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EMEAFIT-OUT COST GUIDE2019/20 Editionwww.cbre.com

MATTHEW EASTWOOD

Managing Director Project Management, EMEA

CBRE Global Workplace Solutions

2CBRE PROJECT MANAGEMENTEMEA FIT-OUT COST GUIDE1

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.

CONTENTS FOREWORD

2 FOREWORD

3 WORKPLACE TRENDS

5 TRADITIONAL VS. AGILE WORKPLACE

6 LAYOUTS

7 SPECIFICATIONS (LOW, MEDIUM, HIGH)

14 PRICING ASSUMPTIONS

15 CAT B CONSTRUCTION COSTS

17 TECHNOLOGY

21 FURNITURE

24 PROFESSIONAL FEES

25 BUSINESS TRANSITION & MOVE MANAGEMENT

27 REINSTATEMENT

29 PROCUREMENT & PROGRAMME

31 CAPITAL PLANNING

33 CONSTRUCTION SERVICES

34 TAX DEPRECIATION

35 CORPORATE SOCIAL RESPONSIBILITY

37 REGIONAL MARKET OUTLOOK

39 FIT-OUT COST INDEX | EMEA

40 FIT-OUT COST INDEX | GLOBAL

41 BUILD YOUR BUDGET MATRIX

70%plan to increase real estate technology investment

50%of professional services companies intend to make significant use of hybrid space

28%see the use of flexible space as a way of attracting and retaining talent

60%expect technological innovation to have a high or very high impact on their operations

60%would pay at least 10% over Grade A prime rents for high-amenity 'service agreement' space

45%expect to have significant use of flexible offices by 2021

4EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT3

3. Enhanced User ExperienceCurrently 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.

Perhaps not unexpectedly, the greatest challenge facing building occupiers over the last 12 months has been economic uncertainty, according to the CBRE 2019 EMEA Occupier Survey. This is particularly true for those in the professional services industry, although challenges vary across different sectors: technology companies are most concerned with workforce/talent preferences, whereas banking and finance companies see technology as the main challenge and for life sciences, the main concern is tightening regulation and legislation.

TRENDS OBSERVED IN THE LAST 12 MONTHS*

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 to prospective employees: Procurement & Fit-out, Flexible Space, User Experience and Technology.

1. Procurement & Fit-Out – Towards more user-friendly buildingsIn last year’s survey, cost-reduction was the single most important driver of corporate real estate strategy, with employee engagement coming fourth. This year cost reduction has dropped to fourth position, employee engagement has risen to second and talent attraction and development to third. In short, people are becoming an increasingly important consideration.

It looks increasingly as though buildings that offer an adaptable mix of fit-out types, traditional vs. flexible space, diverse working environments, price points and amenity. These, as well as those which are technology enabled, will compete best for occupiers.

2. Flexible Space – On the riseThere is continued growth in corporate demand for flexible space, with 45% of companies expecting to make significant use of flexible space over the next three years, compared with 25% currently in use.

The main motives for utilisation of flexible workspace are cost reduction and accommodating short-term demand increases. However the use of flexible space for attracting and retaining talent is becoming a key agenda item. Nearly a further third of employers see it as a way of testing alternate workspace models. Companies increasingly view flexible space as a way of supporting their talent agenda, and in many cases are still at an experimental 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.

WORKPLACE TRENDS

ANDREW BLACKWELL CBRE, Workplace Consultancy

t: +44 (0)7964 566 960 e: [email protected]

For more detail please contact

4. Technology – Aligning technology and talentTechnology 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

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 -

Total 1,000 75

AGILE

Space Designation

Net Area (sq m)

Work Settings

Open plan desks/benches 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 -

Total 1,000 105


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

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.

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.

AGILE

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.

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.

TraditionalArea schedule

Agile

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.

The workplace settings in the traditional layout focuses more on private work settings. The agile layout reflect the collaborative and flexible work environment.

