CBRE EMEA Cost Guide 2018 - 2019 by CBRE-JAPAN

EMEA FIT- OUT COST GUIDE 2018/19 EDITION

CONTENTS 2 FOREWORD

PROCUREMENT & PROGRAMME

WORKPLACE TRENDS

CAPITAL PLANNING

TRADITIONAL VS. AGILE WORKPLACE

CONSTRUCTION SERVICES

6 LAYOUTS

TAX DEPRECIATION

SPECIFICATIONS (LOW, MEDIUM, HIGH)

35 SUSTAINABILITY

PRICING ASSUMPTIONS

REGIONAL MARKET OUTLOOK

CAT B CONSTRUCTION COSTS

FIT-OUT COST INDEX | EMEA

TECHNOLOGY

FIT-OUT COST INDEX | GLOBAL

FURNITURE

NEW FOR 2018 | ONLINE CALCULATOR

PROFESSIONAL FEES

BUILD YOUR BUDGET MATRIX

BUSINESS TRANSITION & MOVE MANAGEMENT

KEY CONTACTS

REINSTATEMENT

EMEA FIT-OUT COST GUIDE

FOREWORD Welcome to the Fit-Out Cost Guide 2018/19, the publication that remains the most comprehensive analysis of office fit-out pricing in Europe, the Middle East and Africa.

Since its inception in 2013, the Guide has sought to answer the question most commonly asked by our clients: “How much will it cost me to…?”. By building on the quantity and quality of our data, our guides have become increasingly powerful tools which help build stage one cost plans, verify third-party programmes, and normalise in-house benchmarking. Now, in our sixth year of producing the Guide, we can also provide detailed analysis of trends in the fit-out market across the region. This year we are excited to introduce the Fit‑Out Online Calculator to the Guide, a tool which allows its user to create fit-out project budgets online, see page 41 for more information. We know that technology impacts real estate performance and potential, revealing dynamic insights and actionable strategies. That’s why CBRE has made notable investments to bolster our technology suite, including Kahua, our cloud-based and collaborative project management solution, Floored, our interactive 3D environment creation tool, and our new employee experience capability, CBRE360.

As the Guide has developed, experts from across CBRE have increasingly contributed. Workplace, sustainability, and transaction management teams all help to create an inclusive publication which accurately reflects our fully integrated service offering. On a final note, I want to mention our people, who are at the heart of our strategy. CBRE strives to provide a working environment that attracts and develops the best talent, and celebrates the success of every individual. I am proud that the EMEA projects team is one of the most diverse in Global Workplace Solutions, and we are committed to continuing to bring in people from all different backgrounds. Our ability to tap into the best talent, benefit from local expertise and use the latest technology, means that CBRE continues to lead the industry. It also allows us to produce the most comprehensive reference guide for real estate professionals, forming part of a global suite. I want to thank everyone who has contributed to this year’s Fit-Out Cost Guide, and thank you for your continued interest in our work. We hope you enjoy this edition. MATTHEW EASTWOOD Head of EMEA Projects CBRE Global Workplace Solutions, EMEA

CBRE PROJECT MANAGEMENT

WORKPLACE TRENDS Workplace trends have become a hot topic across our industry and are passionately debated on all forms of media. This level of attention is driven by a shared sense of frustration that too many workplaces are failing to satisfy the necessary levels of user experience, including lack of adequate support for ‘wellness’ in the workplace.

TRENDS OBSERVED IN THE LAST 12 MONTHS The most noticeable trend in the past year has been the number of organisations taking steps to address this imbalance by enhancing the user experience and general wellness of employees within the workplace. Apart from the ever-present requirement to reduce real estate and facilities costs, three major trends this year include; the increasing use of flexible office space, greater investment in real estate technology systems and a keener focus on wellness. All three support an overarching requirement to improve user experience, for both employees and visitors.

45%

expect to have significant use of flexible offices by 2021

46%

see innovation and talent as the main reasons for using flexible office space

55%

favour co-working as the most popular flexible space type

EMEA FIT-OUT COST GUIDE

FLEXIBLE OFFICE SPACE A growing number of companies are making use of third-party flexible office space as part of their broader real estate strategies. Whereas this has previously focused on the use of serviced/furnished offices to provide short-term expansion or swing space, there is now a greater interest in and demand for co-working spaces. These tend to be designed with the individual in mind, providing a wide range of space-types and amenities, often with concierge support, enabling users to choose where and how they work. This degree of choice typically results in individuals being happier and therefore more productive. This in turn tends to encourage greater innovation; the life-blood of all successful organisations. The challenge for companies that place teams in co-working environments is that these teams sometimes resist the idea of returning to their old ‘corporate’ workspaces, and retention of key talent can become an issue. The solution may, in due course, be the integration of co-working type concepts within existing corporate real-estate portfolios, thereby avoiding the need to use third-party spaces.

TECHNOLOGY Technology continues to be one of the major catalysts for change – enabling us to work anywhere and at any time. But within real estate teams, the use of data is also undergoing a significant transformation with building-related intelligence, such as energy consumption and space utilisation, being supplemented by technologies that enhance the user experience. This include wayfinding apps, connected sensors, wearables and personal environment control systems, all of which can make things like finding a room or colleague easier and quicker, resulting in greater productivity. As for the foreseeable future, organisations are already looking at next generation technology applications, including connected digital devices, augmented reality and robotics.

56%

see user experience and productivity as key reasons for future technology investments

WELLNESS The wellness agenda is becoming more established and is increasingly considered a central part of the real estate proposition. A growing number of organisations are actively promoting both physical and mental health for employees by providing amenities such as on-site gyms or membership schemes, healthy food options, good access to daylight, ‘sit‑stand’ desks and mental health awareness events. While for some organisations this has been their modus operandi for many years, aspects of their wellness programmes may have been considered ‘perks’ to help attract and retain staff. At times of economic downturn these ‘perks’ may well have been in the frontline for potential cuts. Happily, the situation today is noticeably different, with good physical and mental health increasingly recognised as a necessity rather than a ‘nice to have’. Recent research conducted by the University of Twente and CBRE confirms the relationship between people's working environment and their health, wellbeing and ability to perform1. In some cases productivity improved by 45%.

80%

have or will have a wellness programme

92%

have a preference for wellness capable buildings

74%

expect to provide more collaboration/social space

Source: Healthy Offices, University of Twente and CBRE Statistics Source: CBRE, EMEA Occupier Survey 2018

62%

plan to increase real estate technology investment

47%

expect to hire data scientists within the real estate team CBRE PROJECT MANAGEMENT

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

EMEA FIT-OUT COST GUIDE

TRADITIONAL

AGILE

The traditional layout is characterised by the space having a large number of private offices, the size, location and specification of which are determined by the occupier’s status within the organisation. Executive assistants typically sit directly outside their managers’ offices, while the rest of the workforce is accommodated either in open plan or group rooms. There is 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.

The agile layout is characterised by a wide range of work settings which support ‘activitybased 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.

