FIT-OUT
COST
GUIDE
OCCUPIER PROJECT MANAGEMENT | EMEA
2014 EDITION
A
FOREWORD
Welcome to the
second edition of our
benchmarking report
that was developed
in response to
the most common
question our clients
ask; “how much will
it cost to fit-out…”?
I am delighted to present CBRE’s 2014 edition of the Fit-out cost guide. Having listened to
our readers’ feedback we have expanded the content this year to include information on
dilapidations/reinstatements and also increased the project-related specific information.
In 2013 we started to see a true up-turn in the market across EMEA. Sentiment levels increased
and in some countries the fast pace of growth even led to inflationary pressures. This was often
driven by local supply chains naturally shrinking to meet the demand of the recessionary phase.
As we emerged from the previous recession in the early 1990’s, there was much speculation that
new workplace strategies, denser occupancy levels and desk sharing would remain common
practice as occupiers sought to maintain lower occupancy costs. This didn’t play out in reality
back then, but I’m certain the wind of change will stick this time. Not only are all these workplace
practices now fully embedded in occupancy strategy, but all that talk and aspiration of the early
1990’s can now be turned into reality by the technology that exists to support such initiatives.
Cost remains high on the agenda in the up-turn. Reflecting this, CBRE have developed an
integrated global cost consultancy capability, with centres of excellence in China, India, London,
New York and Mexico. Please do contact any one of our project management team to learn more.
My vision is to establish this publication as the region’s definitive and premiere occupiers’ project
and cost management guide. I think we are well on the way to achieving this through the hard
work of my colleagues, in close collaboration with market leading consultant and supply partners,
Gensler, WSP and Haworth, for which I am hugely grateful.
This vision of excellence requires continued critique so please continue to provide feedback and
don’t hesitate to contact my team or I with any questions.
IAN SMITH
Head of Occupier Project
Management EMEA
ian.smith@cbre.com
FIT-OUT COST GUIDE | CBRE
3
INTRODUCTION
After the success
of last year’s
Fit-out cost guide
we have produced
an expanded
edition for 2014.
This includes more
detailed breakdown
of furniture costs
and new sections
on programme,
reinstatements, AV
and security costs.
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FIT-OUT COST GUIDE | CBRE
The intention of this cost guide is to provide a convenient tool for commercial occupiers with
relevant and useful information. We have had great feedback from our clients who used the
previous 2013 publication in many ways. The most common uses of the guide included;
• Commercial assurance – the ‘ready reckoner’ tool was used to verify estimates from third party
vendors.
• Capital Planning – clients have used the ‘ready reckoner’ to create stage one budgets for their
rolling capital plans.
• Benchmarking – clients have used location indices to normalise their internal benchmarking.
• Inspiration – clients have explored creating their own version of the fit-out guide for their
internal real estate departments based on client specific specifications.
This year we have expanded our database capturing information across 52 major cities across
EMEA - 14 more cities than 2013’s database - also increasing the information capture, recording
more detailed knowledge.
PENNY CROMPTON
Head of Cost and Commercial
Management GCS EMEA
penny.crompton@cbre.com
FIT-OUT COST GUIDE | CBRE
5
PRICING ASSUMPTIONS
A measured pricing template was issued to
our colleagues for high, medium and low
specifications to capture costing information
for our standard 1,000 sq m or 10,000 sq ft
fit-out. This was priced locally based on the
following assumptions:
• The building is located in the central
business district and is in good CAT A
condition
• The general arrangement is described
below, the project design and building are
considered to hold no abnormalities
6
FIT-OUT COST GUIDE | CBRE
• This is a generic design which does not take
into account cultural differences and country
specific space planning considerations or
local regulations
• Costs have been generated in line with
a base building that has the necessary
infrastructure to support the fit-out. For
example, suitable basebuild HVAC and
power requirements to support the fit-out
• If you are pricing a project which varies
from the assumptions, please do not
hesitate to contact our Project Management
team for additional guidance.
