ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
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ASIA
PACIFIC
FIT-OUT
COST
GUIDE
Occupier Projects 2016/17 Edition
FOREWORD
What is the holistic cost over the The evolution of the Asia Pacific Cost
lifecycle of the corporate office? Guide into a more holistic guide was a
natural progression from the “how much
is it going to cost?” topic covered in 2014,
to the “what solution will provide the best
value?” focus point in 2015.
Martin Woods
To continue providing our clients with the best
Senior Managing Director, Asia Pacific
integrated service, in the 2016 edition we
CBRE Project Management
have addressed commercial office lifecycle
Global Leadership & Platform
costing through the modeling and regional
comparisons of key common costs across
capital expenses, operating expenses and
leasing for Grade A buildings. Again, all the
indices and tables provided are the result
of analysis of empirical data from CBRE
assignments covering the three major cost
elements.
As always, we are looking at ways to further
improve this guide and provide you, the client,
with the most relevant data to guide your real
estate decisions so please let us have your
feedback.
CBRE TOKYO OFFICE
CBRE PROJECT MANAGEMENT 1
CONTENTS
INTRODUCTION 5
2016 APAC FIT-OUT COST INDEX 7
FIT-OUT COST BENCHMARKING TABLE 8
FIT-OUT COST TREND FROM 2014 TO 2016 11
LEASING 14
TYPICAL LEASE PERIOD 16
FACILITIES MANAGEMENT COST 18
NET PRESENT LIFECYCLE COSTING 22
ACTIVITY-BASED WORKING: FM COST CONSIDERATIONS 28
REGIONAL FIT-OUT COST ANALYSIS 30
2016 GLOBAL FIT-OUT COST INDEX 44
Disclaimer: CBRE Ltd has taken every care in the preparation of this document. The sources of information used are believed to be accurate and reliable, but no guarantee of accuracy or completeness can be given.
The cost estimation are intended to be guides only. Please contact our market leaders, provided within this document or available from our cbre.com website, who can provide an accurate cost estimate based on your
specific requirements.
Neither CBRE, nor any director, representative or employee of CBRE company, accepts liability for any direct or consequential loss arising from the use of this document. The information and opinions contained in
this document are subject to change without notice. No part or parts of this document 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.
2 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 3
MACRO-ECONOMIC FACTORS INTRODUCTION
Driving Dramatic Shifts Lifecycle costing guides businesses
2015
Currency Volatility Inflation
to make the most informed 2014
Fit-out, Leasing
2016
decision for their Real Estate Fit-out Cost Lifecycle Costing
& ABW options
2015-2017 investment strategy
2013-2015
As part of CBRE’s commitment to delivering Guide Assumptions
-5.1% 4.05% advantage for all of our clients, we are
Indonesia • The commercial tower is a Grade A office building within the
-29% 6.58% delighted to present the third installment of
Central Business District with the following characteristics:
-5% 2.01% CBRE’s Asia Pacific Cost Guide. The 2016
Australia - A modern, flexible, column-free footprint of at least 15,000
-29% 2.02% edition provides industry professionals with a square feet
point of reference for capital costs, operational - Total floor area of at least 300,000 square feet
1.7% Japan 0.25%
-24% 1.78% expenditure, and leasing costs to make more - Sheltered parking GFA ratio of 1/2000
informed decisions on real estate strategy. - Accessibility to public transport
-11.1% Malaysia 2.74% • Commercial office assumptions:
-24% 2.66% CBRE has gathered data and solicited feedback
- Office size between 25,000 to 30,000 square feet.
