITERRANEAN

UK & IRELAND

WESTERN EUROPE

Construction Management Design & Build Detail & Build Traditional Design & Build Construction Management Traditional

0

29

30

Tender

Construction Management Traditional Detail & Build Construction Management

Greece Israel Italy Turkey

WEEKS

Design

Traditional Traditional Traditional Traditional Traditional Design & Build Traditional Traditional Traditional Traditional / Design & Build Traditional Design & Build Design & Build Construction Management

Design & Build Design & Build Design & Build

20

AFRICA

Traditional Traditional Traditional Design & Build Design & Build Design & Build Design & Build Design & Build Traditional Design & Build Traditional

Morocco Portugal Spain

10

10

20

WEEKS

30

40

CBRE PROJECT MANAGEMENT

50

30

CAPITAL PLANNING 1

The cost of real estate assets is a significant consideration for most businesses, and often investment in real estate is based on ‘triggers’.

These include: lease dates, user requirements, maintenance, regulatory requirements and headcount changes.

Communication Projects are often initiated to solve short-term objectives, and fail to consider how the investment impacts the wider portfolio.

Capital planning, illustrated opposite, is the holistic process of understanding a portfolio of assets, then developing a long-term investment plan for those assets. Through collaboration of real estate teams and the wider organisation, the projects pipeline can be aligned with the organisations wider strategic goals.

This means the right projects are done at the right time for the right reasons. The process starts long before the initiation of any one project and continues beyond completion via continuous reporting of the portfolio’s performance and ongoing occupancy costs.

The main outputs from the capital planning process are: • An optimised pipeline of projects prioritised according to company objectives • Budgets and programmes that align with business requirements and real estate strategies • Forecasted operational expenditure, depreciation and P&L analysis to assist in decision making Effective capital planning can provide a competitive advantage by enabling an organisation to gain a better understanding of its property portfolio, overarching strategy and associacted P&L impact.

This enables better decision making, resulting in improved outcomes.

31

EMEA FIT-OUT COST GUIDE

OUTCOMES

9 Maintain Relationships & Repeat

Although organisations differ, the benefits of capital planning are universal: • Operational expenditure efficiencies • Better understanding of property portfolio and overarching strategy

Communication is key in updating in line with changing business needs

• More informed decisions, resulting in improved investment outcomes • Accurate resource planning • Improved facility management • Economy of scale on purchasing for common project items • Early consideration of procurement methods

Strong lines of communication provide more informed decision making

Bottom up and top down discussions

3 Scope, Programme & Priority

8 Measurement of success e.g. Enhanced employee experience, reduced run-rate

Results

• Effective capital spend management and cost and risk reduction

• Year-to-year business optimisation

7 Project Pipeline

Developd for each investment opportunity

Capital Planning

• Focused cash flow and depreciation forecasting

CBRE provides capital planning expertise to add value to clients across the globe. Our highly experienced team combines surveying experience and strategic understanding to engage with client stakeholders to develop a capital plan. Additionally, CBRE can provide client-specific budget estimating tools, driving increased accuracy in cashflow and depreciation forecasts.

2 Strategic Planning

Project list sign off by senior management – previous steps may be revisited if amendments are required

Developd for each investment opportunity

Providing an aggregated view of all potential initiatives allows for review and revision

Spend profile and P&L modelled using estimated budget and programme information

6

5

Analysis & Review

Cashflow Forecast & Depreciation

4 Budgets

CBRE PROJECT MANAGEMENT

32

CONSTRUCTION SERVICES While this guide predominantly deals with traditional project and cost management services, CBRE can also provide clients with a number of alternative, bespoke solutions for project delivery.

In multi-disciplinary commissions, part or all of the consultant team can contract directly with CBRE, providing greater project accountability and control, particularly during design. CBRE are also able to act as the principal contractor under CDM regulations.

CBRE can deliver construction activities by acting as a main or general contractor, either by appointing a third-party contractor to carry out the majority of construction activities or acting as a management contractor and appointing a series of sub-contractors, who each provide their specialist services under CBRE’s control.

When our remit extends into construction services, it is possible to agree teams, terms and margins much earlier. Through this 'One Team' approach, clients benefit from open book visibility of competitive tendering at subcontract level to ensure the project is delivered against the approved budget.

Collaboration through all project stages mitigates the transfer of risk between define, design, and deliver phases, and ultimately ensures client requirements translate smoothly into the final product. The main advantage of delivering construction activities in this way is the significant programme time saved against the procurement and mobilisation period required from a third party contractor.

Until construction commences, the critical path runs through the design stages, so this route provides a significant reduction in the time between consultant design and specialist subcontract design, which generally commences after contractor appointment. For the 1,000 sq m projects outlined in this guide, this option can provide overall programme savings which typically range from six to ten weeks against the single stage tender procurement option.