FIT-OUT COST GUIDE | CBRE
7
LOW SPECIFICATION
Open plan
T-UP/Tibas workstations including
cable management and light
screens in fabric F0
Private offices
 T-UP/Tibas workstations
with return top including
cable management
(screens NOT included)
Tore Table breakout
Seating
Breakout furniture
SYSTEM 29 task chairs with upholstered
seat F0 and mesh back. Black plastic base
 LTB Soft seating
 VERY sled base chairs in plastic with
 T-UP round table - HUGO hinged doors
storage in metal
SYSTEM 29 sled base meeting chairs with
upholstered seat F0 and mesh back. Powder
coated base
FURNITURE SUPPLY COST
Meeting rooms
PLANES and T-UP meeting
tables (cable management
NOT included)
8
FIT-OUT COST GUIDE | CBRE
Reception
 Reception counter with T-UP desking
€75,000
FIT-OUT COST GUIDE | CBRE
9
MEDIUM SPECIFICATION
Open plan
 KIRON workstations
including cable
management and framed
screens in fabric F1
Seating
Breakout furniture
 SYSTEM 62
task chairs with
upholstered seat F1
and mesh back. Black
aluminium base
 SYSTEM 59 sled
base meeting chairs
with upholstered seat
F1 and mesh back.
Powder coated base
 HELLO armchairs with writing tablet
upholstered in fabric F4
 VERY meeting chairs in plastic with fabric F1
upholstered seat and back/KIRON round
table
 Avenue armchairs upholstered F3
 VADOS hinged doors storage in melamine
Reception
Breakout furniture
 HELLO armchairs with writing tablet
upholstered in fabric F4
 VERY meeting chairs in plastic with fabric F1
upholstered seat and back/KIRON round table
 Avenue armchairs upholstered F3
 VADOS hinged doors storage in melamine
10
FIT-OUT COST GUIDE | CBRE
FURNITURE SUPPLY COST
Meeting rooms
 PLANES and KIRON meeting
tables (cable management
NOT included)
€108,500
FIT-OUT COST GUIDE | CBRE
11
HIGH SPECIFICATION
LC2 breakout chairs
Open plan
 Individually height adjustable
workstations including cable
management and framed screens in
fabric F1
Breakout furniture
Seating
 Open plan: SYSTEM 89 task
chairs with upholstered seat
F4 and mesh back. Polished
aluminium base
 Private offices: S-CON task
chairs upholstered in leather F6.
Polished aluminium base
 S-CON meeting chairs
upholstered in fabric F5.
Polished aluminium base
12
FIT-OUT COST GUIDE | CBRE
 HELLO armchairs with writing tablet
upholstered in leather F6
 GINGER ALE breakout chairs in leather with
BIPLANE round table
 ARCHIBALD armchairs upholstered in
leather with BIPLANE coffee table
FURNITURE SUPPLY COST
€189,500
FIT-OUT COST GUIDE | CBRE
13
ARCHITECTURAL COMMENTS
Towards the lower end the emphasis is placed on getting the most out of
the existing space. Budget is tight for both front and back of house
spaces, focus is placed on changing building services to maximise the
quality of the design.
Mid end office fit-out typically pays heavier budget weighting towards
front of house spaces, with specific emphasis on client facing areas such
as the reception and client conference suites. Back of house spaces are
more budget conscious but still making sure staff are well catered for.
A high end office interior would usually see equal weighting paid to both
front and back of house space. Rich high quality finishes would be used
to create an exceptional quality experience, reflecting high standards for
client facing areas, staff workspaces and amenities areas.
LOW SPECIFICATION
Good quality carpet tiles to the lift lobby and reception area and client facing corridor
LOW SPECIFICATION... CONTINUED
Reuse existing ceilings to client facing areas with limited new lighting
Open plan areas to have carpet tiles to the floor and reconfigured lighting as per the base
building provision
Base building provided Cat A ceiling
Specialist joinery to copy / print / coat closet / teapoint areas in plastic laminate finish
doors, carcasses and tops
Internal offices, meeting rooms and quiet booths with demountable single glazed office
fronts with full height painted doorsets
14
Stone floors to lift lobby and reception area and client facing corridor
Client facing meeting rooms to have good quality
broadloom carpet
Feature stone wall cladding to lift lobby and accent walls to reception
Window coverings to all client facing areas to have
high quality full height window sheers
Specialist joinery panelling to client facing corridor
Use of scene setting lighting controls
Bespoke reception desk using stone, metal and timber finishes with integrated specialist
lighting
All new ceilings to client facing areas to have fully