from a cross-section of clients to derive
-0.8% 0.87% - Density range of 1 workstation to 90 to 110 square feet
New Zealand information that will affect today’s commercial
-17% 0.76% - Fixed 1-1 desk ratio
real estate decisions • Fit-out costs include:
-6.5% Thailand 1.29% - Consultants fees
-11% 0.49%
To further develop the APAC Fit-Out Cost Guide - Builders works
-2.7% Singapore 0.49% we have tried to take a broader view which - M&E works
-10% 0.25% - Standard office FF&E
has enabled us to assess the cost of the facility
-4.5% - Structured cabling
India 5.37% through to the end of its lifecycle. We have • Exclusions:
-10% 5.94% termed this Net Present Lifecycle Costing and - Telephony/IT/AV/Security equipment
-2.6% Philippines 2.67% used the data obtained to create a Net Present - Consideration for building abnormalities or variances such as
-7% 2.82% Lifecycle Cost Index. onerous landlord requirements
-4.3% 1.25%
-7%
Taiwan
0.44%
Additional Guide Assumptions
for FM Costs
-3.6% Vietnam 2.85%
-4% 2.82% • Facility Management costs include:
- Cleaning
-6.4% South Korea 1.47%
-3% 1.00% - Mechanical & Electrical Maintenance
- Security Services
-6.2% China 2.26% - Utilities
-2% 1.73% - Pest control
0.0% 2.30% - Mailroom
Hong Kong
Source: CBRE Asia Pacific Research Jun 2016 0% 3.81% - Reception
- Landscaping
- Confidential waste disposal
As currencies in APAC generally continue to slide against the USD at rates at least equal to, or greater than, domestic inflation, a pattern of falling cost would appear when reported in USD in all locations except Hong Zac Zdravev • Exclusions:
Kong (see Cost Trend, page 11). The cost of construction in local currencies however are showing gradual increase and need to be considered against revenue generated in the local market when making commercial office Senior Director, Asia Pacific - Dedicated Chiller and Generator maintenance
investment decisions. Pipeline projects should be identified considering lease expiry and changes in headcount, as well as macro and micro economic factors. CBRE Project Management - Property Tax
Global Leadership & Platform - Management Fee
4 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 5
HISTORIC FIT-OUT COST INDEX 2016 APAC FIT-OUT COST INDEX
Hong Kong
Tokyo
Sydney Hyderabad Seoul
Hyderabad 1.27 1.23 1.27
Seoul Bangalore 1.20 Sydney
Bangalore
1.22 Despite the continued decline of JPY, award of 1.18
0.49
the 2020 Tokyo Olympics buoyed the market and
Mumbai 0.56 Hong Kong inspired confidence in the construction industry. Mumbai Tokyo
1.12
0.60 0.52 1.17
0.56
Riding the high demand for commodities from
HCMC 0.76 1.11 Singapore China, the AUD continued to perform well 0.62
Jakarta Perth
1.12
against the USD.
0.87 0.77
1.07
Taipei Guangzhou
0.88
1.04 HCMC 1.06 Auckland
0.78
2014 Manila 0.98 1.00 Beijing
Cost Index 1.00
Jakarta Kuala Lumpur
Shanghai 0.82
1.04
Taipei Beijing
Seoul
Hyderabad 1.21 Hong Kong
0.82
1.13 1.00
Bangalore Beijing
Bangkok Shanghai
1.02 0.83
Mumbai 0.49 Tokyo 0.98
JPY hit a five-year low in June 2015. 0.54 1.01
0.86
0.59 Manila Melbourne
0.98
AUD slide against the USD started in 2H HCMC 0.75 1.01 Sydney 0.95 0.96
2014 & continued to drop until end of 2015. Kuala Lumpur Singapore
0.75 1.00 Brisbane Guangzhou
Jakarta Shanghai
0.81
0.98
Taipei 0.83 0.89 Guangzhou
0.83 0.87 Apart from some notable exceptions in inflation rates, foreign exchange volatility is still the main factor driving the dramatic shifts in the Asia Pacific
Index. The index data is generated through the use of CBRE’s Project Management platform used for projects across Asia Pacific.
Bangkok Singapore
Manila Kuala Lumpur 2015
Cost Index
Disclaimer:
This graph shows the capital expense multiplier for the design and construction of the same office project across Asia Pacific using Shanghai as the unit index. This index should be used as a guide only, for actual
project budget estimates please contact the CBRE Project Management Division Lead in your city.
6 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 7
FIT-OUT COST
BENCHMARKING
TABLE
8 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 99
FIT-OUT COST BENCHMARKING TABLE FIT-OUT COST TREND FROM 2014 TO 2016
The graph below represents a blended average for each location.
BASIC MEDIUM HIGH
160
Reinstatement
Region Country City US$/sq.ft US$/sq.ft US$/sq.ft
US$/sq.ft North Asia Greater China Pacific South East Asia South Asia
South Korea Seoul 91 128 166 12
140
North Asia
Japan Tokyo 84 126 168 44
Beijing 75 105 156 13
120
China Shanghai 71 100 152 12
Greater China Guangzhou 65 96 148 11
Taiwan Taipei 65 86 113 11 100
Hong Kong Hong Kong 84 125 200 23
Sydney 85 115 180 17
80
Melbourne 73 103 141 14
Australia
Pacific Perth 78 113 171 14
Brisbane 70 100 135 14 60
New Zealand Auckland 65 114 163 15
Philippines Manila 50 89 129 9
40
Vietnam HCMC 61 84 105 3
nd
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Ko
iji
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Indonesia Jakarta 57 81 110 5
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South East Asia
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Br
Sh
Ba
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Malaysia Kuala Lumpur 64 87 125 14
Si
H
M
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Singapore Singapore 80 109 127 14
2014 2015 2016
Thailand Bangkok 46 84 134 10
Mumbai 47 66 85 2 In Pacific, why the rebound in cost per square foot in 2016? JESS SURMAN
South Asia India Hyderabad/Kolkata/Pune 40 55 70 2 1. Smaller leasing deals resulting in density changes and increasing services costs by unit of area. Director, CBRE Project Management
Bangalore/Chennai/Delhi 43 60 78 2 2. Old stock - buildings requiring more CAPEX to perform the way the fit-outs require. Perth, Western Australia
Please note that the cost data only includes Consultancy fees, Builder Works, M&E works and Fixed Various cost trends have formed following the analysis of empirical data
Furniture and Equipment (FF&E) and should only serve as a guide reference across the region. gathered from completed projects managed by CBRE. Inflation, currency
This is not meant to be a budget document and CBRE Project Management Division Leads in each volatility and unique in-location market conditions each had a different degree
market should be approached to support on project specific budget estimates.