TAX DEPRECIATION Summary benefits of CBRE delivering construction activities: • B rings a 'One Team' approach with a partnering ethos • Simplifies vendor set-up and invoicing process • Provides single point of project accountability • Improves speed to market • Reduces project programme duration • Ensures early agreement of commercial terms • Provides immediate senior management resource commitment • Ensures prompt engagement of specialist consultants and sub-contractors for early completion of key elements of detailed design • Reduces tendering and site mobilisation timeframes • Enhances competitive supply chain price transparency • Improves buying power and ability to influence lead-in time frames • Provides continuity when managing client direct suppliers and specialists from preconstruction into delivery While CBRE offers a full range of services, the delivery and procurement option selected needs to be appropriate to meet project parameters and deliver against client objectives.

For more detail please contact DANIEL TOMS Senior Director t: +44 (0)20 3257 6507 e: daniel.toms@cbre.com

33

EMEA FIT-OUT COST GUIDE

A significant portion of property costs incurred by occupiers could be tax deductible.

This is commonly referred to as Capital Allowances (UK) or Tax Depreciation (EMEA).

It is not uncommon to find as much 95% of the total cost of fit-outs or refurbishments qualifies for some form of relief, depending on the country.

Tax depreciation differs from 'book value' depreciation used for accounting purposes, in that it is used to directly reduce profits subject to taxation. Its methodology and calculation varies by country. In most countries, depreciation allowances are calculated on a linear basis where the taxpayer deducts equal annual amounts.

This is calculated by multiplying the rate of depreciation (useful economic life) by the asset’s initial value, until the asset is written off in full.

In other countries, a reducing-balance basis of depreciation is used, utilising different rates of relief for different categories of expenditure.

As a consequence, if assets are not allocated to the correct category, it could affect the level of relief available and the rate at which it is realised.

All capital expenditure incurred on projects should be reviewed to ensure all assets are correctly allocated for optimal tax relief. For example, in the UK, there is a 100% first-year writing-down allowance for any expenditure incurred on 'green and energy/water efficient technologies'. Similar items which don’t meet the criteria must be written down at a rate of 8% per annum on a reducing balance basis.

As depreciation specialists with mixed property and tax backgrounds, CBRE’s Capital Allowances team is ideally placed to secure optimum tax savings.

ESTIMATEDQUALIFYING PERCENTAGE

YEAR 1 (€)

YEARS 2 – 5 (€)

YEARS 6 – 10 (€)

YEARS 11 + (€)

TOTAL TAX SAVED (€)

Austria

95%

18,000

71,000

89,000

416,000

594,000

Belgium

65%

57,000

229,000

33,000

153,000

472,000

Bulgaria

90%

58,000

97,000

15,000

55,000

225,000

Croatia

85%

84,000

174,000

56,000

68,000

382,000

Czech Republic

80%

49,000

132,000

86,000

114,000

381,000

Denmark

70%

62,000

191,000

33,000

99,000

385,000

Finland

70%

75,000

155,000

30,000

90,000

350,000

France

95%

92,000

179,000

161,000

280,000

712,000

Germany

95%

170,000

179,000

161,000

203,000

713,000

Hungary

90%

61,000

80,000

7,000

54,000

202,000

Ireland

71%

17,000

67,000

50,000

-

134,000

Italy

80%

61,000

246,000

50,000

126,000

483,000

Luxembourg

65%

46,000

183,000

69,000

125,000

423,000

Norway

85%

61,000

203,000

99,000

105,000

468,000

Poland

80%

24,000

98,000

122,000

135,000

379,000

Portugal

85%

54,000

181,000

85,000

126,000

446,000

Romania

60%

11,000

46,000

57,000

126,000

240,000

Saudi Arabia

85%

76,000

236,000

38,000

76,000

426,000

South Africa

90%

80,000

321,000

122,000

107,000

630,000

Spain

85%

57,000

196,000

128,000

150,000

531,000

Sweden

70%

91,000

151,000

28,000

104,000

374,000

Switzerland

95%

49,000

198,000

73,000

109,000

429,000

UAE*

80%

62,000

181,000

68,000

90,000

401,000

UK

74%

61,000

127,000

83,000

175,000

446,000

Ukraine

80%

52,000

207,000

34,000

68,000

361,000

COUNTRY

*Applies only to ‘oil and gas’ producing companies and ‘foreign banks’ who have agreed corporate tax rates within specific tax decrees or with the rulers of the Emirate State in which they operate.

For more detail please contact GRAHAM BURRELL Tax Depreciation, EMEA t: +44 (0)207182 2092 e: graham.burrell@cbre.com

CBRE PROJECT MANAGEMENT

34

CBRE Madrid Office

CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) is becoming increasingly important in real estate.

New regulations, rising operating costs and growing scrutiny from stakeholders are among the factors creating fresh challenges and opportunities.

On average, real estate operations represent approximately 40% of carbon intensive activities across EMEA. Further to this, people spend around 90% of their time inside buildings, so both the environmental and health implications of the spaces we create and occupy are significant.

Enhancing sustainability can also have measurable financial benefits; a well-designed, resource-efficient fit-out can significantly reduce business operation costs.