coordinated MEP
Very high acoustic rated double glazed meeting room fronts with bespoke full height veneer
doorsets
Specialist light throughout client facing areas
Client facing meeting rooms to have specialist joinery panelling with fully integrated state of
the art AV presentation equipment
Open plan areas to have good quality carpet tiles to the floor and new suspended linear
direct / indirect luminaires
Client facing meeting rooms to have stone floor borders with inset hand-tufted broadloom
carpet
Base building provided Cat A ceiling
Bespoke joinery serving and storage credenzas to all client facing meeting rooms
Specialist joinery to copy / print / coat closet / teapoint areas in timber veneer with solid
surfacing tops
Window coverings to all client facing areas to have high quality full height window sheers
with dress curtains
Specialist joinery employed for storage, printer and recycling units
Use of scene setting lighting controls with an integration to the AV systems
Internal offices, meeting rooms and quiet booths with good quality demountable double
glazed office fronts with full height veneer doorsets
All new ceilings to client facing areas to have fully coordinated MEP
Wall mounted integrated proprietary workwall design
furniture for cellular spaces
Specialist lighting throughout client facing areas
Staff breakout areas with good quality porcelain tile floor, proprietary lacquer finished
kitchen units with integrated appliances and proprietary banquette seating
Open plan areas to have good quality carpet tiles to the floor and new suspended DALI
controlled suspended linear direct/indirect luminaires
New specialist lighting and surface mounted AV equipment
Base building provided Cat A ceiling
Alternative Working Zone or Staff Drop-In area to have proprietary workwalls and work island
with specialist lighting and integrated surface mounted AV equipment
Specialist joinery to copy / print / coat closet / teapoint areas in timber veneer with stone
tops
Specialist lighting using standard lamps
Specialist joinery employed for storage, printer and recycling units
lient facing meeting rooms to have specialist joinery panelling with fully integrated state of
the art AV presentation equipment
Internal offices, meeting rooms and quiet booths with high quality demountable double
glazed office fronts and doorsets
Floor standing proprietary workwall design furniture for cellular spaces
MEDIUM SPECIFICATION
Proprietary reception desk
Good quality porcelain tile floors to lift lobby and reception
area and client facing corridor
Acoustic rated double glazed meeting room fronts with bespoke full height painted doorsets
Feature timber wall cladding to lift lobby and accent
walls to reception
Client facing meeting rooms to have accent paint to drylined partitions with surface mounted
AV presentation equipment
Specialist joinery panelling to client facing corridor
Proprietary serving and storage credenzas to all client facing meeting rooms
Bespoke reception desk using timber and glass finishes
Client facing meeting rooms to have good quality carpet tile
High acoustic rated double glazed meeting room fronts with
bespoke full height veneer doorsets
FIT-OUT COST GUIDE | CBRE
HIGH SPECIFICATION
Bespoke joinery serving and storage credenzas to all
client facing meeting rooms
Window coverings to all client facing areas to be as per the base building provision
Feature paint finish to walls lift lobby and accent walls to reception
Painted client facing corridor with accent colour
MEDIUM SPECIFICATION... CONTINUED
FIT-OUT COST GUIDE | CBRE
15
CAT B AND PROFESSIONAL FEES
Taking the design information and the pricing
document, our local offices have estimated the
construction cost and professional fees for each
of the low, medium and high specifications.
The construction cost is based on a build up of
measured rates and quantities. The professional
fees are calculated on a percentage of
construction costs based on local benchmarks.
Using this information we have put together
our ‘Ready Reckoner’ answering the question
of how much does it cost to fit-out an office in
EMEA. The cost information is presented in our
‘Ready Reckoner’ format below:
Includes: CAT B Construction Costs,
Professional Fees
Excludes: CAT A works, Furniture costs (pages
20-21), IT, Security and AV (pages 26-27),
Relocation costs, Reinstatement (pages 24-25),
VAT. and contingencies.