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 VS. AGILE WORKPLACE LAYOUTS

ASSUMPTIONS


RECEPTION

COFFEE LOUNGE

COLLABORATION AREAMEETING ROOMWORKPOINTS

LOW SPECIFICATION

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

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

ASSUMPTIONS


MEDIUM SPECIFICATION

RECEPTION

COFFEE LOUNGE


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

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

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

ASSUMPTIONS


HIGH SPECIFICATION

RECEPTION

COFFEE LOUNGE


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

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

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

CBRE London Office 14CBRE PROJECT MANAGEMENT13 EMEA FIT-OUT COST GUIDE

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

• 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

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).

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%

Austria Vienna 547 670 1,022 3 – 4%

Belgium Brussels 436 551 847 1 – 2%

Botswana Gaborone 752 896 1,368 5 – 7%

Bulgaria Sofia 320 498 682 2 – 4%

Croatia Zagreb 445 540 782 1 – 3%

Czech Republic Prague 395 506 759 2 – 3%

Denmark * Copenhagen 588 728 1,192 0 – 1%

Egypt Cairo 525 783 1,142 10 – 15%

Estonia Tallinn 431 522 857 2 – 3%

Ethiopia Addis Ababa 768 917 1,409 8 – 12%

Finland * Helsinki 775 928 1,382 1 – 3%

France Paris 737 890 1,384 2 – 3%

Germany * Berlin 686 884 1,369 1 – 3%

Germany * Frankfurt 748 899 1,391 1 – 3%

Germany * Hamburg 765 920 1,423 1 – 3%

Germany * Munich 783 941 1,456 1 – 3%

Germany * Stuttgart 750 913 1,412 1 – 3%

Ghana Accra 860 1,033 1,662 8 – 10%

Greece Athens 327 400 640 0 – 2%

Hungary * Budapest 496 647 1,007 3 – 6%

Ireland Dublin 550 660 1,033 5 – 7%

Israel Tel Aviv 567 794 1,152 1 – 3%

Italy Milan 531 669 1,062 0 – 1%

Italy Rome 554 651 1,054 0 – 1%

Ivory Coast Abidjan 1,051 1,281 1,967 3 – 6%

Kazakhstan Almaty 469 552 886 7 – 9%

Kenya Nairobi 780 950 1,416 7 – 9%

Kuwait Kuwait City 708 938 1,358 2 – 4%

Latvia Riga 474 555 793 1 – 3%

Lebanon Beirut 690 840 1,303 5 – 7%

Lithuania Vilnius 543 632 953 2 – 4%

COUNTRY CITY LOW SPECIFICATION MEDIUM SPECIFICATION HIGH SPECIFICATION CONSTRUCTION INFLATION

(€ / sq m) (€ / sq m) (€ / sq m) %

Luxembourg Luxembourg 606 786 1,128 1 – 2%

Morocco Casablanca 402 502 749 2 – 4%

Netherlands Amsterdam 650 800 1,090 4 – 6%

Nigeria Abuja 1,089 1,445 2,048 8 – 12%

Norway * Oslo 697 1,100 1,667 1 – 3%

Oman Muscat 672 877 1,271 2 – 4%

Poland Warsaw 486 604 863 5 – 6%

Portugal Lisbon 454 608 922 1 – 3%

Qatar Doha 782 1,072 1,516 2 – 4%

Romania Bucharest 346 468 751 5 – 8%

Russia Moscow 480 625 1,000 3 – 6%

Saudi Arabia Riyadh 725 930 1,336 2 – 4%

Serbia * Belgrade 340 418 648 1 – 3%

Slovakia * Bratislava 319 528 690 1 – 3%

South Africa Cape Town 556 711 1,085 4 – 6%

South Africa Johannesburg 551 704 1,075 4 – 6%

Spain Barcelona 500 578 882 1 – 3%

Spain Madrid 506 611 913 1 – 3%

Sweden * Stockholm 736 884 1,369 2 – 4%

Switzerland Geneva 896 1,129 1,636 0 – 1%

Switzerland Zurich 894 1,129 1,636 0 – 1%

Turkey Istanbul 361 472 669 12 – 17%

UAE Abu Dhabi 741 903 1,401 2 – 4%

UAE Dubai 741 903 1,401 2 – 4%

Uganda Kampala 906 1,082 1,656 3 – 6%

UK Aberdeen 485 594 891 2 – 4%

UK Belfast 416 530 817 2 – 4%

UK Glasgow 485 594 891 2 – 4%

UK London 592 734 1,161 2 – 4%