On average, 90% of business operating costs are attributed to employees, with a further 9% attributed to ongoing utilities costs, so creating healthy and efficient environments can have a huge impact on bottom line.

Search ‘CBRE Healthy Offices’ and ‘CBRE Lab’ to find out more.

OUR HEALTH, PRODUCTIVITY, AND CREATIVITY RESEARCH

A STRONGER DEMAND FOR SMART BUILDINGS

In collaboration with organisations and universities, we investigated the relationship between health-enabled fit-out design and employee performance in two key studies.

A smart building is one that uses automated processes to control a variety of operations.

The Internet of Things (IoT) is supporting the development of a new breed of smart buildings hosting technological ecosystems that track and manage energy, environment, security and other key features. This allows real time interaction between building operators and tenants and can improve employee experience between building operators and tenants.

We first launched CBRE Healthy Offices in 2017, in collaboration with the University of Twente. This research was the first of its kind to confirm the relationship between people’s working environment and their health, well-being and ability to perform.

SUSTAINABLE BUILDINGS ARE:

80%

63%

138%

More productive

More creative

Of tenants experience connectivity issues

70%

18+

Return on investment in the first year

Minutes more deep sleep per night

77%

12%

45%

Increase in attention span

Productivity increase from healthy nutrition

Of tenants consider quality of mobile network coverage as a top priority

12%

10%

46%

Productivity increase from circadian lighting

Productivity increase from biophilic design

Would pay at least 10% over Grade A prime rents for fully tech-enabled smart building

30%

12%

30%

Productivity increase from mindfulness integration

Productivity increase from physical exercise

CREATING RESOURCE-EFFICIENT, PRODUCTIVE, HEALTHY WORKING ENVIRONMENTS Our experts help occupiers achieve a more responsible fit-out in line with their CSR strategy, from establishing overarching portfolio strategies through to technical design and formal third-party certification.

PORTFOLIO CSR STRATEGY We equip occupiers with market-leading responsible fit-out strategies across their portfolios to support existing corporate responsibility commitments, and further deliver tangible cost benefits associated with operating occupied spaces, in a targeted and strategic manner. This will often involve defining criteria for site selection, minimum design and operational requirements for ensuring continued performance, and may involve formal third-party certification targets.

TECHNICAL DESIGN SUPPORT

CERTIFICATION

We would always recommend that any design decisions concerning sustainability are addressed during the project brief stage; in order to improve cost and risk management, avoid abortive work and ultimately enhance the project’s success and sustainability performance.

Green building certification has become more common in the market. Now more than ever, owners and occupiers are demanding fit-outs of a minimum sustainability standard, and are increasingly opting for third-party certification.

This provides a clear, holistic approach and acts as independent verification of achievements against a recognised standard.

We support design teams in providing technical sustainability design advice, tailored to specific project needs, indicating costs and priorities associated with a variety of sustainable fit-out criteria listed below.

• • • • •

Energy efficiency Supply chain impact Lighting quality Carbon footprint Water efficiency

• • • • •

Active lifestyle support Occupant comfort Biophilic design Health impact of products Digital connectivity

The WELL and Fitwel program are designed to provide transparency on the performance of commercial buildings in terms of wellness.

Similarly, Wired Certification provides insight into the 'connectivity' of buildings, which is paramount in today’s digital economy.

Of tenants consider quality of internet as a top priority

12%

See smart building technology as a factor inchoosing a building

Scheme Operated by Countries available (origin) Levels of achievement

BREEAM

LEED

HQE

DGNB

WELL

FITWEL

WIRED CERTIFICATION

BRE

USGBC

CERWAY

DGNB

International WELL Building Institute

US HSS

WIRED SCORE

International (UK)

International (US)

International (France)

International (Germany)

International (US)

International (US)

USA, UK, France, Germany, Canada, Ireland (US)

Pass, Good, Very Good, Excellent, Outstanding

Silver, Gold, Platinum

Pass, Good, Very Good, Excellent, Exceptional

Bronze, Silver, Gold, Platinum

Silver, Gold, Platinum

1 Star, 2 Star, 3 Star

Certified, Silver, Gold, Platinum

In response to energy, environmental, social and societal challenges, CBRE helps occupiers in creating resource-efficient, productive and healthy working environments. We combine unrivalled property expertise with specialist sustainability skills to deliver practical solutions that create financial benefits and add value to spaces, businesses and brands.

For more detail please contact LUDOVIC CHAMBE Head of Sustainability & Corporate Responsibility t: +33 1 5537 4734

Source: The Value of Connectivity – Wired Score & Occupier survey 2019 – CBRE Research

35

EMEA FIT-OUT COST GUIDE

CBRE PROJECT MANAGEMENT

36

REGIONAL MARKET OUTLOOK ECONOMIC OUTLOOK While the slowdown in global growth from the highs of 2017 was widely expected, the H2 2018 deterioration in global trading conditions has continued, or even deepened, into 2019 with the manufacturing sector particularly affected. Indeed, there are indications of something of a two-speed economy emerging, with consumption and personal spending holding up a lot better than the trade sector.