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

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

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

TRADITIONAL

Traditional Space designation

Area net (sq m)

Work settings

Open plan desks

299

Desks in shared room

Private offices

133

Meeting rooms

146

Informal meeting spaces

Tea point

Support space

Reception

Circulation space

212

Total

1,000

AGILE

Agile Space designation

Area net (sq m)

Work settings

Open plan desks/benches

365

Study pods (open plan)

Meeting rooms

110

Quiet rooms

Informal meeting spaces

Coffee lounge

Recreation room

Support space

Reception/lounge

Circulation space

212

Total

1,000

105

CBRE PROJECT MANAGEMENT

LOW SPECIFICATION ASSUMPTIONS 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

EMEA FIT-OUT COST GUIDE

WORKPOINTS

RECEPTION

COFFEE LOUNGE

MEETING ROOM

COLLABORATION AREA

CBRE PROJECT MANAGEMENT

MEDIUM SPECIFICATION ASSUMPTIONS 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

EMEA FIT-OUT COST GUIDE

WORKPOINTS

RECEPTION

COFFEE LOUNGE

MEETING ROOM

COLLABORATION AREA

CBRE PROJECT MANAGEMENT

HIGH SPECIFICATION ASSUMPTIONS 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 11

EMEA FIT-OUT COST GUIDE

www.klstudio.mk contact@klstudio.mk

WORKPOINTS

RECEPTION

COFFEE LOUNGE

MEETING ROOM

COLLABORATION AREA

CBRE PROJECT MANAGEMENT

EMEA FIT-OUT COST GUIDE

CBRE Barcelona Office

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

These layouts have been priced locally within each market to capture the costing information along with typical procurement and programme data. Prices for each of the 64 EMEA locations identified in this guide are based on the following assumptions: • T he building is located in a central business district • T he space leased is in good CAT A condition and costs are based on a full new CAT B fit-out osts take into account a reconfiguration •C of existing CAT A installations to suit the CAT B design and upgrades where stated in the specification • T he base building and CAT B design are considered to hold no abnormalities • T he 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

• T his is a generic design which does not take into account cultural differences and country specific space planning considerations or local regulations • T he base date for the pricing information in this document is August 2018. ll pricing is in Euros and exchange •A rates are accurate to this date • P ricing is based on the construction costs for the agile layout. The cost variance with the traditional layout is marginal; from data collection as a benchmark 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 •M echanical and electrical services above the ceiling from the riser to suit an open plan regular grid • D ecoration/finishes to the internal face of the perimeter and core walls • Blinds

• Upgrades to landlord’s CAT A provisions • A daption of suspended ceiling, raised floor and M&E to coordinate with final tenant layout • I nstallation of floor boxes, below-floor power and data cabling • T enant improvements including internal partitioning, joinery, floor, wall and ceiling finishes • C orporate branding, statutory, wayfinding and safety signage • I T provisions • S ecurity installations • A udio visual equipment • F urniture

CBRE PROJECT MANAGEMENT

CAT B CONSTRUCTION COSTS (READY RECKONER) COUNTRY

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

EMEA FIT-OUT COST GUIDE

CITY

LOW SPECIFICATION

MEDIUM SPECIFICATION

HIGH SPECIFICATION

(€ / sq m)

CONSTRUCTION INFLATION

Angola

Luanda

1,027

1,244

1,916

8 - 12%

Austria

Vienna

558

737

1,140

3 - 4%

Belgium

Brussels

460

616

876

1 - 2%

Botswana

Gaborone

777

930

1,478

3 - 6%

Bulgaria

Sofia

276

399

550

2 - 4%

Croatia

Zagreb

355

444

694

1 - 3%

Czech Republic

Prague

361

464

725

2 - 3%

Denmark*

Copenhagen

570

757

1,168

0 - 1%

Egypt

Cairo

603

862

1,217

8 - 12%

Estonia

Tallinn

431

572

857

2 - 3%

Ethiopia

Addis Ababa

861

1,048

1,610

8 - 12%

Finland*

Helsinki

714

887

1,440

1 - 3%

France

Paris

733

876

1,367

2 - 3%

Germany*

Berlin

650

898

1,340

1 - 3%

Germany*

Frankfurt

654

904

1,404

1 - 3%

Germany*

Hamburg

674

946

1,439

1 - 3%

Germany*

Munich

684

966

1,491

1 - 3%

Germany*

Stuttgart

660

933

1,419

1 - 3%

Ghana

Accra

813

988

1,523

8 - 10%

Greece

Athens

300

396

627

0 - 2%

Hungary*

Budapest

424

573

898

3 - 6%

Ireland

Dublin

469

605

937

5 - 7%

Israel

Tel Aviv

494

681

1,040

1 - 3%

Italy

Milan

487

638

977

0 - 1%

Italy

Rome

482

633

969

0 - 1%

Ivory Coast

Abidjan

934

1,275

1,942

3 - 6%

Kazakhstan

Almaty

364

480

755

7 - 9%

Kenya

Nairobi

846

1,030

1,582

4 - 6%

Kuwait

Kuwait City

649

851

1,314

2 - 4%

Latvia

Riga

454

534

842

1 - 3%

Lebanon

Beirut

711

931

1,326

5 - 7%

Lithuania

Vilnius

488

578

875

2 - 4%

COUNTRY

CITY

LOW SPECIFICATION

MEDIUM SPECIFICATION

HIGH SPECIFICATION

(€ / sq m)

CONSTRUCTION INFLATION

NOTE

Luxembourg

619

875

1,223

1 - 2%

Morocco

Casablanca

405

506

754

2 - 4%

Netherlands

Amsterdam

496

655

1,002

4 - 6%

Nigeria

Abuja

1,034

1,361

1,936

8 - 12%

Norway*

Oslo

754

1,043

1,593

1 - 3%

Oman

Muscat

607

811

1,162

2 - 4%

Poland

Warsaw

357

456

722

5 - 6%

Portugal

Lisbon

395

529

811

1 - 3%

Qatar

Doha

711

991

1,434

2 - 4%

Romania

Bucharest

346

452

683

5 - 8%

Russia

Moscow

443

602

932

3 - 6%

Saudi Arabia

Riyadh

690

920

1,316

2 - 4%

Serbia*

Belgrade

324

420

649

1 - 3%

Slovakia*

Bratislava

319

528

720

1 - 3%

South Africa

Cape Town

499

678

1,077

4 - 6%

South Africa

Johannesburg

483

659

1,048

4 - 6%

Spain

Barcelona

438

552

874

1 - 3%

Spain

Madrid

447

571

881

1 - 3%

Sweden*

Stockholm

736

1,029

1,381

2 - 4%

Switzerland

Geneva

834

1,063

1,597

0 - 1%

Switzerland

Zurich

838

1,071

1,578

0 - 1%

Turkey

Istanbul

299

441

626

10 - 15%

UAE

Abu Dhabi

701

931

1,334

2 - 4%

UAE

Dubai

711

946

1,414

2 - 4%

Uganda

Kampala

809

985

1,512

3 - 6%

Aberdeen

429

543

811

2 - 4%

Belfast

360

477

736

2 - 4%

Glasgow

429

523

801

2 - 4%

London

538

734

1,144

2 - 4%

Manchester

427

576

818

2 - 4%

Ukraine

Kiev

311

403

629

5 - 8%

Zambia

Lusaka

748

894

1,424

6 - 9%

All prices have been aligned to show CAT B construction costs only. Includes: internal partitions, M&E reconfiguration, doors and ironmongery, wall, floor and ceiling finishes, specialist joinery, fixtures and fittings, structured cabling and comms room fit-out, internal signage, branding, contractor preliminaries and overhead and profit. Excludes: technology (page 17), furniture (page 21), professional fees (page 24), contingencies and taxes.

* CAT B construction works may be delivered by the landlord in these locations and associated costs could be factored in the lease agreement. All costs shown are in sq m, to convert these to sq ft: 1 sq m = 10.764 sq ft.

CBRE PROJECT MANAGEMENT

TECHNOLOGY Technology is an essential component in the fit-out of any workplace. Appropriate workplace technology will provide users with the tools and working environment to flourish.