UK Manchester 485 594 891 2 – 4%

Ukraine Kiev 362 477 748 5 – 8%

Zambia Lusaka 765 907 1,342 6 – 9%


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.

NOTEAll 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.

CAT B CONSTRUCTION COSTS (READY RECKONER)

IT COST(Excludes taxes and contingency)

€65 – €125 / sq m

EMEA FIT-OUT COST GUIDE17 18CBRE PROJECT MANAGEMENT

IT

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.

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.

TECHNOLOGY AND THE EVOLUTION OF OFFICE SPACE


PTS [email protected]

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.

[1] EMEA Occupier Survey, CBRE, 2019

CBRE Milan Office

AGILE AV SPECIFICATION DESCRIPTION

Space type Low Medium HighReception 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

Lift lobby No AV TV screen fed direct from building TV distribution


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 interactive touch screen LED screens

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 screen with wireless presentation and IP conference phone and VC camera

Small meeting rooms

No AV IP desk phone 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

Interactive whiteboard, LED screen and collaboration facilities with immersive features

Comms room Centralised AV equipment Centralised AV equipment Centralised AV equipment

TRADITIONAL AV SPECIFICATION DESCRIPTION

Space type Low Medium HighReception 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

Desk area No AV TV screen fed direct from building TV distribution


Lift lobby No AV TV screen fed direct from building TV distribution


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

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

Small meeting rooms

No AV IP desk phone IP desk phone and VC camera

Comms room Centralised AV equipment Centralised AV equipment Centralised AV equipment

SECURITY COST(Excludes taxes and contingency)

€40 / sq m


AUDIO VISUAL

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

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.

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

AV COST – TRADITIONAL(Excludes taxes and contingency)

Low €60/sq mMedium €100/sq mHigh €180/sq m

AV COST – AGILE(Excludes taxes and contingency)

Low €85/sq mMedium €130/sq mHigh €245/sq m

SECURITY

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

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.

EMEA FIT-OUT COST GUIDE21 CBRE PROJECT MANAGEMENT 22

NUDGE BETTER BEHAVIOURS

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.

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.

GIVE EMPLOYEES CONTROL

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

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.

REDUCE STRESS LEVELS

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-or-flight mechanism. Elevated cortisol levels are tied to a host of health issues, from heart disease to lower cognitive abilities.

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.

Using physical elements to de-stress the workplace.

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.

FURNITURE

SO HOW CAN A BUILDING MAKE PEOPLE HEALTHIER?

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.

MARTIN EVETTSGeneral Manager, UK & Ireland


FURNITURE BENCHMARK COSTS

Low Specification (€ / sq m) Medium Specification (€ / sq m) High Specification (€ / sq m)