The shape and components of this shift have significant implications for growth patterns globally, the direction of monetary policy and the short and medium-term shape of the cycle.

The manufacturing-led slowdown owes something to the US-China trade dispute but has also been accentuated by a variety of localised but coincident factors. These include the shift to lower-emissions production in Germany, and prolonged uncertainty for British manufacturers stemming from the extension and continued non-resolution of the Brexit process.

Until recently the major bright spot from a global standpoint has been the USA, which had continued to post robust growth figures.

Even here though some cooling is starting to become apparent with, for instance, the pace of new hiring a lot weaker so far in 2019 than it had been through last year.

Further weakening is expected over the next couple of years as job growth wanes and the impact of earlier fiscal stimulus diminishes.

Against this background world economic growth, having run at over 3% per annum in 2017-18, is expected to slow to closer to 2.5% per annum over the two years, with

37

EMEA FIT-OUT COST GUIDE

OFFICE MARKET OVERVIEW weakening evident in all three major regions (North America, Europe and Developed APac). This is a more gradual outlook than the previous version, which featured a sharp slowdown in H2 2020 associated with general tightening in interest rates.

The weaker short-term picture removes the rationale for interest rate rises, as do lower inflation expectations and generally low levels of actual inflation – despite rising employment and very low levels of unemployment in many parts of the world. While there are still risks that inflation could yet take off, the main central banks look to be putting interest rates hikes on hold until economic indicators begin to improve, suggesting a much more gradual process of normalisation in both the US and Europe. In this environment we expect low long and short-term rates to persist for another year or two.

Taking the EMEA region in more detail, most of the larger countries reflect at least some of the global pattern described above with slower growth than last year expected almost everywhere, with only moderate improvement (Germany, Italy) or further slippage in growth rate (Spain, France, Sweden, Poland) anticipated in 2020. Recent data has painted a mixed picture: industrial output falling in Q1 in most of the major economies, and retail trade numbers looking weaker in recent months, alongside rising employment and some indications of upward pressure on wages.

Heightened political uncertainty remains a feature of the European landscape, notably in

the UK where extension to the Brexit process is likely to stifle business investment for longer, but also Spain, France and Italy among others.

Central and Eastern Europe (CEE) has generally shown more resilience on recent short-term measures and this is also true of the forecast outlook: where many of the larger western European economies will struggle to post GDP growth of 1.5% per annum over the next three years, typical CEE growth rates are higher and in some cases (Poland and Hungary, for example) could exceed 3%.

Rents Looking at the property markets, the CBRE EMEA office rent index rose by 2.4% in the year to Q2 2019. This represents something of a slowdown in the growth rate compared with most of the previous two years during which rents were rising at a rate of 3.5% per year or more. While the short-term economic outlook has deteriorated, as described above, it remains our view that a fairly gradual end to the cycle is in prospect, with some further upward pressure on rents likely.

Outside Europe, many markets in sub-Saharan Africa will continue to see strong population growth between 2-3% per year in the short term, and GDP growth above 3% and rising. Inflation remains high relative to European levels, but is showing signs of being more successfully brought under control in some countries. These trends also appear in diluted form in much of the Middle East, albeit with greater risk from oil price fluctuations and Gulf region geo-politics.

There are still widespread variations in market conditions among the main city markets. A number of cities are still seeing rental growth running at over 10% per year, including Berlin and Hamburg, as well as some central European markets (Budapest and Sofia) along with the main Portuguese markets of Lisbon and Porto.

A longer list of cities is seeing rental growth running at between 5-10% per year, including Madrid, Frankfurt, Amsterdam and London City. At the other extreme, a combination of high supply levels and erratic demand is pushing rents downwards in a small number of markets in southern and eastern markets including Moscow, Istanbul and Dubai.

Office Market Against this background there are several factors working to support office market activity: the strength of the service sector relative to manufacturing in many economies; continued job growth in office-based employment sectors; and on the supply side, generally controlled levels of new building and the removal of obsolete stock tending to push vacancy down.

Rates of growth in leasing levels are starting to ease in line with the late stage of the cycle, and the constraining effect of low and falling levels of vacancy that are restricting occupier choice in a number of cities. In aggregate terms, takeup across the main EMEA markets was just over 4 million sq m in the second quarter of 2019, which is 0.4% higher than the corresponding quarter in 2018. Taking the first half of the year as a whole, take-up was 1.4% higher than in the first half of 2018 although the past four quarters combined showed a marginal decline compared with the previous four quarters.

Looking more closely at demand differences between the main cities there isn’t a clear pattern to differences across the region, but it is generally the case that markets that strengthened much earlier in the cycle are easing (London, Dublin, Paris), while late-cycle recovery markets are still improving (Madrid, Milan and also Brussels). Germany is a rather mixed picture: Hamburg and to a lesser extent Berlin are stronger while Munich is down. Among the major CEE markets, Moscow, Warsaw and Budapest were all up quite strongly in Q2 2019 compared with Q2 2018, but weaker when comparing H1 2019 with H1 2018. Prague is notably slower.