of impact on the fit-out rates.
Typical reinstatement rates for offices may vary to different degrees depending on the reinstatement
requirement.
Royston Toh
Senior Manager, Asia Pacific
CBRE Project Management
Global Leadership & Platform
10 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 11
PROJECT STANDARD MATRIX
PROJECT STANDARD PROJECT STANDARD
Description of items Basic Medium High Description of items Basic Medium High
BASIC OFFICE FUNCTIONALITY SYSTEM FURNITURE
Elaborate Pantry and Breakout Areas Flexibility in Workspace Churn & Expansion
Basic Pantry fit-out Powerhoop as an Uninterrupted Footprint Division
Very open office layout Resolved Design & Seamless Connectivity
M&E Redundancy N N+1 2N Simplicity with reduced kit-of-parts
MEETING ROOMS Unified look and combined usage
Integrated A/V and lighting control Cable trough and various cable outlet application
Basic A/V TASK CHAIRS
Projector & Audio/Telephone Asymmetrical lumbar support system
Tables and Chairs only Pelvic support
SECURITY 4-D arms and seat pan adjustments
Min. 3 levels of security Upright back lock
1 level of security Supportive Mesh with tension zones
No electronic security Synchronized tilt mechanism
WALL & PARTITIONS Supportive Mesh with optional upholstery back
Plasterboard with fabric finish /
to slab with high acoustic rating)
Double glazed partition
Single glazed partition
Plasterboard walls
FLOOR FINISHES
Marble/Stone Slab Finishes
Carpet Tile
Vinyl Sheets or basic concrete screed finishes
12 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 13
LEASING
The graph below provides the leasing costs per sq ft in USD for Prime and Grade A building in each market.
Leasing wheel – Prime Rent Manila
Hong Kong
257 Beijing
Bangkok Tokyo
174
Bangalore Shanghai
148
Auckland 118 Delhi
31
31
33 106
Melbourne
35 Singapore
39 92
39 81
45
Gurgaon 47 78 Mumbai
57 71
59 62 62
Perth Sydney
Brisbane Seoul
Taipei HCMC
Guangzhou Jakarta
Beijing
Leasing wheel – Grade A Hyderabad 117
Tokyo
Kuala Lumpur 116 Hong Kong
99
CBRE ORLANDO OFFICE Manila Singapore
85
Bangalore Shanghai
85
20
While headline rental rates remain a critical component for any office Gurgaon
24 11 Delhi
27
user, we are witnessing an increased emphasis placed on a more holistic 27
70
understanding of occupancy factors including how location, fit-out, FM cost Auckland
29 63 Mumbai
30
and workplace program can support and drive corporate objectives. 35
53
43
Bangkok 38 Seoul
42
39 39
40 41
Manish Kashyap Melbourne Brisbane
Regional Managing Director,
Asia Pacific Sydney Taipei
Brokerage Guangzhou Jakarta
Perth HCMC
14 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 15
TYPICAL LEASE PERIOD
The Asia Pacific geographical map represents the typical lease period by location.
NEW DELHI TOKYO
The periods are further categorized into 3 main groups namely 3-year lease, 5 to
6-year lease and 8 to 9-year lease. Each period must be carefully considered by
corporate clients when they are deciding to enter a new market, looking for a new HYDERABAD SEOUL
lease space or renewing their existing lease terms.
MUMBAI BEIJING
CHENNAI SHANGHAI
BANGALORE TAIPEI
GUANGZHOU
BANGKOK
HONG KONG
KUALA LUMPUR
Markets such as the Pacific region tend to have longer MANILA
lease terms whereas most markets in Asia have terms SINGAPORE
ranging from 3 to 5 years. This is primarily due to HCMC
greater market volatility in Asia with landlords taking JAKARTA
advantage of rental cycles. More recently BRISBANE
there has been a trend for occupiers to PERTH
secure longer lease periods, especially for SYDNEY
larger build-to-suit or special use facilities
where lease terms of 5 to 9 years can be
achieved.