Traditional 95 120 165

Agile 145 175 220

COUNTRY INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

Angola varies varies varies varies

Austria 8% 2% 0% 5

Belgium 6% 4% 0% 5

Botswana 9% 30% 20% 14

Bulgaria 8% 6% 0% 5

Croatia 7% 8% 0% 6

Czech Republic 6% 5% 0% 7

Denmark 8% 8% 0% 5

Egypt 8% 24% 60% 12

Estonia 6% 9% 0% 6

Ethiopia 9% 30% 30% 14

Finland 8% 12% 0% 6

France 6% 4% 0% 14

Germany 6% 2% 0% 5

Ghana 9% 24% 20% 12

Greece 8% 16% 0% 6

Hungary 6% 9% 0% 6

Ireland 6% 6% 0% 6

Israel 8% 20% 12% 8

Italy 8% 6% 0% 5

Ivory Coast 9% 24% 20% 14

Kazakhstan 7% 24% 15% 9

Kenya 9% 30% 25% 12

Kuwait 9% 20% 5% 12

Latvia 6% 9% 0% 6

Lebanon 9% 20% 50% 8

COUNTRY INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

Lithuania 6% 9% 0% 6

Luxembourg 6% 4% 0% 5

Morocco 15% 15% 25% 8

Netherlands 6% 4% 0% 5

Nigeria varies varies varies varies

Norway 8% 12% 0% 6

Oman 8% 20% 5% 12

Poland 6% 9% 0% 5

Portugal 6% 4% 0% 5

Qatar 7% 20% 5% 11

Romania 7% 10% 0% 5

Russia 6% 14% 25% 8

Saudi Arabia 8% 20% 20% 12

Serbia 8% 14% 20% 6

Slovakia 6% 9% 0% 7

South Africa 8% 21% 20% 12

Spain 6% 8% 0% 5

Sweden 8% 10% 0% 6

Switzerland 8% 8% 0% 5

Turkey 8% 12% 7% 6

UAE 7% 20% 5% 11

Uganda 9% 30% 25% 14

UK 6% 6% 0% 6

Ukraine 8% 12% 0% 8

Zambia 9% 30% 25% 14

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 CAT 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)

Angola 22%

Austria 18%

Belgium 18%

Botswana 19%

Bulgaria 17%

Croatia 21%

Czech Republic 17%

Denmark 26%

Egypt 15%

Estonia 14%

Ethiopia 17%

Finland 16%

France 18%

Germany 26%

Ghana 20%

Greece 19%

Hungary 15%

Ireland 14%

Israel 14%

Italy 17%

Ivory Coast 21%

Kazakhstan 19%

Kenya 20%

Kuwait 18%

Latvia 16%

Lebanon 18%

COUNTRY FEES (% OF PROJECT COSTS)

Lithuania 10%

Luxembourg 18%

Morocco 14%

Netherlands 18%

Nigeria 22%

Norway 19%

Oman 18%

Poland 17%

Portugal 15%

Qatar 18%

Romania 18%

Russia 12%

Saudi Arabia 17%

Serbia 17%

Slovakia 15%

South Africa 18%

Spain 18%

Sweden 18%

Switzerland 25%

Turkey 17%

UAE 19%

Uganda 20%

UK 17%

Ukraine 16%

Zambia 19%

CBRE Amsterdam Office 24CBRE PROJECT MANAGEMENTEMEA FIT-OUT COST GUIDE23

PROFESSIONAL FEES

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

TYPE OF MOVE 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


BUSINESS TRANSITION & MOVE MANAGEMENT

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

CBRE Milan Office

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.

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.

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.

MARTIN ATKINSON Head of Business Transition & Move Management, EMEA



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.

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.

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.

International Accounting Standards – IFRS 16

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.

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.

COUNTRY CITY RATE (€ / SQ M)