The UK data reflects something of a contrast between London and the regions. Take-up for the UK as a whole was 6.5% lower in the first half of this year than in H1 2018, while London on its own was 10% lower.

Manchester and Birmingham have been the strongest of the regional cities.

On the supply side of the market, vacancy levels have generally continued to fall with the EU-28 vacancy rate down to 7.9% at the mid-year point, 0.5 percentage points below its position a year ago. While still heading in the same downward direction as it has been of late, this is the slowest annual rate of decline in vacancy since early 2016, indicating that market balances may be starting to loosen.

This would be good news for occupiers with large requirements, many of whom have a limited choice of space from existing built stock and so in many locations may have to initiate pre-lets to secure space. At mid-year, a number of major markets had vacancy rates lower than 4% including Berlin, Munich, Amsterdam and London’s West End. Several others with higher vacancy rates have seen a reduction of more than a full percentage point in the past year, including Warsaw, Brussels, Frankfurt and Barcelona.

For more detail please contact RICHARD HOLBERTON Head of Occupier Research, EMEA t: +44 (0)207 182 3348 e: richard.holberton@cbre.com

CBRE PROJECT MANAGEMENT

38

1.19

1.1 6

1.1 6

Amsterdam

London

Luxembou rg

Rome

Milan

Mos cow

Vien na

San Fra ncisco

New York

0.5 9

Fran kfur t

1.07

1.04 3

Atla nta The Global Index is a guide only. For budget estimates on specific projects, please contact the CBRE Project Management Division lead from the relevant market who can provide you with relevant and accurate information.

Syd ney

3

0.87

0.88

0.91

1.00 on Lond

NOTE

Johan nesbu rg

1.0

Dublin

Alm aty

0.8

6

ro Cai

olm ckh Sto

cat Mus n hage Copen

own Cape T

Tel Aviv

urg Johannesb

0.94 1.09 0.95 .04 1 1.00 1.00 4 1.00 1.02 1.0

1.12

5 1.1

s Pari

0.94

5 1.1

Chicago

ong gK Hon

1 0.9

EMEA FIT-OUT COST GUIDE

0.9 3

5

9 0.8

Cost data for each location is collected in local currency and then converted to Euros based on an August 2019 exchange rate. Please contact the CBRE GWS Cost Consultancy team if local currency costs are required as there are exchange rate fluctuations anticipated for 2019/2020.

0.9 3

pore Singa

0.8

8 0.8

This index shows the variance across the region for total tenants fit-out project costs.

blin Du

6 1.1

0 Buenos Aires

ai ngh a h S

Kuw ait C ity Hel sink i

Tokyo

0.20

1.0

0.87

rid Mad

st ape Bud

NOTE

Berl in

0.40

Madrid

1.20 1.20 1.20 1.22

Riyad h

0.64

Nai rob i

s Vilniu

Dallas

0.79

Abu Dh abi

Paris

0.60

São P aulo

Gene va

Accra

Dubai

ester Manch

a elon Barc

Frankfurt

This industry leading benchmark data, paired with CBRE’s global presence and market knowledge, allows us to partner with our clients to provide our expertise and offer the best solutions to achieve our clients’ objectives.

0.80

0.76

Kampa la

Luanda

Abidjan

Abuja

Zuri ch

0.8 0

0.8 1

0.81

0.85 0.85 0.8 4 0.8 3 0 .82

Aberdeen

Stuttgart

1.00

Mex ico C ity

1.11

0

ttle Sea

1.20

0.77

Glasgow

0.20

Hamburg

2

1.15

Warsaw

Doha

0.40

Specifically, this index shows the effect on corporate real estate capital planning decisions by reporting the comparative difference of office fit-out costs in 23 key markets across four global regions.

1.2

1.40

8

0.5

Mu mb ai

1.26

0 1.2

Casablanca

a Lusak ne Gaboro

0.60

Lisbon

Oslo

1.24 1.25 1.25 1.25 1.27

0.80

Zagreb

ich Mun

1.26

1.00

The CBRE Global Fit-Out Index aims to highlight the relativity of key markets around the world.

1.34

0.58

otá Bog

1.20

7 1.2

Bruss els

8 1.2

Riga

rut Bei

9 1.2

Tall inn

ba Aba s i Add

o Santiag

Kiev st hare Buc

gue Pra

ade lgr Be

Bel fas t

This EMEA Fit-Out Cost Index shows the fit-out cost multiplier relative to the cost of building in London.

39

.71 0.71 1.68 1.62 1.56 1.4 .72 0 5 1 0 .42 0.75 1.39 1.80 6 7 .