AUCKLAND
MELBOURNE
3 YEARS LEASE 5-6 YEARS LEASE 8-9 YEARS LEASE
BEIJING HCMC SEOUL MANILA NEW DELHI MELBOURNE
SHANGHAI JAKARTA TOKYO SINGAPORE BANGALORE AUCKLAND
GUANGZHOU KUALA LUMPUR TAIPEI PERTH CHENNAI
HONG KONG BANGKOK HYDERABAD BRISBANE SYDNEY
MUMBAI
16 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 17FACILITIES
CBRE MADRID OFFICE
MANAGEMENT
COST
18 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 19FACILITIES MANAGEMENT COST
The graph below indicates the unit rates per sqft in USD for various components annually. Rates in different locations are directly affected by the labor
market condition and local tariff rates.
CLEANING SECURITY SERVICES PESTS CONTROL LANDSCAPING
The operating cost of a corporate office is classified into 9 key components namely, waste, landscaping and reception. Depending MAILROOM RECEPTION CONFIDENTIAL WASTE M&E UTILITIES
defined as the Facilities Management (FM) cleaning, M&E maintenance, pest control, on the facility, the cost may differ on the final Sydney 1.34 0.91 1.62 1.80 2.25 1.61 9.75
cost in this document. The FM cost shall be security services, utilities, mailroom, confidential service standard adopted by the client.
Singapore 1.62 1.05 1.48 1.64 2.03 1.23 9.26
Perth 1.25 0.84 1.55 1.72 2.09 1.50 9.17
Key Components Tokyo 2.11 0.58 1.62 1.80 1.92 0.84 9.07
Auckland 1.21 0.81 1.44 1.60 2.02 1.45 8.74
Melbourne 1.12 0.75 1.55 1.72 1.87 1.34 8.55
Brisbane 1.08 0.73 1.55 1.72 1.80 1.29 8.35
Seoul 1.25 0.88 1.62 1.80 1.45 0.98 8.16
Hong Kong 1.31 0.39 1.33 1.48 1.64 1.49 7.81
CLEANING SECURITY SERVICES PESTS CONTROL Taipei 1.35 0.39 1.30 1.44 2.07 0.89 7.62
Beijing 1.11 0.87 0.97 1.08 1.87 1.45 7.56
Shanghai 1.07 0.83 1.04 1.16 1.79 1.39 7.48
Guangzhou 0.96 0.75 1.04 1.16 1.62 1.25 6.96
LANDSCAPING MAILROOM RECEPTION Jakarta 1.55 1.11 0.86 0.96 1.40 0.80 6.87
Kuala Lumpur 0.87 0.31 0.86 0.96 1.92 1.30 6.38
Bangkok 1.13 0.40 0.86 0.96 0.51 0.88 4.86
Manila 0.92 0.40 0.86 0.96 0.66 0.76 4.67
Mumbai 0.86 0.45 0.65 0.72 0.75 0.85 4.39
CONFIDENTIAL WASTE MECHANICAL & UTILITIES
ELECTRICAL MAINTENANCE Bangalore 0.78 0.41 0.65 0.72 0.69 0.78 4.13
Hyderabad 0.72 0.38 0.68 0.76 0.63 0.72 3.97
Guide Assumptions for FM cost 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00
• The commercial tower is a Grade A office building within the • Facility Management costs include: • Exclusions:
Central Business District with the following characteristics: - Cleaning - Dedicated Chiller and generator maintenance FM Industry professionals would concur that benchmarking spend
- A modern, flexible, column-free footprint of at least 15,000 - Mechanical & Electrical Maintenance - Property Tax
square feet - Security Services - Management fee across markets and industries is a challenging exercise due to the
- Total floor area of at least 300,000 square feet - Utilities numerous variables included within the spend categories. However,
• Commercial office assumptions: - Pest control
- Mailroom
what it does allow us to do is to identify anomalies and question
- Office size between 25,000 to 30,000 square feet.
- Density range of 1 workstation to 90 to 110 square feet - Reception further the operating expenses we manage.
- Fixed 1-1 desk ratio - Landscaping
Cameron Ahrens
- Confidential waste disposal
Executive Director, Asia Pacific
20 ASIA PACIFIC FIT-OUT COST GUIDE CBRE Enterprise Facilities Management CBRE PROJECT MANAGEMENT 21CBRE TOKYO OFFICE
NET PRESENT
LIFECYCLE
COSTING
22 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 23
23NET PRESENT LIFECYCLE COSTING
The CBRE termed Net Present Lifecycle Costing (NPLCC) is an index that assumes a typical 5 year investment time frame
The below graph indicates the NPLCC proportion percentage between the 4 main cost components of the corporate real estate.
and not necessarily the lease period. NPLCC is a guide that benchmarks potential capital and operating expenses
across the region over the investment period brought forward to present value. NPLCC provides holistic cost data to
clients, enabling informed decisions and guides real estate strategies.