TOTAL LEASE(€) LEASE LIABILITY ASSUMPTION

Angola Luanda € 7 € 7,000 Re-decoration and clearing of space

Austria Vienna € 120 € 120,000 Full removal of fit-out

Belgium Brussels € 175 € 175,000 Full removal of fit-out and repair

Botswana Gaborone € 110 € 110,000 Full removal of fit-out

Croatia Zagreb € 7 € 7,000 Re-decoration and clearing of space

Czech Republic Prague € 7 € 7,000 Re-decoration and clearing of space

Denmark Copenhagen € 200 € 200,000 Full removal of fit-out

Egypt Cairo € 9 € 9,000 Re-decoration and clearing of space

Ethiopia Addis Ababa € 125 € 125,000 Full removal of fit-out

Finland Helsinki € 18 € 18,000 Re-decoration and clearing of space

France Paris € 185 € 185,000 Full removal of fit-out and repair

Germany Berlin € 120 € 120,000 Full removal of fit-out and repair

Germany Frankfurt € 130 € 130,000 Full removal of fit-out and repair

Germany Hamburg € 120 € 120,000 Full removal of fit-out and repair

Germany Munich € 135 € 135,000 Full removal of fit-out and repair

Germany Stuttgart € 130 € 130,000 Full removal of fit-out and repair

Ghana Accra € 8 € 8,000 Re-decoration and clearing of space

Greece Athens € 80 € 80,000 Full removal of fit-out

Hungary Budapest € 80 € 80,000 Full removal of fit-out

Ireland Dublin € 175 € 175,000 Full removal of fit-out and repair

Israel Tel Aviv € 10 € 10,000 Re-decoration and clearing of space

Italy Milan € 175 € 175,000 Full removal of fit-out and repair

Italy Rome € 175 € 175,000 Full removal of fit-out and repair

Ivory Coast Abidjan € 140 € 140,000 Full removal of fit-out

Kazakhstan Astana € 10 € 10,000 Clear space only

Kenya Nairobi € 140 € 140,000 Full removal of fit-out and repair

Kuwait Kuwait € 190 € 190,000 Full removal of fit-out

Luxembourg Luxembourg € 190 € 190,000 Full removal of fit-out and repair

Morocco Marrakesh € 55 € 55,000 Full removal of fit-out

COUNTRY CITY RATE (€ / SQ M)

TOTAL LEASE(€) LEASE LIABILITY ASSUMPTION

Netherlands Amsterdam € 12 € 12,000 Re-decoration and clearing of space

Nigeria Abuja € 140 € 140,000 Full removal of fit-out

Norway Oslo € 18 € 18,000 Re-decoration and clearing of space

Oman Muscat € 175 € 175,000 Full removal of fit-out

Poland Warsaw € 35 € 35,000 Re-decoration and clearing of space

Portugal Lisbon € 95 € 95,000 Full removal of fit-out

Qatar Doha € 210 € 210,000 Full removal of fit-out and repair

Romania Bucharest € 90 € 90,000 Full removal of fit-out

Russia Moscow € 75 € 75,000 Re-decoration and recarpeting

Saudi Arabia Riyadh € 175 € 175,000 Partial removal of fit-out (often negotiated)

Serbia Belgrade € 160 € 160,000 Full removal of fit-out and repair

Slovakia Bratislava € 95 € 95,000 Full removal of fit-out and repair

South Africa Cape Town € 80 € 80,000 Full removal of fit-out

South Africa Johannesburg € 80 € 80,000 Full removal of fit-out

Spain Barcelona € 110 € 110,000 Full removal of fit-out

Spain Madrid € 110 € 110,000 Full removal of fit-out

Sweden Stockholm € 18 € 18,000 Re-decoration and clearing of space

Switzerland Geneva € 170 € 170,000 Full removal of fit-out and repair

Switzerland Zurich € 170 € 170,000 Full removal of fit-out and repair

Turkey Istanbul € 14 € 14,000 Re-decoration and clearing of space

UAE Abu Dhabi € 200 € 200,000 Full removal of fit-out

UAE Dubai € 200 € 200,000 Full removal of fit-out

Uganda Kampala € 135 € 135,000 Full removal of fit-out

UK Aberdeen € 175 € 175,000 Full removal of fit-out and repair

UK Belfast € 170 € 170,000 Full removal of fit-out and repair

UK Glasgow € 180 € 180,000 Full removal of fit-out and repair

UK London € 230 € 230,000 Full removal of fit-out and repair

UK Manchester € 180 € 180,000 Full removal of fit-out and repair

Zambia Lusaka € 135 € 135,000 Full removal of fit-out

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.


REINSTATEMENTKey Assumptions

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

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.