0 1.3 6 9 0.7 1.60 1.3 7 .0 7 1 8 .0 7 1.40

0.86 0.86 0.86 0.86

The 'Ready Reckoner' and benchmarks in this guide provide a good indication of fit-out costs across EMEA. However, the best source of information is a client organisation’s own internal data of historic fit-out projects which will provide the detailed information on the true cost to build to a client specific standard. When a present day benchmark is established, the EMEA Fit-Out Cost Index can be used to estimate the likely costs to build the same again across EMEA.

Bratislava

From large corporations to start-ups, our clients rely on benchmarking as a key tool to assist them in their decision-making process.

Sofia

The cost to fit-out offices varies from city to city, something which must be considered when planning your budget.

Athens

FIT-OUT COST INDEX | GLOBAL

bul Istan

FIT-OUT COST INDEX | EMEA

CBRE PROJECT MANAGEMENT

40

BUILD YOUR BUDGET MATRIX COUNTRY

FURNITURE TRADITIONAL € / SQ M

CAT B AGILE € / SQ M

CITY

Determine spec

Select location

FURNITURE AGILE € / SQ M

Select traditional or agile layout and spec level (inc install, logistics and import tax)

SECURITY € / SQ M Benchmark

(inc import tax)

AV TRADITIONAL € / SQ M

AV AGILE € / SQ M

Select traditional or agile layout and spec level (inc install, logistics and import tax)

LOW

MED

HIGH

LOW

MED

HIGH

LOW

MED

HIGH

LOW, MED & HIGH

LOW

MED

HIGH

LOW

MED

HIGH

FEES

IT € / SQ M

CONTINGENCY

Apply %

(inc import tax)

Select spec

Apply %

LOW

HIGH

TRADITIONAL FIT-OUT TOTAL € / SQ M

AGILE FIT-OUT TOTAL C / SQ M

COUNTRY

Range

Determine spec

Select location

LOW

HIGH

LOW

HIGH

Angola

Luanda

995

1,194

1,830

95+

120+

165+

145+

175+

220+

40+

60+

100+

180+

85+

130+

245+

22%

65+

125+

10%

1,740+

3,239+

1,769+

3,271+

Austria

Vienna

547

670

1,022

105

132

182

160

193

242

40

60

100

180

85

131

246

18%

65

125

10%

1,084

2,056

1,150

Belgium

Brussels

436

551

847

105

132

182

160

193

242

40

60

100

180

85

131

246

18%

65

125

10%

933

1,816

Botswana

Gaborone

752

896

1,368

151

191

262

231

278

350

48

72

120

216

102

157

296

19%

78

150

10%

1,477

Bulgaria

Sofia

320

498

682

108

137

188

165

200

251

40

60

100

180

85

131

246

17%

65

125

10%

Croatia

Zagreb

445

540

782

109

138

190

167

201

253

40

60

100

180

85

131

246

21%

65

125

Czech Republic

Prague

395

506

759

105

133

183

161

194

244

40

60

100

180

85

131

246

17%

65

Denmark

Copenhagen

588

728

1,192

110

139

191

168

203

255

40

60

100

180

85

131

246

26%

Egypt

Cairo

525

783

1,142

182

230

317

278

336

422

64

96

160

288

136

209

394

Estonia

Tallinn

431

522

857

109

138

190

167

201

253

40

60

100

180

85

131

Ethiopia

Addis Ababa

768

917

1,409

161

203

279

245

296

372

52

78

130

234

110

Finland

Helsinki

775

928

1,382

114

144

198

174

210

264

40

60

100

180

France

Paris

737

890

1,384

105

132

182

160

193

242

40

60

100

Germany

Berlin

686

884

1,369

103

130

178

157

189

238

40

60

100

FURNITURE TRADITIONAL € / SQ M

CAT B AGILE € / SQ M

CITY

FURNITURE AGILE € / SQ M

Select traditional or agile layout and spec level (inc install, logistics and import tax)

SECURITY € / SQ M Benchmark

(inc import tax)

AV TRADITIONAL € / SQ M

AV AGILE € / SQ M

Select traditional or agile layout and spec level (inc install, logistics and import tax)

LOW

MED

HIGH

LOW

MED

HIGH

LOW

MED

HIGH

LOW, MED & HIGH

LOW

MED

HIGH

LOW

MED

HIGH

FEES

IT € / SQ M

CONTINGENCY

Apply %

(inc import tax)