FIT-OUT COST LEASING COST FM COST REINSTATEMENT
NPLCC
FIT-OUT COST LEASING COST FM COST REINSTATEMENT (USD/Sqft) 6% 5% 5%
10% 10% 9% 7% 8% 6% 6%
15% 9% 9% 11% 13% 10% 11% 12% 11%
Tokyo $126 $484 $38 673 13% 13% 13%
Beijing $105 $488 $33 635
Hong Kong $125 $413 $34 588 38% 46%
58% 58% 53% 43% 40% 49% 50% 48% 56%
60% 55% 58% 55%
Singapore $109 $354 $39 511 75% 78% 72% 69% 70% 77% 72%
Shanghai $100 $354 $32 495
Seoul $128 $221 $35 392
Delhi $60 $292 $19 372
Mumbai $66 $263 $20 351
Sydney $115 $158 $42 327
Perth $113 $163 $40 325 46% 41% 42%
36% 40%
31% 31% 35% 32% 35% 35% 31% 33%
Brisbane 28% 29%
$100 $179 $36 325 19% 20% 21% 21% 19%
16% 17%
Taipei $86 $175 $32 301
Guangzhou $96 $163 $30 297
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Jakarta $81 $171 $31 286
K
Auckland $114 $121 $37 282
Bangkok $84 $125 $21 237 Corporate Real Estate needs to take into account the total cost of an asset
Manila $89 $100 $20 216 when presenting the cost/benefit analysis to the business for real estate
Kuala Lumpur $87 $83 $28 207
decisions. CBRE has provided a holistic cost guide as well as Workplace
Bangalore
solutions to support corporate objectives.
$60 $113 $19 193
Gurgaon $60 $113 $19 193
Hyderabad $55 $46 $18 121 Nick Lee
Regional Director, Asia Pacific
$0 $100 $200 $300 $400 $500 $600 $700
CBRE Project Management
Assumptions: Grade A office building and defined as the gross lease cost. Medium standard office fit-out construction rates. FM cost will be adopting the CBRE Research y-o-y inflation rates and the discount rate for NP Global Leadership & Platform
analysis is 10%.
24 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 25NET PRESENT LIFECYCLE COSTING
Tokyo
Hyderabad Beijing
1.36
1.28 Hong Kong
Gurgaon
1.19
Bangalore Singapore
1.03
Kuala Lumpur 0.39 Shanghai
0.39 0.24 1.00
0.42
Manila Seoul
0.44 0.79
0.48 0.75
Bangkok Delhi
0.57
0.71
0.58 0.66
Auckland Mumbai
0.60
0.60 0.61 0.66 0.66
Jakarta Sydney
Melbourne Perth
Guangzhou Brisbane
Taipei
Through collaboration and extensive data mining from our integrated services, CBRE is able
to provide our clients a concise index and representation of the major cost considerations
for their commercial office investment. The NPLCC provides clients with the advantage of
understanding the full cost over the total lease period. This together with the labour analytics
can help develop real estate strategies that support corporate objectives.
Royston Toh
Senior Manager, Asia Pacific
CBRE Project Management
Global Leadership & Platform
CBRE BALTIMORE OFFICE
26 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 27ACTIVITY-BASED WORKING
FM COST
CONSIDERATIONS
Change Management IT Cost Workplace Manager / Concierge Real-time Occupancy Upgraded FM support Booking system
Continue change management and IT Function needs to be more pro-active in Services Management More frequent cleaning of surfaces and devices Advanced check-in system to monitor utilization
communication support until desired changes managing maintenance and ensuring that (keyboards and phones as they are shared), for meeting rooms and workstations.
Re-shaping FM services to include concierge Real-time information on how space is being
are fully incorporated in attitudes, behaviors the platform that supports mobility (hardware, digitization support.
function. Expansion of roles to being an utilized, space loading monitoring so as to
and culture. bandwidth availability, software) is always ambassador for the new work practices, answer activate reactive/proactive RE and FM actions.
operating at an optimum level. questions about how the new workplace
operates and taking a more proactive role in
ensuring that everything works.