Includ

MARK TATLOW Reinstatement Consultancy



UK & IRELAND

IBERIA

WESTERN EUROPE

CENTRAL & EASTERN EUROPE

NORDICS

SOUTHERN EUROPE & MEDITERRANEAN

MIDDLE EAST

AFRICAAngola

BotswanaEgypt

EthiopiaGhana

Ivory CoastKenya

NigeriaSouth Africa

UgandaZambia

BulgariaCroatia

Czech RepublicEstonia

HungaryKazakhstan

LatviaLithuania

PolandRomania

RussiaSerbia

SlovakiaUkraine

MoroccoPortugal

Spain

KuwaitLebanon

OmanQatar

Saudi ArabiaUAE

DenmarkFinlandNorwaySweden

GreeceIsraelItaly

Turkey

IrelandUK

AustriaBelgium

FranceGermany

LuxembourgNetherlandsSwitzerland

TraditionalTraditionalTraditionalDesign & BuildDesign & BuildDesign & BuildDesign & BuildDesign & BuildTraditionalDesign & BuildTraditional

TraditionalTraditionalTraditionalTraditionalTraditionalDesign & BuildTraditionalTraditionalTraditionalTraditional / Design & BuildTraditionalDesign & BuildDesign & BuildConstruction Management

Design & BuildDesign & BuildDesign & Build

TraditionalTraditionalTraditionalTraditionalDetail & BuildTraditional

Construction ManagementTraditionalDetail & BuildConstruction Management

TraditionalTraditionalTraditionalDesign & Build

TraditionalTraditional / Design & Build

Construction ManagementDesign & BuildDetail & BuildTraditionalDesign & BuildConstruction ManagementTraditional

0 10 20 30 40 50

0 10 20 30 40 50WEEKS

WEEKS

TYPICAL PROCUREMENT ROUTE AND PROGRAMMECountry Procurement Route Programme

Inception

Design

Tender

Construction

Handover


PROCUREMENT & PROGRAMMEUnderstanding 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.

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.

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.

PROCUREMENT ROUTES

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

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

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


CAPITAL PLANNINGThe 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.

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.

OUTCOMES

Although organisations differ, the benefits of capital planning are universal:

• Operational expenditure efficiencies

• Better understanding of property portfolio and overarching strategy

• 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

• Effective capital spend management and cost and risk reduction

• Focused cash flow and depreciation forecasting

• Year-to-year business optimisation

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.

Maintain Relationships

& Repeat

Communication

Results

Strategic Planning

Project Pipeline

Scope, Programme & Priority

Analysis & Review

Budgets

Cashflow Forecast & Depreciation

Capital Planning

Strong lines of communication provide more

informed decision making Bottom up

and top down discussions

Developd for each investment

opportunity

Developd for each investment

opportunity

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

information

Providing an aggregated view of all potential

initiatives allows for review and revision

Project list sign off by senior management – previous steps may be

revisited if amendments are required

Measurement of success e.g. Enhanced employee experience,

reduced run-rate

Communication is key in updating in line with changing

business needs

1

2

3

4

56

7

8

9

COUNTRY 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

*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.


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.

CONSTRUCTION SERVICES TAX DEPRECIATION

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.

Summary benefits of CBRE delivering construction activities:

• Brings 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.

DANIEL TOMSSenior Director



GRAHAM BURRELLTax Depreciation, EMEA

t: +44 (0)207182 2092 e: [email protected]



CORPORATE SOCIAL RESPONSIBILITYCorporate 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.

OUR HEALTH, PRODUCTIVITY, AND CREATIVITY RESEARCH

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

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.

A STRONGER DEMAND FOR SMART BUILDINGS

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.

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

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.

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.

CERTIFICATION

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.

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.

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

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

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.

CBRE Madrid Office

Scheme BREEAM LEED HQE DGNB WELL FITWEL WIRED CERTIFICATION

Operated by BRE USGBC CERWAY DGNB International WELL Building Institute

US HSS WIRED SCORE

Countries available (origin)

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

Ireland (US)

Levels of achievement 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

80%Of tenants experience connectivity issues

77%Of tenants consider quality of internet as a top priority

12%Of tenants consider quality of mobile network coverage as a top priority

46%Would pay at least 10% over Grade A prime rents for fully tech-enabled smart building