Select spec

Apply %

LOW

HIGH

TRADITIONAL FIT-OUT TOTAL € / SQ M

AGILE FIT-OUT TOTAL C / SQ M

Range LOW

HIGH

LOW

HIGH

Luxembourg

Luxembourg

606

786

1,128

105

132

182

160

193

242

40

60

100

180

85

131

246

18%

65

125

10%

1,165

2,199

1,227

2,287

2,150

Morocco

Casablanca

402

502

749

147

186

256

225

271

341

50

75

125

225

106

164

308

14%

81

156

10%

961

1,826

1,070

1,987

1,006

1,923

Netherlands

Amsterdam

650

800

1,090

105

132

182

160

193

242

40

60

100

180

85

131

246

18%

65

125

10%

1,224

2,147

1,284

2,238

2,738

1,568

2,863

Nigeria

Abuja

1,089

1,445

2,048

95+

120+

165+

145+

175+

220+

40+

60+

100+

180+

85+

130+

245+

22%

65+

125+

10%

1,871+

3,547+

1,895+

3,564+

773

1,586

857

1,706

Norway

Oslo

697

1,100

1,667

114

144

198

174

210

264

40

60

100

180

85

131

246

19%

65

125

10%

1,312

2,981

1,374

3,040

10%

973

1,778

1,052

1,896

Oman

Muscat

672

877

1,271

126

160

219

193

233

293

42

63

105

189

89

137

259

18%

68

131

10%

1,293

2,466

1,368

2,565

125

10%

871

1,685

947

1,797

Poland

Warsaw

486

604

863

109

138

190

167

201

253

40

60

100

180

85

131

246

17%

65

125

10%

1,000

1,834

1,073

1,942

65

125

10%

1,220

2,447

1,292

2,541

Portugal

Lisbon

454

608

922

105

132

182

160

193

242

40

60

100

180

85

131

246

15%

65

125

10%

935

1,873

1,005

1,973

15%

104

200

10%

1,247

2,586

1,383

2,778

Qatar

Doha

782

1,072

1,516

125

158

218

191

231

290

42

63

105

189

89

137

259

18%

68

131

10%

1,443

2,798

1,509

2,879

246

14%

65

125

10%

903

1,782

978

1,888

Romania

Bucharest

346

468

751

111

140

193

170

205

257

40

60

100

180

85

131

246

18%

65

125

10%

819

1,699

903

1,818

170

320

17%

85

163

10%

1,508

2,815

1,606

2,950

Russia

Moscow

480

625

1,000

138

174

239

210

254

319

50

75

125

225

106

164

308

12%

81

156

10%

1,035

2,102

1,131

2,238

85

131

246

16%

65

125

10%

1,386

2,530

1,442

2,606

Saudi Arabia

Riyadh

725

930

1,336

141

178

244

215

259

326

48

72

120

216

102

157

296

17%

78

150

10%

1,403

2,630

1,487

2,746

180

85

131

246

18%

65

125

10%

1,344

2,550

1,397

2,620

Serbia

Belgrade

340

418

648

135

170

234

206

249

312

48

72

120

216

102

157

296

17%

78

150

10%

875

1,684

981

1,843

180

85

131

246

26%

65

125

10%

1,354

2,687

1,413

2,761

Slovakia

Bratislava

319

528

690

109

138

190

167

201

253

40

60

100

180

85

131

246

15%

65

125

10%

760

1,574

843

1,692

Germany

Frankfurt

748

899

1,391

103

130

178

157

189

238

40

60

100

180

85

131

246

26%

65

125

10%

1,444

2,718

1,498

2,791

South Africa

Cape Town

556

711

1,085

142

179

246

216

261

328

48

72

120

216

102

157

296

18%

78

150

10%

1,186

2,309

1,283

2,445

Germany

Hamburg

765

920

1,423

103

130

178

157

189

238

40

60

100

180

85

131

246

26%

65

125

10%

1,469

2,766

1,522

2,836

South Africa

Johannesburg

551

704

1,075

142

179

246

216

261

328

48

72

120

216

102

157

296

18%

78

150

10%

1,178

2,295

1,276

2,432

Germany

Munich

783

941

1,456

103

130

178

157

189

238

40

60

100

180

85

131

246

26%

65

125

10%

1,495

2,813

1,547

2,881

Spain

Barcelona

500

578

882

108

137

188

165

200

251

40

60

100

180

85

131

246

18%

65

125

10%

1,025

1,872

1,097

1,979

Germany

Stuttgart

750

913

1,412

103

130

178

157

189

238

40

60

100

180

85

131

246

26%

65

125

10%

1,446

2,750

1,500

2,821

Spain

Madrid

506

611

913

108

137

188

165

200

251

40

60

100

180

85

131

246

18%

65

125

10%

1,033

1,914

1,105

2,019

Ghana

Accra

860

1,033

1,662

145

184

252

222

268

337

48

72

120

216

102

157

296

20%

78

150

10%

1,630

3,156

1,711

3,257

Sweden

Stockholm

736

884

1,369

112

142

195

171

207

260

40

60

100

180

85

131

246

18%

65

125

10%

1,353

2,546

1,411

2,623

Greece

Athens

327

400

640

118

149

205

180

217

273

40

60

100

180

85

131

246

19%

65

125

10%

807

1,575

898

1,707

Switzerland

Geneva