28 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 29REGIONAL FIT-OUT
COST ANALYSIS
30
30 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 31JAPAN COST ANALYSIS – TOKYO TAIWAN COST ANALYSIS – TAIPEI
TOKYO TAIPEI
Tokyo continues to see strong demand from companies looking to expand their footprint or Office investment volume surged mainly driven by solid activity from owner-occupiers. Despite the
upgrade to better buildings. However, some tenants began to delay decisions ahead of the large surge in total investment turnover, the number of transactions remained low, reflecting the ongoing
Tokyovolume of supply due for completion from 2018 onwards. Landlords of buildings that have been lack of investable office assets. On the other hand, owners-occupiers continue to benefit from low
less successful in letting space started to offer more flexible terms. interest rates after the Central Bank cut policy rates.
US$168 US$113
Furniture
Furniture
M&E Works
Hisanao Kajiura 17% M&E Works
James Ho 19%
Builder Works
Builder Works
Senior Director Senior Director Soft Cost
Soft Cost US$86
Tokyo Project Management Taiwan Project Management
US$126
+81 3 52889749 +886 2 77069538 19% 30%
hisanao.kajiura@cbre.co.jp 18% 39% james.ho@cbre.com US$65
US$84 19%
29%
16% 29%
39%
37% 44%
36%
44%
33% 43%
34%
13% 10% 8% 9% 8% 7%
Basic Medium High Basic Medium High
SOUTH KOREA COST ANALYSIS – SEOUL
shanghai
HONG KONG COST ANALYSIS
SEOUL HONG KONG
seoul
Demand from the co-working sector is steadily rising. More firms are considering implementing Serviced office and co-working space providers continued to register solid demand for space.
workplace strategy, partly from a cost saving and space efficiency angle. A number of firms have Decentralisation activity is expected to increase as secondary space and new supply in areas such
already implemented measures such as hot desking and smart offices. as Kowloon East provides options for occupiers currently in expensive submarkets.
US$200
US$166 Furniture
Furniture M&E Works
21% Builder Works
M&E Works
Bruce Lee 20% Steve Palfrey Soft Cost
US$128 Builder Works
Senior Director Soft Cost Senior Director US$125
20%
South Korea Project Management 32% Hong Kong Project Management
19%
+822 21705870 US$91 +852 28202996
36%
bruce.lee@cbrekorea.com 15% 23% steve.palfrey@cbre.com.hk US$84
15% 38%
25%
40%
38%
45% 35%
45%
33%
34%
15% 12% 8%
13% 10% 8%
Basic Medium High
Basic Medium High
32 ASIA PACIFIC FIT-OUT COST GUIDE mumbai CBRE PROJECT MANAGEMENT 33CHINA COST ANALYSIS – BEIJING/ CHINA COST ANALYSIS – SHANGHAI
GUANGZHOU
BEIJING SHANGHAI
beijing Beijing saw stronger demand from domestic companies but the general focus among Shanghai enjoyed a positive quarter as market sentiment remained positive. Solid leasing demand
multinationals continued to be on cost saving or renewals. The period saw some surrender leases was recorded across a wide range of sectors but occupiers took longer to make decisions due to
and relocations to cheaper areas. the introduction of the new VAT.
US$156 shanghai
Furniture
M&E Works
19% Builder Works US$152 Furniture
Catherine Xiong Soft Cost Bahtiyar Tay
M&E Works
Senior Director Senior Director
Builder Works
China Project Management US$105 China Project Management 20% Soft Cost
+86 10 85880788 +86 21 24011403
catherine.xiong@cbre.com.cn
21% 40% bahtiyar.tay@ cbre.com.cn
US$75 US$100
20% 37% 20% 41%
US$71
34%
31% 20% 38%
29%
28% 35%
guangzhou 18% 13% 10%
29%
28%
Basic Medium High 28%
17% 14% 10%
hyderabad/kolkata/pune
GUANGZHOU Furniture Basic Medium High
M&E Works
US$148 Builder Works
Soft Cost shanghai
US$96 19%
19%
US$65 37%
13% 37%
36%
34%
33%
33%
18% 11% 10%
Basic Medium High
34 ASIA PACIFIC FIT-OUT COST GUIDE new delhi/bangalore/chennai CBRE PROJECT MANAGEMENT 35INDIA COST ANALYSIS – MUMBAI/ INDIA COST ANALYSIS – NEW DELHI/
HYDERABAD/PUNE/KOLKATA BANGALORE/CHENNAI
MUMBAI NEW DELHI/ BANGALORE/ CHENNAI
Co-working space is gaining traction, with several new openings in Bangalore and Mumbai in New Delhi is still registering solid demand for front office space, activities mainly focus on
mumbai recent quarters. Most providers are domestic operators focusing on catering to start-ups. Among Gurgaon, where IT companies are particularly active. Many companies in Bangalore have capped
domestic firms, particularly those in the financial services sector, there is still a strong focus on
new delhi/bangalore/chennai
their growth as city centre rents are quite high.
acquiring properties for self-use,especially in Mumbai.