30%See smart building technology as a factor inchoosing a building

LUDOVIC CHAMBEHead of Sustainability & Corporate Responsibility

t: +33 1 5537 4734


63%More productive

70%Return on investment in the first year

12%Increase in attention span

12%Productivity increase from circadian lighting

30%Productivity increase from mindfulness integration

138%More creative

18+Minutes more deep sleep per night

45%Productivity increase from healthy nutrition

10%Productivity increase from biophilic design

12%Productivity increase from physical exercise

SUSTAINABLE BUILDINGS ARE:• Energy efficiency• Supply chain impact• Lighting quality• Carbon footprint• Water efficiency

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


REGIONAL MARKET OUTLOOKECONOMIC 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

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%.

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.

OFFICE MARKET OVERVIEW

RentsLooking 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.

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 MarketAgainst 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, take-up 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.

RICHARD HOLBERTONHead of Occupier Research, EMEA




FIT-OUT COST INDEX | EMEA

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

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.

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

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

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

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.

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.

NOTE

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

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.

NOTE

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.

FIT-OUT COST INDEX | GLOBAL

1.68 1.621.45

1.561.42 1.39

1.391.31

1.291.28

1.271.26

1.271.25

1.251.25

1.24

1.22

1.20

1.20

1.20

1.19

1.16

1.16

1.16

1.15

1.15

1.121.09

1.041.041.021.00

Amste

rdam

1.00

Lond

on

1.00

Luxem

bourg

0.95

Rome

0.94

Milan

0.94

Mosco

w

0.93

Vienna

0.93

Almaty

0.91

Dublin

0.89

Budapest

0.88

Madrid

0.87

Barcelona

0.86

Vilnius

0.86

Manchester

0.86Aberdeen

0.86Glasgow

0.85Warsaw

0.85Casablanca

0.84Lisbon

0.83Zagreb

0.82

Brussels0.8

1

Riga

0.81

Tallinn

0.80

Belfast 0.78

Belgrade 0.77

Prague 0.76

Bucharest 0.76

Kiev 0.75

Istanbul 0.72

Athens 0.71

Bratislava

0.71

Sofia Abuja

Abidj

an

Luan

da

Kamp

ala

Accra

Genev

aZur

ichNa

irobi

Addis A

baba

Beirut

Munich

Oslo

Lusaka

Gaborone

Doha

Hamburg

Stuttgart

Frankfurt

Dubai

Abu DhabiRiyadh

BerlinKuwait CityHelsinkiCairo

StockholmParisMuscatCopenhagen

Cape Town

Johannesburg

Tel Aviv

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

0

0.58

Santiago

0.58

Bogotá

0.59

Mumbai

0.64

Mexico City

0.76Dallas

0.77Buenos Aires

0.79Singapore

0.85

Shanghai

0.86

Atlanta

0.87

São P

aulo 0.88

Madri

d

0.91Dublin

1.00

London

1.03

Hong Kong

1.03

Sydney

1.04

Johannesburg

1.07

Chicago

1.11 Tokyo

1.15 Paris

1.20

Seattle

1.22

Frankf

urt1.26

San F

rancis

co

1.34

New

York

0.20

0.40

0.60

0.80

1.00

1.20

1.40

0

COUNTRY CITY CAT B AGILE€ / SQ M

FURNITURETRADITIONAL

€ / SQ MFURNITURE AGILE

€ / SQ MSECURITY€ / SQ M

AV TRADITIONAL€ / SQ M

AV AGILE€ / SQ M FEES

IT€ / SQ M

CONTIN-GENCY

TRADITIONAL FIT-OUT TOTAL

€ / SQ M

AGILE FIT-OUT TOTAL

C / SQ M

Select location Determine spec

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

Benchmark (inc import tax)


Apply %

Select spec (inc import tax)

Apply % Range

LOW MED HIGH LOW MED HIGH LOW MED HIGH LOW, MED & HIGH LOW MED HIGH LOW MED HIGH LOW HIGH 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 2,150