896

1,129

1,636

110

139

191

168

203

255

40

60

100

180

85

131

246

25%

65

125

10%

1,657

3,071

1,706

3,132

Hungary

Budapest

496

647

1,007

109

138

190

167

201

253

40

60

100

180

85

131

246

15%

65

125

10%

997

1,997

1,068

2,094

Switzerland

Zurich

894

1,129

1,636

110

139

191

168

203

255

40

60

100

180

85

131

246

25%

65

125

10%

1,655

3,070

1,704

3,131

Ireland

Dublin

550

660

1,033

106

134

185

162

196

246

40

60

100

180

85

131

246

14%

65

125

10%

1,056

2,009

1,121

2,101

Turkey

Istanbul

361

472

669

121

152

210

184

222

279

43

64

107

193

91

140

264

17%

70

134

10%

859

1,627

950

1,763

Israel

Tel Aviv

567

794

1,152

133

168

231

203

245

308

45

67

112

202

95

147

276

14%

73

140

10%

1,135

2,273

1,220

2,387

UAE

Abu Dhabi

741

903

1,401

125

158

218

191

231

290

42

63

105

189

89

137

259

19%

68

131

10%

1,398

2,663

1,468

2,752

Italy

Milan

531

669

1,062

108

137

188

165

200

251

40

60

100

180

85

131

246

17%

65

125

10%

1,058

2,102

1,128

2,196

UAE

Dubai

741

903

1,401

125

158

218

191

231

290

42

63

105

189

89

137

259

19%

68

131

10%

1,398

2,663

1,468

2,752

Italy

Rome

554

651

1,054

108

137

188

165

200

251

40

60

100

180

85

131

246

17%

65

125

10%

1,090

2,091

1,158

2,186

Uganda

Kampala

906

1,082

1,656

156

197

271

238

287

361

50

75

125

225

106

164

308

20%

81

156

10%

1,719

3,194

1,805

3,307

Ivory Coast

Abidjan

1,051

1,281

1,967

145

184

252

222

268

337

48

72

120

216

102

157

296

21%

78

150

10%

1,911

3,608

1,979

3,688

UK

Aberdeen

485

594

891

106

134

185

162

196

246

40

60

100

180

85

131

246

17%

65

125

10%

994

1,866

1,065

1,970

Kazakhstan

Almaty

469

552

886

139

175

241

212

256

321

46

69

115

207

97

151

283

19%

75

144

10%

1,061

2,025

1,161

2,169

UK

Belfast

416

530

817

106

134

185

162

196

246

40

60

100

180

85

131

246

17%

65

125

10%

901

1,765

976

1,874

Kenya

Nairobi

780

950

1,416

156

197

271

238

287

361

50

75

125

225

106

164

308

20%

81

156

10%

1,544

2,859

1,639

2,989

UK

Glasgow

485

594

891

106

134

185

162

196

246

40

60

100

180

85

131

246

17%

65

125

10%

994

1,866

1,065

1,970

Kuwait

Kuwait City

708

938

1,358

127

161

221

194

235

295

42

63

105

189

89

137

259

18%

68

131

10%

1,344

2,587

1,416

2,680

UK

London

592

734

1,161

106

134

185

162

196

246

40

60

100

180

85

131

246

17%

65

125

10%

1,140

2,231

1,203

2,317

Latvia

Riga

474

555

793

109

138

190

167

201

253

40

60

100

180

85

131

246

16%

65

125

10%

976

1,725

1,049

1,837

UK

Manchester

485

594

891

106

134

185

162

196

246

40

60

100

180

85

131

246

17%

65

125

10%

994

1,866

1,065

1,970

Lebanon

Beirut

690

840

1,303

170

215

295

260

313

394

60

90

150

270

127

196

370

18%

98

188

10%

1,465

2,799

1,582

2,967

Ukraine

Kiev

362

477

748

114

144

198

174

210

264

40

60

100

180

85

131

246

16%

65

125

10%

830

1,676

914

1,795

Lithuania

Vilnius

543

632

953

109

138

190

167

201

253

40

60

100

180

85

131

246

10%

65

125

10%

1,018

1,850

1,083

1,946

Zambia

Lusaka

765

907

1,342

156

197

271

238

287

361

50

75

125

225

106

164

308

19%

81

156

10%

1,510

2,735

1,605

2,869

41

EMEA FIT-OUT COST GUIDE

CBRE PROJECT MANAGEMENT

42

KEY CONTACTS GWS EMEA PROJECT MANAGEMENT MATTHEW EASTWOOD Managing Director Project Management, EMEA t: +44 (0) 7960 879 605 e: matthew.easwood@cbre.com NICHOLAS WINTER Client Solutions t: +44 (0) 2032 576 732 e: nicholas.winter@cbre.com

AUTHORS JESS WEST t: +44 (0) 7867 189 982 e: jess.west@cbre.com

TAPIWA MWELA t: +44 (0) 7384 876 933 e: tapiwa.mwela@cbre.com

ALEX ROSE Digital Sales EMEA t: +44 (0) 7900 737 876 e: alexandra.rose@cbre.com

GWS EMEA COST CONSULTANCY SAM BARNES Cost Consultancy Platform t: +44 (0) 7796 192 042 e: sam.barnes@cbre.com

PENNY MOCINI Cost Consultancy Platform t: +44 (0) 7920 701 025 e: penny.mocini@cbre.com

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