AV SYSTEMS Commercial environments continue to benefit from the rapidly advancing technology for interoffice collaboration. The workplace now comes equipped with AV communication technology as standard and huddle space has evolved with the advent of simple to use, innovative AV products. In more traditional environments, AVÂ systems are found in meeting rooms and auditorium spaces only. In agile environments AV is used throughout the office to create flexible workspaces that enable users to communicate and collaborate across a range of increasingly

This becomes even more relevant when considering an agile environment, as users integrate better with technology when furnishings, IT and AV are all presented in a cohesive unified platform.

CENTRAL COMMS ROOM All AV and IT equipment located centrally along with BMS and CCTV management

WALL MOUNTED DISPLAY Company information or internal marketing

available platforms. Skype for Business and Webex, for example, are widely available and new project developments should give due consideration to the way users will interface with this type of communication technology. AV equipment is moving away from credenzas within the room to centralised comms rooms for easier servicing and maintenance. The adjacent matrix provides an overview of the core AV infrastructure and installations which users can expect to find in each specification level.

INTERACTIVE AV Linked to desktop PCs and laptops. Conferencing cameras and microphones

Small meeting room Medium meeting room Large meeting room Informal meeting space Alternative workspace

WIRELESS NETWORK Fast wireless network throughout building

LARGE MEETING ROOM Built in ceiling speakers and microphones for video and audio conferencing

EMEA FIT-OUT COST GUIDE

VIDEO DISPLAY WALL Live company information or news feeds

MULTIPLE DISPLAY WALLS Interactive LED screens creating an immersive experience

TRADITIONAL AV SPECIFICATION DESCRIPTION Space type

Low

Medium

AGILE AV SPECIFICATION DESCRIPTION High

Space type

Low

Medium

High

Reception area

Company information or brand specific content displayed on LED signage screen

Multiple LED screens displaying specifically developed content

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

Reception area

Company information or brand specific content displayed on LED signage screen

Multiple LED screens displaying specifically developed content

Video wall or bespoke AV installation providing bespoke, interactive or realtime information specific to client brand

Desk area

No AV

TV screen fed direct from building TV distribution

TV/signage screen fed from client IPTV or signage system

Desk area

No AV

TV screen fed direct from building TV distribution

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

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

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

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

Small meeting rooms

No AV

IP desk phone

IP desk Phone and VC camera

Comms room

Centralised AV equipment

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

AV COST - TRADITIONAL

AV COST - AGILE

Low €50/sq m Medium €100/sq m High €180/sq m

Low €70/sq m Medium €150/sq m High €230/sq m

(Excludes taxes and contingency)

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.

CBRE PROJECT MANAGEMENT

CBRE Barcelona Office

EMEA FIT-OUT COST GUIDE

SECURITY Tenant security systems typically consist of two main elements, electronic access control and CCTV. These systems monitor the point of entry into the tenant’s office demise and to secure areas such as the IT comms room, high value storage or the HR office. In a multi tenanted building the landlord will have already installed security systems managing access and monitoring for the main building entrances and common areas. The security system can operate standalone within the tenant

demise or be interfaced with a compatible landlord system, which provides opportunities to streamline system administration and enhance the visitor management process. Both CCTV and access control systems will typically be Internet Protocol (IP) based, meaning they connect over the structured cabling and network infrastructure. This deployment methodology removes the requirement for multiple types of cabling. This provides opportunities to interface the security systems with any other IP based systems to

create workflows, collate data and cause and effect based outcomes which is the basis for starting to create a ‘Smart Building’. The management interface for security systems will be accessible over the network or consolidated to view alongside other building systems.

SECURITY COST

(Excludes taxes and contingency)

€35 / sq m

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

MARK SIMMONS Consultancy Director

structured cabling system. This will typically be installed within the raised floor and ceiling void to provide connection for fixed IT, AV, security and any other IP 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. Although additional IT infrastructure is required to support these systems, this is offset by savings in other packages. As more systems become IP-based, the reliance on connectivity to the Local Area Network (LAN) means that new switches and firewalls are typically procured 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.

t: +44 (0) 203 126 4986 e: mark.simmons@blacktipconsultancy.com

Wireless access points installed within or beneath the ceiling void will provide users with connectivity to the Internet and the ability to work anywhere within the office. Full Wi-Fi coverage within the office is a key requirement for agile and traditional 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 convergence can offer.

IT COST

(Excludes taxes and contingency)

€60 - €120 / sq m CBRE PROJECT MANAGEMENT

FURNITURE As we move from traditional to agile workspaces, the tools to communicate, design and manage change become more developed. We see a greater focus on wellness. This is not exclusive to either agile or traditional spaces, which can be equally successful depending on the culture, processes, furnishings, technology and activities of a team using the space. Stress, chronic health conditions and working in 'sick buildings' are a large contributory factor for companies to develop wellness programmes. Historically the focus of these has been physical health; meanwhile, stress is a clear driver behind chronic illness. Well-being must come before wellness to get to the root of the problem: the source of employee stress can be the very structure and culture of the workplace. Most companies overall expenditure is significantly larger than their investments in real estate and workplace buildings; however, building and furniture is gaining attention because of the impact it (along with other factors) can have in reducing stress and chronic illness, contributing to the bottom line. Researchers behind the The Healthy Workplace Nudge: How Healthy People, Culture and Buildings Lead to High Performance discovered

EMEA FIT-OUT COST GUIDE

that a human approach is more effective for fostering well-being and employee health. The new view is that leaders who value their employees humanise the workplace. To understand how workplace design contributes to employee well-being, researchers borrowed the concept of the 'nudge' from behavioural economics. Specific cues within the workspace can 'nudge' people into healthier behaviours. These rely on furniture, alongside architecture and space elements, that promote healthier choices for employees.

MOVE Physical environments play a vital role in nudging people to move. Elements like highly visible stairs, height-adjustable tables, and shared storage all promote regular movement. Workspaces that nudge people to move enhance well-being, as humans are designed to move.

CONNECT We need interaction to thrive. Spaces that allow us to connect (formally and informally) signal to employees the value of working together in a variety of ways. Nudges to increase connection and engagement include: onveniently located small work places •C that prompt face-to-face interaction without disrupting other employees • S ocial and interaction spaces that nudge workers to slow down, seek nourishment, and chat with others epartment/team area design cues •D that define an area and increase a sense of group identity – this can foster social cohesion and reduce stress Harnessing the power of the Workplace Nudge to help people move, focus, and connect makes healthier choices easier for all. In turn, organisations – and their bottom lines – thrive.

FOCUS While we need to work together to achieve great things, we also need time to ourselves. Creating intelligent workspaces nudges people to focus by making it easy for them to: ind the best place to do their •F work without distractions ind their way around with a minimum •F of main path intersections iew what’s outside to give their •V eyes and minds a break • L ocate respite areas for quiet reflection and relaxation

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

The cost of furniture will vary depending on layout, specification and location. The adjacent tables can be used to generate a furniture budget by selecting the appropriate furniture base cost for the desired layout and specification. The corresponding percentage for installation, logistics and import tax should be added to this base cost for the locations in question.