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 1,006 1,923

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 2,738 1,568 2,863

Bulgaria Sofi a 320 498 682 108 137 188 165 200 251 40 60 100 180 85 131 246 17% 65 125 10% 773 1,586 857 1,706

Croatia Zagreb 445 540 782 109 138 190 167 201 253 40 60 100 180 85 131 246 21% 65 125 10% 973 1,778 1,052 1,896

Czech Republic Prague 395 506 759 105 133 183 161 194 244 40 60 100 180 85 131 246 17% 65 125 10% 871 1,685 947 1,797

Denmark Copenhagen 588 728 1,192 110 139 191 168 203 255 40 60 100 180 85 131 246 26% 65 125 10% 1,220 2,447 1,292 2,541

Egypt Cairo 525 783 1,142 182 230 317 278 336 422 64 96 160 288 136 209 394 15% 104 200 10% 1,247 2,586 1,383 2,778

Estonia Tallinn 431 522 857 109 138 190 167 201 253 40 60 100 180 85 131 246 14% 65 125 10% 903 1,782 978 1,888

Ethiopia Addis Ababa 768 917 1,409 161 203 279 245 296 372 52 78 130 234 110 170 320 17% 85 163 10% 1,508 2,815 1,606 2,950

Finland Helsinki 775 928 1,382 114 144 198 174 210 264 40 60 100 180 85 131 246 16% 65 125 10% 1,386 2,530 1,442 2,606

France Paris 737 890 1,384 105 132 182 160 193 242 40 60 100 180 85 131 246 18% 65 125 10% 1,344 2,550 1,397 2,620

Germany Berlin 686 884 1,369 103 130 178 157 189 238 40 60 100 180 85 131 246 26% 65 125 10% 1,354 2,687 1,413 2,761

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

COUNTRY CITY CAT B AGILE€ / SQ M

FURNITURETRADITIONAL

€ / SQ MFURNITURE AGILE

€ / SQ MSECURITY€ / SQ M

AV TRADITIONAL€ / SQ M

AV AGILE€ / SQ M FEES

IT€ / SQ M

CONTIN-GENCY

TRADITIONAL FIT-OUT TOTAL

€ / SQ M

AGILE FIT-OUT TOTAL

C / SQ M

Select location Determine spec


Benchmark (inc import tax)


Apply %

Select spec (inc import tax)

Apply % Range

LOW MED HIGH LOW MED HIGH LOW MED HIGH LOW, MED & HIGH LOW MED HIGH LOW MED HIGH LOW HIGH 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

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

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

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+

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BUILD YOUR BUDGET MATRIX


EMEAFIT-OUT COST GUIDE2019/20 Editionwww.cbre.com

KEY CONTACTS

DISCLAIMER 2019 CBRECBRE Ltd has taken every care in the preparation of this report. The sources of information used are believed to be accurate and reliable, but no guarantee of accuracy or completeness can be given. Neither CBRE, nor any CBRE company, nor any director, representative or employee of CBRE company, accepts liability for any direct or consequential loss arising from the use of this document or its content. The information and opinions contained in this report are subject to change without notice.

No part or parts of this report may be stored in a retrieval system or reproduced or transmitted in reprographics, recording or otherwise, now known or to be devised without prior consent from CBRE.

GWS EMEA PROJECT MANAGEMENT

MATTHEW EASTWOODManaging Director Project Management, EMEAt: +44 (0) 7960 879 605 e: [email protected]

NICHOLAS WINTERClient Solutionst: +44 (0) 2032 576 732e: [email protected]

ALEX ROSEDigital Sales EMEAt: +44 (0) 7900 737 876e: [email protected]

GWS EMEA COST CONSULTANCY

SAM BARNESCost Consultancy Platform t: +44 (0) 7796 192 042 e: [email protected]

PENNY MOCINICost Consultancy Platform t: +44 (0) 7920 701 025 e: [email protected]

AUTHORS

JESS WEST t: +44 (0) 7867 189 982 e: [email protected]

TAPIWA MWELA t: +44 (0) 7384 876 933 e: [email protected]

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