US$85
Furniture
15% M&E Works US$78
Gurjot Bhatia Builder Works Furniture
Soft Cost 14% M&E Works
Managing Director US$66 Builder Works
India Project Management Soft Cost
14% US$60
+91 1142490200
gurjot.bhatia@cbre.com 44% 14%
US$47
16% 44% 44%
US$43
13% 43%
42%
30%
29% 42%
28% 30%
29%
14% 13% 11% 28%
Basic Medium High 17% 14% 12%
mumbai HYDERABAD/ KOLKATA/ PUNE Basic Medium High
hyderabad/kolkata/pune
Recent quarters have seen stronger leasing activity in Hyderabad which offers lower rents and is
new delhi/bangalore/chennai
emerging as an alternative to Bangalore. The city was the country’s original IT hub and is returning
to prominence after an end to several years of political instability.
US$70
Furniture
13% M&E Works
Builder Works
US$55 Soft Cost
13% 41%
US$40
12% 40%
40% 28%
28%
28%
19% 18%
20%
Basic Medium High
36 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 37SOUTH EAST ASIA COST ANALYSIS – SOUTH EAST ASIA COST ANALYSIS –
SINGAPORE/KUALA LUMPUR VIETNAM/BANGKOK
SINGAPORE HCMC HANOI
Providers of co-working space are emerging as a new driver of demand. Recent quarters have The unchanged supply in office space allowed Large-scale office buildings are being actively
seen several major operators pre-commit to new space. Traditional serviced office providers are HCMC office market to absorb the remaining fitted out for launch, which will add up both
singapore
responding by offering similar product. Landlords are responding to weak demand by being space in both Grade A and B. However, by grade A and B stocks. This is expected to put
creative to retain tenants such as by providing a capital contribution towards fit-out costs and other the end of 2016, there will be a new wave of downward pressure on rents.
incentives. US$127 supply in decentralized area, expecting the US$105
Furniture
Furniture market to change in both rent and vacancy
M&E Works M&E Works
Garth Chapman 20% rate. Builder Works
Builder Works US$84 31%
Senior Director Soft Cost Soft Cost
SEA Project Management US$109
+65 62291114 28%
20% US$61
garth.chapman@cbre.com.sg 38%
22% 35%
US$80 40% 37%
16% 38%
27%
40% 36%
27%
33% 30%
34% 10% 8% 7%
10% 7% 6%
Basic Medium High
Basic Medium High
BANGKOK
KUALA LUMPUR The current market condition of low vacancy rates and rising rents is expected to continue due
The coming few years will continue to be a tenants’ market with more quality office space
to the limited future supply with reasonable level of demand in the next few years. However, after
available in the market and owners/investors may experience stiff competition in retaining
KL 2018, the market condition could change if all the planned office developments (1 million sq. m.)
existing tenants or leasing out new space. Prime rentals are expected stay stable, but may
were to start at the same time. US$134
see a dip in occupancy rates with the increase competitiveness. Furniture
M&E Works
US$125 16% Builder Works
Furniture Soft Cost
M&E Works
23% Builder Works
Soft Cost
US$87 US$84
39%
22% 17%
US$64 38%
17%
38% US$46 39%
15%
40%
32% 38% 39%
31%
36%
32%
35%
11% 9% 7% 12% 8% 6%
38 ASIA PACIFIC FIT-OUT COST GUIDE Basic Medium High Basic Medium High CBRE PROJECT MANAGEMENT 39SOUTH EAST ASIA COST ANALYSIS – PACIFIC COST ANALYSIS – SYDNEY/
JAKARTA/MANILA MELBOURNE
JAKARTA PACIFIC
With the ongoing influx of new office buildings for the next 1-2 years and given that for the past Landlords are reviewing how they interact with tenants as they seek to become more customer-
1 year, the total amount of demand has been vastly superseded by the total amount of supply, centric. One popular measure has been to introduce simplified and shorter-form leases. Occupiers
jakarta
occupancies and rental rates will have further adjustments. Occupancy rates of CBD office in Q2 is are pushing landlords to install high quality end-of-trip facilities for employees. There is demand
still on the downhill trend due to limited demand with strong supply situation. for co-working space but some concern over the longevity of this sector.
US$110 SYDNEY
Furniture
M&E Works
Ian Rea
Sydney enjoyed solid leasing activity supported by strong white collar employment growth.
Garth Chapman 23% Builder Works
Managing Director Financial, business services and education & training firms were especially busy.