FURNITURE BENCHMARK COSTS Low Specification (€ / sq m)

Medium Specification (€ / sq m)

High Specification (€ / sq m)

Traditional

115

165

Agile

140

165

210

COUNTRY

INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

COUNTRY

INSTALL (%)

LOGISTICS (%)

IMPORT TAX (%)

TIME (WEEKS)

Angola

varies

Lithuania

Austria

Luxembourg

Belgium

Morocco

15%

25%

Botswana

30%

20%

Netherlands

Bulgaria

Nigeria

varies

Croatia

Norway

12%

Czech Republic

Oman

20%

Denmark

Poland

Egypt

24%

60%

Portugal

Estonia

Qatar

20%

Ethiopia

30%

Romania

10%

Finland

12%

Russia

14%

25%

France

Saudi Arabia

20%

Germany

Serbia

14%

20%

Ghana

24%

20%

Slovakia

Greece

16%

South Africa

21%

20%

Hungary

Spain

Ireland

Sweden

10%

Israel

20%

12%

Switzerland

Italy

Turkey

12%

Ivory Coast

24%

20%

UAE

20%

Kazakhstan

24%

15%

Uganda

30%

25%

Kenya

30%

25%

Kuwait

20%

Ukraine

12%

Latvia

Zambia

30%

25%

Lebanon

20%

50%

CBRE PROJECT MANAGEMENT

EMEA FIT-OUT COST GUIDE

CBRE Madrid Office

PROFESSIONAL FEES An estimate of professional fees can be calculated based on a percentage of capital costs for appointments. On a typical project of this size and complexity the expected professional fees include architectural design, M&E services design, project management, cost management and others (including acoustician, building control and planning). These services will provide design, consultancy and management required to deliver a project from inception through to project closeout. The adjacent fees are typical for a CATÂ B fit-out project of 1,000 sq m. Please note that these fees can vary depending on project specifics, complexity, procurement route, size and scope of appointment. The fees specified in this table exclude brokerage fees, client insurances, legalÂ fees and transaction management.

COUNTRY

FEES (% OF PROJECT COSTS)

COUNTRY

FEES (% OF PROJECT COSTS)

Angola

22%

Lithuania

13%

Austria

18%

Luxembourg

22%

Belgium

15%

Morocco

14%

Botswana

19%

Netherlands

17%

Bulgaria

15%

Nigeria

22%

Croatia

18%

Norway

19%

Czech Republic

18%

Oman

18%

Denmark

24%

Poland

14%

Egypt

15%

Portugal

19%

Estonia

13%

Qatar

19%

Ethiopia

17%

Romania

17%

Finland

16%

Russia

12%

France

18%

Saudi Arabia

17%

Germany

23%

Serbia

18%

Ghana

20%

Slovakia

15%

Greece

18%

South Africa

18%

Hungary

13%

Spain

18%

Ireland

13%

Sweden

16%

Israel

14%

Switzerland

24%

Italy

14%

Turkey

16%

Ivory Coast

21%

UAE

19%

Kazakhstan

17%

Uganda

20%

Kenya

20%

15%

Kuwait

18%

Ukraine

16%

Latvia

13%

Zambia

19%

Lebanon

17%

A matrix to assist clients to build their own budget using the cost data provided in this guide can be found on page 42. CBRE PROJECT MANAGEMENT

BUSINESS TRANSITION & MOVE MANAGEMENT Move management and physical relocation is an integral part of a CAT B project and takes place either during or upon completion of the fit-out works. Moves have the potential to disrupt business continuity, which can impact productivity.

Careful organisation and sequence planning is essential to minimise disruption. This usually involves a move consultant working with a range of client department representatives to identify the current set-up to plan for and accommodate activities critical for business continuity and accurate movement of employees, furniture and equipment. The move consultant is responsible for all aspects of change management and implements a comprehensive communications plan at all levels to ensure everyone affected is kept up to date with proposals and has input into the project, ensuring that where possible 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 teams sharing best practice across regions, including banking/finance, technology, retail, pharmaceutical, industrial and legal. Using the latest technology, we maintain up-to-date client space allocation data at all times, and our workplace specialists work with clients on accommodation and workplace strategies 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. Our accreditation to BS EN ISO 14001 provides an environmental management system that allows us to manage the entire clearance process on their behalf. We seek to re-use, re-purpose, donate or environmentally dispose of surplus furniture and effects, taking full legal responsibility and promoting client corporate social responsibility.

SAME FLOOR (€ PER PERSON)

BETWEEN FLOORS* (€ PER PERSON)

BETWEEN BUILDINGS** (€ PER PERSON)

Crate only (personal effects)

€ 25

€ 29

€ 35

Crate plus desk move

€ 41

€ 50

€ 82

Crate plus desk and desktop IT move

€ 55

€ 72

€ 143

TYPE OF MOVE

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

EMEA FIT-OUT COST GUIDE

CBRE Wuhan Office

CBRE PROJECT MANAGEMENT

REINSTATEMENT 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 term. A tenant’s liability is defined by the terms of the individual lease and the nature of local property markets. In some countries where the landlord provides the fit-out, they will take on most obligations to repair it, reflecting the cost in the rent. In others, the tenant is responsible for reversing any alterations that they have 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 these figures will not reflect every situation. Here, the likely nature of the lease reinstatement obligations has been assessed 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.

EMEA FIT-OUT COST GUIDE

COUNTRY

CITY

RATE (€ / SQ M)

TYPICAL REINSTATEMENT COST (€)

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

Egypt

Cairo

€9

€ 9,000

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 City

€ 190

€ 190,000

Full removal of fit-out

Luxembourg

€ 190

€ 190,000

Full removal of fit-out and repair

Morocco

Casablanca

€ 55

€ 55,000

Full removal of fit-out

Full removal of fit-out Re-decoration and clearing of space

RATE (€ / SQ M)

TYPICAL REINSTATEMENT COST (€)

LEASE LIABILITY ASSUMPTION

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

Aberdeen

€ 175

€ 175,000

Full removal of fit-out and repair

Belfast

€ 170

€ 170,000

Full removal of fit-out and repair

Glasgow

€ 180

€ 180,000

Full removal of fit-out and repair

London

€ 230

€ 230,000

Full removal of fit-out and repair

Manchester

€ 180

€ 180,000

Full removal of fit-out and repair

Zambia

Lusaka

€ 135

€ 135,000

Full removal of fit-out

COUNTRY

CITY

Netherlands

KEY 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 2018. 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.

CBRE PROJECT MANAGEMENT

PROCUREMENT & PROGRAMME Understanding how a project will be procured and how long it will take by identifying the key milestones is critical to developing an accurate business case. There can be significant variances in lead times and task durations from one country to the next. This can have a material impact on the viability of a business case and ultimately the decision on whether to proceed with a project.

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 allow for these in the programme. With the Brexit deadlines fast approaching, yet its impact still unclear, extra consideration may need to be given to projects in the UK, where products are often sourced from across EMEA and new restrictions may have a tangible impact on lead times and budgets.

PROCUREMENT ROUTES

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

Depending on the location in question, 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 of a project’s procurement or phasing strategy to maintain and achieve the desired programme, whilst minimising any impact on a client’s core business.

It is always recommended to obtain professional programme advice as early as possible in order to give a client the maximum choice 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.

DESIGN AND BUILD • T ender documents outlining employers requirements, prepared by client/ consultant team usually in the form of a brief, i.e. performance criteria • S ingle contractor appointed and contributes specialist knowledge into design process ontractor has full design responsibility •C esign and construction can •D occur concurrently

EMEA FIT-OUT COST GUIDE

CBRE's programme and project programme 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 the typical timeframes for completing the fit-out using the most common procurement route in each location.

