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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
6EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT5
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
8EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT7
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
10EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT9
MEDIUM SPECIFICATION
RECEPTION
COFFEE LOUNGE
COLLABORATION AREAMEETING ROOMWORKPOINTS
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
12EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT11
HIGH SPECIFICATION
RECEPTION
COFFEE LOUNGE
COLLABORATION AREAMEETING ROOMWORKPOINTS
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%
16EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT15
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
For more detail please contact
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
TV/signage screen fed from client IPTV or signage system
Large meeting rooms
Single LED screen with wired presentation facilities and a desktop conference phone
Dual LED screen with the addition of wireless presentation system, touch screen controls and built in audio conferencing with ceiling speakers
As per the medium specification with the addition of HD video conferencing and interactive collaboration tools such as 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
TV/signage screen fed from client IPTV or signage system
Lift lobby No AV TV screen fed direct from building TV distribution
TV/signage screen fed from client IPTV or signage system
Large meeting rooms
Single LED screen with wired presentation facilities and a desktop conference phone
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
20CBRE PROJECT MANAGEMENTEMEA FIT-OUT COST GUIDE19
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
t: +44 (0)7894 255 672 e: [email protected]
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
26CBRE PROJECT MANAGEMENTEMEA FIT-OUT COST GUIDE25
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
t: +44 (0)7798 656 127 e: [email protected]
For more detail please contact
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.
28EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT27
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
t: +44 (0)20 7182 3608 e: [email protected]
For more detail please contact
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
30EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT29
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
32EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT31
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.
34EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT33
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
t: +44 (0)20 3257 6507 e: [email protected]
For more detail please contact
GRAHAM BURRELLTax Depreciation, EMEA
t: +44 (0)207182 2092 e: [email protected]
For more detail please contact
36EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT35
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
For more detail please contact
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
38CBRE PROJECT MANAGEMENTEMEA FIT-OUT COST GUIDE37
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
t: +44 (0)207 182 3348 e: [email protected]
For more detail please contact
40EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT39
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)
Select traditional or agile layout and spec level (inc install, logistics and 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
Select traditional or agile layout and spec level (inc install, logistics and import tax)
Benchmark (inc import tax)
Select traditional or agile layout and spec level (inc install, logistics and 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
42EMEA FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT41
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]