Senior Director Soft Cost
SEA Project Management
US$81 Pacific Project Management US$180
+65 62291114 +61 2 9333 9102 Furniture
21% M&E Works
garth.chapman@cbre.com.sg ian.rea@cbre.com.au 19%
US$57 Builder Works
36% Soft Cost
18% US$115
37% 19%
37%
38% US$85
33% 15% 37%
32% 37%
32%
34%
12% 10% 8% 31%
32%
Basic Medium High
16% 13% 10%
MANILA
Buildings slated for turnover in the next 2 years continue to be traded at fast rates as more Basic Medium High
manila
companies, both business process outsourcing (BPO) and non-BPO, help build up this quarter’s MELBOURNE
tenant representation sales. US$129 Both enquiry levels and the volume of leasing transactions recorded a steady increase in
Furniture
M&E Works Melbourne. Technology firms were noticeably more active this quarter.
16% Builder Works
Soft Cost US$141
Furniture
M&E Works
19%
Builder Works
US$89 Soft Cost
39% US$103
17%
18%
36%
US$73
US$50 39% 14% 37%
15%
35%
38% 39% 35%
33%
36% 33%
35%
18% 12% 10%
12% 8% 6%
Basic Medium High
40 ASIA PACIFIC FIT-OUT COST GUIDE Basic Medium High CBRE PROJECT MANAGEMENT 41PACIFIC COST ANALYSIS – BRISBANE/PERTH PACIFIC COST ANALYSIS – AUCKLAND
BRISBANE AUCKLAND
Brisbane continued to see a certain degree of uncertainty but the worst appears to be over. Lease
expiries are driving deals. More companies are taking smaller spaces and/or moving to a flexible US$163
working environment. Furniture
M&E Works
US$135 15% Builder Works
Furniture Soft Cost
M&E Works
US$114
Ian Rea 21%
Builder Works 12%
Managing Director 32%
US$100 Soft Cost
Pacific Project Management US$65
+61 2 9333 9102 20%
36% 10% 30%
ian.rea@cbre.com.au
US$70
27%
14% 36% 36%
38%
37% 40%
32%
32% 23% 20% 17%
33%
Basic Medium High
16% 12% 11%
Basic Medium High
PERTH
In Perth the period saw flight to quality across all sectors driven by expiring leases. Occupiers in this
market are taking advantage of landlords’ weakness to secure attractive deals.
US$171
Furniture
M&E Works
19% Builder Works
Soft Cost
US$113
18%
35%
US$78
17% 35%
34%
33%
31%
32%
17% 16% 13%
Basic Medium High
42 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 432016 GLOBAL FIT-OUT COST INDEX
The 2016 edition cost guide included the CBRE hope that this can guide corporate clients purposes. The index wheel should not be
global cost index to benchmark similar projects to review the cost globally but would appreciate replicated or adopted for other documentation
in key markets across the globe. For more that a CBRE professional is engaged in-location without direct consultation with CBRE.
detailed breakdown by cities within the region, to support in producing a more specific budget
please refer to the respective regional cost estimate for any form of budgetary approval
guides.
New York City
1.25
Bangalore Frankfurt
1.20
0.55
Sao Paulo Hong Kong
0.84 1.11
0.91
1.02
Mexico City Sydney
0.92
1.00
Los Angeles London
44 ASIA PACIFIC FIT-OUT COST GUIDE CBRE PROJECT MANAGEMENT 45KEY CONTACTS CBRE CONTACTS ACKNOWLEDGEMENTS Martin Woods Royston Toh Senior Managing Director, Senior Manager CBRE Project Management, Asia Pacific CBRE Project Management, Asia Pacific +852 2820 2869 +65 6229 1165 martin.woods@cbre.com.hk royston.toh@cbre.com.sg Zac Zdravev Brendan Bruce Senior Director Managing Director CBRE Project Management, Asia Pacific Haworth, South East Asia +65 6326 1661 zac.zdravev@cbre.com.sg Nick Lee Regional Director CBRE Project Management, Asia Pacific +852 2820 8178 nick.lee@cbre.com.hk Cameron Ahrens Executive Director CBRE Enterprise Facilities Management, Asia Pacific +65 6229 1122 cameron.ahrens@cbre.com.sg Peter Andrew Regional Director CBRE Workplace Strategies, Asia Pacific +65 6326 1677 peter.andrew@cbre.com.sg Rohini Saluja Executive Director, Asia Pacific CBRE Advisory & Transaction +65 6326 1665 rohini.saluja@cbre.com.sg © 2016 CBRE Group, Inc. All Rights Reserved. CBRE 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 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 any form or by any means electronic, mechanical, reprographics, recording or otherwise, now known or to be devised without prior consent from CBRE. Agency Licence No.: L3002163I.
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