TRADITIONAL onsultant team appointed by client •C and prepares fully detailed drawings, specification and pricing documents lient retains the design risk •C ontractor’s Design Portion •C can be incorporated • T endered on construction stage design information esign and construction are sequential •D

CONSTRUCTION MANAGEMENT lient procures design as per •C the traditional route onstruction manager appointed to •C co-ordinate trade contractors • T rade contracts let on a package by package basis lient generally retains design •C and construction risk esign and construction can •D occur concurrently

TYPICAL PROCUREMENT ROUTE AND PROGRAMME COUNTRY

PROCUREMENT ROUTE 0

Ireland UK

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

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

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

Denmark Finland Norway Sweden

Construction Management Traditional Design & Build Design & Build

Greece Israel Italy Portugal Spain Turkey

Traditional Traditional Traditional Traditional Design & Build Traditional

Kuwait Lebanon Oman Qatar Saudi Arabia UAE

Traditional Traditional Traditional Traditional Design & Build Traditional

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

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

WEEKS

UK & IRELAND

Traditional Traditional/Design & Build

Austria Belgium France Germany Luxembourg Netherlands Switzerland

PROGRAMME 45

Inception Design

WESTERN EUROPE

Tender Construction Handover

CENTRAL & EASTERN EUROPE

NORDICS

SOUTHERN EUROPE & MEDITERRANEAN

MIDDLE EAST

AFRICA

WEEKS

CAPITAL PLANNING Real estate is a significant cost for any business. If running costs and real estate assets are managed effectively, then real estate departments can make a positive impact towards achieving overall organisational objectives.

Real estate decisions are often based on triggers, which may include lease dates, user requirements, maintenance, regulatory requirements, departmental adjacencies and headcount changes. Often projects are initiated to solve short-term objectives, without consideration for how individual investment may impact on the organisationâ&#x20AC;&#x2122;s wider portfolio. Taking a long-term view to optimise and improve real estate assets can save organisations significant costs and ensure buildings are serving them in the best way possible, now and in the future. Capital planning is the holistic process associated with managing an organisationâ&#x20AC;&#x2122;s capital investment in their real estate portfolio. It starts long before the start of any single project and is regularly reviewed and revised. By following this process, organisations can target the optimal condition of their assets and create an action plan which pinpoints where investment is required, estimate costs and timeframes. The main output is an optimised pipeline of projects which are prioritised according to company objectives and strategies.

EMEA FIT-OUT COST GUIDE

Effective capital planning can provide a competitive advantage by enabling an organisation to gain a better understanding of its property portfolio, overarching strategy, and associated P&L impact. This business information enables better decision making, resulting in improved outcomes. The capital planning process, illustrated opposite, allows an organisation to strategically align real estate initiatives with company goals and contribute to overall success. By aligning on the overarching portfolio strategy for a planned pipeline of projects, departments can better share information, and collaboration between real estate teams and the wider organisation is significantly improved. CBRE provides capital planning expertise to clients across the globe. Our highly experienced team combines surveying experience and strategic understanding to develop a pipeline of projects which is aligned with client needs. As part of this process, CBRE can provide cashflow and depreciation forecasts to create rationalised capital plans that enhance forecasting accuracy and spend efficiency.

CBRE Milan Office

CAPITAL PLANNING PROCESS The capital planning process can be split into nine stages.

Maintain Relationships & Repeat

Continue to maintain the relationships between the real estate department and business groups. The plan should be fluid and have the ability to be amended as business needs change, and then periodically updated in a rolling capital plan.

Results

Real estate performance can be measured in many ways. Success may vary depending upon short or long-term goals, which may include improved employee experience, reduced cost per head, and reduced P&L impact.

For each investment opportunity, the scope, programme and key requirements are established. Where these are unknown or unclear, assumptions are made for the most likely scenario.

Project Pipeline

This consolidated list of investments forms a pipeline of projects, and is reviewed and signed-off by senior leadership. If amendments are required to projects, then the previous stages can be repeated as necessary.

Budgets for each potential investment are estimated. This is usually completed using historic client information, benchmarks or by consulting a cost expert.

Analysis & Review

An aggregated view of potential real estate initiatives showing scope, budget, priority, programme, cashflow and depreciation impact can be reviewed, revised and optimised.

Communication

Good communication between real estate department and internal business groups is key. Strong relationships provide greater visibility and enable quick decision making.

Strategic Planning

Bottom up and top down discussion should inform capital plans. Bottom up includes internal alignment of departmental and end user requirements. Top down looks to understand how the current portfolio is utilised, and how optimal this is.

Scope, Programme & Priority

Budgets

Cashflow Forecast & Depreciation

Using the estimated budget and programme assumptions, the spending profile of each investment can be modelled and the corresponding P&L impact can beÂ assessed.

CBRE PROJECT MANAGEMENT

CONSTRUCTION SERVICES While this guide deals with traditional project and cost management services, CBRE can also provide clients with many 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 can also act as the principal contractor under CDM regulations. We 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 thirdparty 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.

EMEA FIT-OUT COST GUIDE

SUMMARY BENEFITS OF CBRE DELIVERING CONSTRUCTION ACTIVITIES: rings a 'One Team' approach •B with a partnering ethos • S implifies vendor set-up and invoicing process • P rovides single point of project accountability • I mproves speed to market educes project programme duration •R nsures early agreement of commercial terms •E P • rovides immediate senior management resource commitment nsures prompt engagement of specialist •E consultants and sub-contractors for early completion of key elements of detailed design educes tendering and site •R mobilisation timeframes nhances competitive supply •E chain price transparency • I mproves buying power and ability to influence lead-in time frames • P rovides continuity when managing client direct suppliers and specialists from preconstruction into delivery While CBRE offers a full range of services, whatever delivery and procurement option is selected needs to be appropriate to meet project parameters and to deliver against client objectives.

TAX DEPRECIATION 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 that 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 from country to 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. Therefore, a review of all capital expenditure incurred on projects should be undertaken to ensure all assets are correctly allocated to ensure you are claiming 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.

The table below shows the potential tax savings across various EMEA countries, based on a total expenditure of €2,500,000 for a CAT B fit-out. ESTIMATED QUALIFYING 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%

64,000

212,000

104,000

109,000

489,000

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%

94,000

155,000

29,000

107,000

385,000

Switzerland

95%

49,000

198,000

73,000

109,000

429,000

UAE*

80%

62,000

181,000

68,000

90,000

401,000

74%

62,000

133,000

82,000

75,000

352,000

Ukraine

80%

52,000

207,000

34,000

68,000

361,000

COUNTRY

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

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

SUSTAINABILITY Sustainability is a fastchanging and complex issue for businesses around the world. New regulation, increasing operational costs, and greater stakeholder scrutiny create challenges and opportunities that cannot be ignored. On average, real estate operation represents approximately 40% of carbon-intensive activities across EMEA1. On top of this, people spend around 90% of their time inside buildings2. So the health implications of the spaces we create and occupy are significant, alongside the environmental implications. Enhancing sustainability can also have measurable financial benefits for occupiers; a well-designed, resource-efficient fit-out has been proven to reduce operating costs. On average, 90% of business operating costs are attributed to employees, with a further 1% attributed to ongoing utilities costs3, so creating healthy and efficient environments can have a huge impact on bottom line. https://ec.europa.eu/energy/en/topics/energy-efficiency/buildings https://indoor.lbl.gov/sites/all/files/lbnl-47713.pdf 3 https://www.ukgbc.org/ 1 2

EMEA FIT-OUT COST GUIDE

CBRE’S HEALTH, PRODUCTIVITY, AND CREATIVITY RESEARCH

PORTFOLIO SUSTAINABILITY STRATEGIES

In collaboration with organisations and universities, CBRE has explored the relationship between healthy buildings and employee performance in two key studies.

CBRE can help occupiers implement marketleading sustainable fit-out strategies across their portfolios, to support existing corporate responsibility commitments and further deliver cost benefits. This often involves defining criteria for site selection, minimum design requirements and operational requirements to ensure continued performance, and may involve sustainable certification targets.

In 2017 we released CBRE Healthy Offices, 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. This was shortly followed by CBRE Lab, published in 2018 in collaboration with the Technical University of Madrid, and the Keio University. Both studies demonstrate a broad range of tangible benefits to employee performance from health-enabled office design. Search CBRE Healthy Offices and CBRE Lab to find out more.

CREATING RESOURCE-EFFICIENT, PRODUCTIVE, HEALTHY WORKING ENVIRONMENTS Our experts help occupiers achieve a more sustainable fit-out, from establishing overarching portfolio strategies through to technical design and third‑party sustainability certification.

TECHNICAL DESIGN SUPPORT We recommend that design decisions concerning sustainability are addressed during the project brief, to improve cost and risk management, avoid abortive work and ultimately enhance the project’s success and sustainability performance. CBRE supports design teams by providing technical sustainability design advice tailored to specific project needs, indicating costs and priorities associated with a variety of sustainable fit-out criteria: nergy efficiency •E S • upply chain impact • L ighting quality arbon footprint •C ater efficiency •W A • ctive lifestyle support ccupant comfort •O B • iophilic design ealth impact of products •H

CBRE Madrid Office

CERTIFICATION Now more than ever occupiers are demanding minimum sustainability standards and are increasingly opting for thirdparty certification. This provides a clear, holistic approach and acts asÂ independent verification of achievements against a recognised standard.

Scheme Operated by Countries available (origin) Levels of achievement

BREEAM

LEED

HQE

DGNB

SKA

WELL

FITWEL

BRE

USGBC

CERWAY

DGNB

RICS

International WELL Building Institute

US HSS

International (UK)

International (US)

International (France)

International (Germany)

UK (UK)

International (US)

Pass, Good, Very Good, Excellent, Outstanding

Silver, Gold, Platinum

Pass, Good, Very Good, Excellent, Exceptional

Bronze, Silver, Gold, Platinum

Bronze, Silver, Gold

Silver, Gold, Platinum

1 Star, 2 Star, 3 Star

CBRE PROJECT MANAGEMENT

REGIONAL MARKET OUTLOOK ECONOMIC OUTLOOK The world economy expanded at its fastest rate for six years in 2017, driven by a coordinated acceleration in almost all developed economies and continued strong growth in emerging Asia. Despite a mild slowdown in Europe, 2018 is expected to see more of the same, but as we approach the end of a long expansionary cycle, a period of weaker growth is in prospect. This is largely driven by recent, and expected further, tightening in US monetary policy starting to impact the US economy and producing a mild cyclical downturn starting in mid-2019. This has knock-on effects through trade and finance to other parts of the world, which see an upward drift in long-term interest rates and a slowdown in growth in late 2019 and 2020. While we do not anticipate a major financial crash, this period still represents a meaningful slowdown - even assuming some of the accompanying downside risks such as a trade war do not materialise. A feature of this outlook is that we do not expect interest rates to rise back to the levels that were prevalent before the financial crisis, but rather a cyclical rise associated with rising inflationary pressure particularly in the USA. Once economies begin to slow, we expect monetary authorities to have the scope to lower interest rates to something closer to the levels that have prevailed over the past five years. This lays the ground for economies to start building recovery momentum by 2021. So all in all, a relatively mild end to this cycle but with various risks that could accentuate the short-term slowdown.

EMEA FIT-OUT COST GUIDE

Europe itself presents a mixed picture, with some substantial differences between the major economies both in terms of the current cyclical position and medium-term outlook. The economy of the EU-28 as a whole expanded by 0.4% in the second quarter of this year, a slight slowdown from the growth rates recorded through 2017. Nevertheless, the annual rate of growth, 2.2%, is still indicative of a reasonable rate of expansion. Among the larger economies, Spain, Sweden and the Netherlands are seeing growth above this level, as are several other CEE markets, notably Poland. At the other end of the spectrum, Italy and the UK are seeing weaker, and in the former case deteriorating, growth. This period of growth has so far been achieved with only moderate increases in price inflation. Across the EU, inflation has been ticking up slightly in the early part of 2018, but still only to 2.2% as of July, and fuelled mainly by services and energy. Price inflation is higher in the UK, France and Spain, and lower in the Netherlands, Italy and Ireland. While there are some short-term indications of rising price pressures, overall we expect inflation to remain broadly subdued, and associated with 10year bond yields settling at around 3% in the very long run, rather than the 5% level that was more typical before the financial crisis. Looking at future growth prospects, there are big differences within the Continental European outlook with Spain and Ireland forecast to grow at an average annual rate of around 2.2% while the rest of the Eurozone at a more sedate

1.4%. Central Europe and Sweden are also expected to outperform. The UK by contrast, having outgrown much of the rest of Europe in early stages of the recovery, has entered a period of slower growth partly associated with uncertainty arising from the EU referendum. It has seen sub-2% growth for each of the past two years, with further deterioration in the growth rate expected over the short term. While there is considerable uncertainty surrounding the outcome of Brexit negotiations, we expect corporate and consumer confidence to improve once the future is clearer, leading to a reasonably strong cyclical recovery. Outside Europe, many markets in sub-Saharan Africa will continue to see strong economic and population growth associated with diversification away from primary industries andÂ commodities. Inflation remains high relative to European levels, but generally expected to trend downwards. One risk concerns the possibility of debtservicing problems in the event of a sharp rise in US interest rates, given the accumulation of dollar-denominated debt in some countries. In the Middle East a period of more stable oil prices, and associated growth in public and investment spending, should benefit some economies.

OFFICE MARKET OVERVIEW RENTS The CBRE EMEA office rent index rose by 3.5% in the year to Q2 2018. Indeed, the index has had sustained growth of over 3.5% per annum over the past four quarters compared with 2.5-3% per annum over the previous two years. This indicates that demand stemming from late-cycle economic growth continues to push rents upwards. Again, market conditions vary widely. Several have seen rental growth of over 10% over the past year, including Oslo, Stockholm, Glasgow, Bristol and St Petersburg. Berlin is also in this group, and indeed German markets generally are performing well with Munich and Hamburg also seeing positive real growth. The major markets in Spain and Italy have seen growth of 5%+ over the past year, with Dublin and Paris not far behind. At the other end of the spectrum Dubai and Abu Dhabi have posted steep falls, with Vienna and the City of London seeing more moderate declines. CEE is something of a mixed picture. Several markets, including Warsaw and Moscow, are static due to high levels of vacancy counteracting strong demand growth; while others such as Prague and Budapest are starting to see upward pressure.

OFFICE MARKET DYNAMICS The demand side of the market remains strong in many cities, with leasing activity maintaining recent levels and even accelerating in some places. In aggregate terms, take-up across the main EMEA markets reached around 3.8 million sq m in the second quarter, 10% up on the same quarter in 2017. Taking the first half of the year as a whole, leasing levels are over 8% up on the first half of last year. The figures are somewhat stronger than this in CEE, mainly due to robust take-up in Moscow (up 30% vs Q2 2017) and Warsaw (14%) with Bucharest and Belgrade also performing well. Most of the larger Western European markets are also up, including London (up 3.8% vs Q2 2017), Paris (27%), Munich (53%), Milan (14%) and Vienna (18%).

In some of these markets high aggregate vacancy reflects the co-existence of high-supply, often poor quality, decentralised districts with much more supply-constrained central areas. As a result, declining aggregate vacancy in combination with still restrained development levels, is accentuating the level of competition faced by occupiers looking to acquire space from existing stock. In some places the shortage of large units is sufficiently acute that occupiers with substantial requirements are having to either consider slightly decentralised locations or initiate pre-lets.

Supply levels across the region have generally continued to fall, now standing at around 8%. Cities in which vacancy rates have tightened by over a percentage point in the past year include Warsaw, Madrid, Frankfurt, Amsterdam, Berlin and St Petersburg. Cities with mid-year vacancy rates below 5% include Berlin, Munich, London and Vienna while a number of cities have vacancy rates approaching or above 10% including Frankfurt, Madrid, Warsaw and Milan.

CBRE PROJECT MANAGEMENT

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.

1.80 1.60 1.40 1.20

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 organisationâ&#x20AC;&#x2122;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.

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 2018 exchange rate. Please contact the CBRE GWS Cost Consultancy team if local currency costs are required as there are exchange rate fluctuations anticipated for 2018/2019.

EMEA FIT-OUT COST GUIDE

1.00 0.80 0.60 0.40 0.20 0

FIT-OUT COST INDEX | GLOBAL From large corporations to start-ups, our clients rely on benchmarking as a key tool to assist them in their decision-making process. 1.40

CBRE is pleased to introduce the inaugural CBRE Global Fit-Out Index which aims to highlight the relativity of key markets around the world.

1.20

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.

0.60

1.00 0.80

0.40 0.20 0

This industry leading benchmark data, paired with CBREâ&#x20AC;&#x2122;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 clientsâ&#x20AC;&#x2122; objectives.

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.

CBRE PROJECT MANAGEMENT

NEW FOR 2018 | ONLINE CALCULATOR We are excited for the launch of our new Fit-Out Online Calculator, offering unrivalled insights into project costs across the region, and allowing you to produce, compare and download project information for easy benchmarking. KEY FEATURES: urniture, IT, professional fees, AV and other costs all included •F bility to add and compare past projects •A A • bility to compare traditional and agile costs bility to duplicate projects for easy benchmarking •A A • ll 64 key EMEA locations in the Fit-Out Cost Guide included • I ndicative timeframes and schedules incorporated Visit www.cbre.com/fit-out-emea to access the tool. Simply log in with your LinkedIn account and get started!

EMEA FIT-OUT COST GUIDE

BUILD YOUR BUDGET MATRIX COUNTRY

FURNITURE TRADITIONAL € / SQ M

CAT B AGILE € / SQ M

CITY

Determine spec

Select location

FURNITURE AGILE € / SQ M

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

SECURITY € / SQ M Benchmark

(inc import tax)

AV TRADITIONAL € / SQ M

AV AGILE € / SQ M

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

LOW

MED

HIGH

LOW

MED

HIGH

LOW

MED

HIGH

LOW, MED & HIGH

LOW

MED

HIGH

LOW

MED

HIGH

FEES

IT € / SQ M

CONTINGENCY

Apply %

(inc import tax)

Select spec

Apply %

LOW

HIGH

TRADITIONAL FIT-OUT TOTAL € / SQ M

AGILE FIT-OUT TOTAL C / SQ M

Range LOW

HIGH

LOW

HIGH

Angola

Luanda

1,027

1,244

1,916

90+

115+

165+

140+

165+

210+

35+

50+

100+

180+

70+

150+

230+

22%

60+

120+

10%

1752+

3348+

1774+

3340+

Austria

Vienna

558

737

1,140

127

182

154

182

231

100

180

150

230

18%

120

10%

1,068

2,204

1,127

2,255

Belgium

Brussels

460

616

876

127

182

154

182

231

100

180

150

230

15%

120

10%

912

1,801

976

1,868

Botswana

Gaborone

777

930

1,478

143

183

262

223

262

334

120

216

180

276

19%

144

10%

1,471

2,875

1,553

2,946

Bulgaria

Soﬁa

276

399

550

103

131

188

160

188

239

100

180

150

230

15%

120

10%

671

1,374

750

1,466

Croatia

Zagreb

355

444

694

104

132

190

161

190

242

100

180

150

230

18%

120

10%

796

1,606

872

1,690

Czech Republic

Prague

361

464

725

100

128

183

155

183

233

100

180

150

230

18%

120

10%

799

1,639

873

1,719

Denmark

Copenhagen

570

757

1,168

104

133

191

162

191

244

100

180

150

230

24%

120

10%

1,142

2,363

1,208

2,419

Egypt

Cairo

603

862

1,217

173

221

317

269

317

403

160

288

112

240

368

15%

192

10%

1,300

2,668

1,422

2,797

Estonia

Tallinn

431

572

857

104

132

190

161

190

242

100

180

150

230

13%

120

10%

864

1,756

932

1,826

Ethiopia

Addis Ababa

861

1,048

1,610

152

194

279

237

279

355

130

234

195

299

17%

156

10%

1,590

3,072

1,674

3,144

Finland

Helsinki

714

887

1,440

108

138

198

168

198

252

100

180

150

230

16%

120

10%

1,271

2,593

1,325

2,629

France

Paris

733

876

1,367

127

182

154

182

231

100

180

150

230

18%

120

10%

1,307

2,514

1,354

2,550

Germany

Berlin

650

898

1,340

124

178

151

178

227

100

180

150

230

23%

120

10%

1,239

2,572

1,292

2,610

Germany

Frankfurt

654

904

1,404

124

178

151

178

227

100

180

150

230

23%

120

10%

1,243

2,664

1,297

2,697

Germany

Hamburg

674

946

1,439

124

178

151

178

227

100

180

150

230

23%

120

10%

1,272

2,713

1,324

2,744

Germany

Munich

684

966

1,491

124

178

151

178

227

100

180

150

230

23%

120

10%

1,286

2,788

1,338

2,815

Germany

Stuttgart

660

933

1,419

124

178

151

178

227

100

180

150

230

23%

120

10%

1,253

2,684

1,306

2,717

Ghana

Accra

813

988

1,523

138

176

252

214

252

321

120

216

180

276

20%

144

10%

1,526

2,948

1,602

3,012

Greece

Athens

300

396

627

112

143

205

174

205

260

100

180

150

230

18%

120

10%

730

1,534

816

1,628

Hungary

Budapest

424

573

898

104

132

190

161

190

242

100

180

150

230

13%

120

10%

856

1,811

924

1,878

Ireland

Dublin

469

605

937

101

129

185

157

185

235

100

180

150

230

13%

120

10%

910

1,855

974

1,919

Israel

Tel Aviv

494

681

1,040

126

161

231

196

231

294

112

202

168

258

14%

134

10%

1,004

2,113

1,087

2,193

Italy

Milan

487

638

977

103

131

188

160

188

239

100

180

150

230

14%

120

10%

945

1,927

1,009

1,990

Italy

Rome

482

633

969

103

131

188

160

188

239

100

180

150

230

14%

120

10%

937

1,916

1,002

1,979

Ivory Coast

Abidjan

934

1,275

1,942

138

176

252

214

252

321

120

216

180

276

21%

144

10%

1,707

3,559

1,775

3,595

Kazakhstan

Almaty

364

480

755

131

168

241

204

241

307

115

207

173

265

17%

138

10%

863

1,803

962

1,910

Kenya

Nairobi

846

1,030

1,582

148

189

271

230

271

344

125

225

188

288

20%

150

10%

1,594

3,075

1,676

3,145

Kuwait

Kuwait City

649

851

1,314

121

154

221

188

221

281

105

189

158

242

18%

126

10%

1,228

2,514

1,298

2,571

Latvia

Riga

454

534

842

104

132

190

161

190

242

100

180

150

230

13%

120

10%

895

1,737

961

1,808

Lebanon

Beirut

711

931

1,326

161

206

295

251

295

376

150

270

105

225

345

17%

180

10%

1,433

2,790

1,539

2,900

Lithuania

Vilnius

488

578

875

104

132

190

161

190

242

100

180

150

230

13%

120

10%

938

1,780

1,003

1,849

CBRE PROJECT MANAGEMENT

COUNTRY

FURNITURE TRADITIONAL € / SQ M

CAT B AGILE € / SQ M

CITY

Determine spec

Select location

FURNITURE AGILE € / SQ M

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

SECURITY € / SQ M Benchmark

(inc import tax)

AV TRADITIONAL € / SQ M

AV AGILE € / SQ M

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

LOW

MED

HIGH

LOW

MED

HIGH

LOW

MED

HIGH

LOW, MED & HIGH

LOW

MED

HIGH

LOW

MED

HIGH

FEES

IT € / SQ M

CONTINGENCY

Apply %

(inc import tax)

Select spec

Apply %

LOW

HIGH

TRADITIONAL FIT-OUT TOTAL € / SQ M

AGILE FIT-OUT TOTAL C / SQ M

Range LOW

HIGH

LOW

HIGH

Luxembourg

619

875

1,223

127

182

154

182

231

100

180

150

230

22%

120

10%

1,187

2,392

1,244

2,439

Morocco

Casablanca

405

506

754

140

178

256

217

256

326

125

225

188

288

14%

150

10%

925

1,818

1,027

1,934

Netherlands

Amsterdam

496

655

1,002

127

182

154

182

231

100

180

150

230

17%

120

10%

975

2,000

1,038

2,060

Nigeria

Abuja

1,034

1,361

1,936

90+

115+

165+

140+

165+

210+

35+

50+

100+

180+

70+

150+

230+

22%

60+

120+

10%

1762+

3377+

1783+

3367+

Norway

Oslo

754

1,043

1,593

108

138

198

168

198

252

100

180

150

230

19%

120

10%

1,357

2,867

1,410

2,894

Oman

Muscat

607

811

1,162

120

153

219

186

219

279

105

189

158

242

18%

126

10%

1,170

2,304

1,242

2,371

Poland

Warsaw

357

456

722

104

132

190

161

190

242

100

180

150

230

14%

120

10%

774

1,593

848

1,673

Portugal

Lisbon

395

529

811

127

182

154

182

231

100

180

150

230

19%

120

10%

851

1,768

922

1,843

Qatar

Doha

711

991

1,434

119

152

218

185

218

277

105

189

158

242

19%

126

10%

1,321

2,695

1,386

2,742

Romania

Bucharest

346

452

683

105

135

193

164

193

246

100

180

150

230

17%

120

10%

780

1,582

858

1,668

Russia

Moscow

443

602

932

131

167

239

203

239

305

125

225

188

288

12%

150

10%

949

1,999

1,040

2,096

Saudi Arabia

Riyadh

690

920

1,316

133

170

244

207

244

311

120

216

180

276

17%

144

10%

1,316

2,588

1,396

2,662

Serbia

Belgrade

324

420

649

128

163

234

199

234

298

120

216

180

276

18%

144

10%

820

1,685

921

1,801

Slovakia

Bratislava

319

528

720

104

132

190

161

190

242

100

180

150

230

15%

120

10%

729

1,602

806

1,683

South Africa

Cape Town

499

678

1,077

134

171

246

209

246

313

120

216

180

276

18%

144

10%

1,067

2,284

1,161

2,375

South Africa

Johannesburg

483

659

1,048

134

171

246

209

246

313

120

216

180

276

18%

144

10%

1,046

2,244

1,140

2,337

Spain

Barcelona

438

552

874

103

131

188

160

188

239

100

180

150

230

18%

120

10%

908

1,849

978

1,921

Spain

Madrid

447

571

881

103

131

188

160

188

239

100

180

150

230

18%

120

10%

921

1,859

990

1,930

Sweden

Stockholm

736

1,029

1,381

106

136

195

165

195

248

100

180

150

230

16%

120

10%

1,299

2,510

1,350

2,549

Switzerland

Geneva

834

1,063

1,597

104

133

191

162

191

244

100

180

150

230

24%

120

10%

1,521

2,979

1,568

3,004

Switzerland

Zurich

838

1,071

1,578

104

133

191

162

191

244

100

180

150

230

24%

120

10%

1,527

2,953

1,574

2,979

Turkey

Istanbul

299

441

626

114

146

210

178

210

267

107

193

161

246

16%

128

10%

733

1,543

822

1,642

UAE

Abu Dhabi

701

931

1,334

119

152

218

185

218

277

105

189

158

242

19%

126

10%

1,307

2,557

1,373

2,611

UAE

Dubai

711

946

1,414

119

152

218

185

218

277

105

189

158

242

19%

126

10%

1,321

2,667

1,386

2,716

Uganda

Kampala

809

985

1,512

148

189

271

230

271

344

125

225

188

288

20%

150

10%

1,542

2,978

1,627

3,053

Aberdeen

429

543

811

101

129

185

157

185

235

100

180

150

230

15%

120

10%

872

1,717

939

1,790

Belfast

360

477

736

101

129

185

157

185

235

100

180

150

230

15%

120

10%

780

1,618

852

1,696

Glasgow

429

523

801

101

129

185

157

185

235

100

180

150

230

15%

120

10%

872

1,704

939

1,777

London

538

734

1,144

101

129

185

157

185

235

100

180

150

230

15%

120

10%

1,018

2,161

1,078

2,212

Manchester

427

576

818

101

129

185

157

185

235

100

180

150

230

15%

120

10%

869

1,726

937

1,799

Ukraine

Kiev

311

403

629

108

138

198

168

198

252

100

180

150

230

16%

120

10%

730

1,504

811

1,595

Zambia

Lusaka

748

894

1,424

148

189

271

230

271

344

125

225

188

288

19%

150

10%

1,445

2,833

1,534

2,913

CBRE PROJECT MANAGEMENT

KEY CONTACTS EMEA GWS PROJECT MANAGEMENT MATTHEW EASTWOOD Head of Occupier Project Management EMEA t: +44 (0) 7960 879 605 e: matthew.eastwood@cbre.com NICHOLAS WINTER Client Solutions t: +44 (0) 203 257 6732 e: nicholas.winter@cbre.com

EMEA GWS COST CONSULTANCY SAM BARNES Cost Consultancy Platform t: +44 (0) 7796 192 042 e: sam.barnes@cbre.com PENNY MOCINI Cost Consultancy Platform t: +44 (0) 7920 701 025 e: penny.mocini@cbre.com

AUTHORS NIKA BIOUKI Senior Programme Manager t: +44 (0) 7584 600 813 e: nika.biouki@cbre.com RUMANA URME Senior Cost Manager t: +44 (0) 7919 044 151 e: rumana.urme@cbre.com

DISCLAIMER 2018 CBRE CBRE 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.

c bre.com

Cover: CBRE Paris Office