16
FIT-OUT COST GUIDE | CBRE
LOW
MED
HIGH
LOW
MED
HIGH
COUNTRY
OFFICE
(€ PER SQ FT /
€ PER SQ M)
(€ PER SQ FT /
€ PER SQ M)
(€ PER SQ FT /
€ PER SQ M)
BUILD TIME
INFLATION
COUNTRY
OFFICE
(€ PER SQ FT /
€ PER SQ M)
(€ PER SQ FT /
€ PER SQ M)
(€ PER SQ FT /
€ PER SQ M)
BUILD TIME
INFLATION
ANGOLA
LUANDA
133 (1431)
171 (1839)
226 (2431)
18 weeks
0-1%
MOROCCO
MARRAKESH
53 (569)
64 (693)
87 (934)
10-12 weeks
1-2%
AUSTRIA
VIENNA
75 (807)
101 (1086)
137 (1474)
8-12 weeks
1-2%
NIGERIA
ABUJA
104 (1122)
134 (1443)
183 (1968)
16-18 weeks
14-16%
BELGIUM
BRUSSELS
67 (725)
87 (933)
122 (1308)
8-10 weeks
0-1%
NORWAY
OSLO
93 (1001)
124 (1331)
162 (1745)
10-12 weeks
6-7%
BULGARIA
SOFIA
28 (301)
37 (400)
52 (563)
8-10 weeks
1-2%
OMAN
MUSCAT
59 (633)
76 (815)
104 (1122)
16-18 weeks
6-8%
CROATIA
ZAGREB
44 (473)
56 (602)
74 (796)
8-10 weeks
0-1%
POLAND
WARSAW
37 (398)
49 (523)
68 (733)
8-12 weeks
1-3%
CZECH REPUBLIC
PRAGUE
44 (470)
58 (628)
82 (885)
8-10 weeks
1-2%
PORTUGAL
LISBON
34 (367)
47 (509)
68 (734)
8-10 weeks
2-3%
DENMARK
COPENHAGEN
102 (1094)
131 (1407)
178 (1918)
10-12 weeks
0-1%
QATAR
DOHA
66 (709)
92 (993)
133 (1433)
12-14 weeks
8-11%
EGYPT
CAIRO
65 (701)
84 (902)
115 (1240)
15 weeks
8-11%
ROMANIA
BUCHAREST
35 (377)
46 (493)
64 (690)
8-10 weeks
3-4%
FINLAND
HELSINKI
104 (1123)
129 (1393)
171 (1844)
12-16 weeks
0-1%
RUSSIA
MOSCOW
58 (619)
74 (796)
102 (1096)
10-12 weeks
0-1%
FRANCE
PARIS
106 (1145)
132 (1422)
186 (2001)
10 weeks
1-2%
SAUDI ARABIA
RIYADH
62 (665)
89 (954)
127 (1371)
12-14 weeks
6-8%
GERMANY
BERLIN
95 (1022)
113 (1215)
146 (1570)
8-10 weeks
1%
SERBIA
BELGRADE
39 (418)
50 (535)
68 (732)
8-10 weeks
3-5%
GERMANY
FRANKFURT
104 (1119)
124 (1334)
150 (1614)
8-10 weeks
1%
SLOVAKIA
BRATISLAVA
48 (520)
62 (668)
85 (916)
8-12 weeks
1-2%
GERMANY
MUNICH
112 (1205)
128 (1,377)
159 (1646)
8-10 weeks
1%
SOUTH AFRICA
JOHANNESBURG
58 (628)
75 (808)
103 (1104)
12-14 weeks
7-10%
GERMANY
STUTTGART
104 (1119)
126 (1355)
150 (1614)
8-10 weeks
1%
SPAIN
BARCELONA
50 (537)
64 (693)
89 (955)
12 weeks
1-2%
GHANA
ACCRA
112 (1205)
144 (1549)
196 (2110)
18-20 weeks
9-11%
SPAIN
MADRID
50 (537)
64 (693)
89 (955)
12 weeks
1-2%
GREECE
ATHENS
42 (450)
53 (568)
72 (769)
8-10 Weeks
0-1%
SWITZERLAND
GENEVE
103 (1104)
131 (1409)
177 (1907)
10 weeks
0-1%
HOLLAND
AMSTERDAM
59 (632)
77 (824)
107 (1147)
8-10 weeks
0-1%
SWITZERLAND
ZURICH
98 (1059)
131 (1411)
180 (1939)
10-12 weeks
0-1%
HUNGARY
BUDAPEST
52 (561)
67 (722)
93 (996)
10-12 weeks
0-1%
TURKEY
ISTANBUL
41 (438)
51 (544)
68 (734)
8-10 weeks
10-11%
IRELAND
DUBLIN
58 (627)
76 (819)
103 (1109)
10 weeks
3-5%
UAE
ABU DHABI
71 (762)
88 (948)
119 (1277)
10-12 weeks
9-11%
ISRAEL
TEL AVIV
47 (506)
66 (709)
89 (962)
14-16 weeks
1-2%
UAE
DUBAI
74 (801)
92 (994)
126 (1356)
8-10 weeks
9-11%
ITALY
MILAN
65 (698)
86 (923)
117 (1255)
10-12 weeks
2-3%
UAE
KUWAIT
59 (639)
79 (847)
117 (1262)
8-10 weeks
8-10%
ITALY
ROME
65 (698)
85 (911)
117 (1255)
12-14 weeks
2-3%
UK
ABERDEEN
57 (611)
73 (786)
96 (1036)
10-12 weeks
1-3%
KAZAKHSTAN
ASTANA
46 (494)
59 (636)
82 (877)
12 weeks
6-8%
UK
MANCHESTER
57 (611)
73 (786)
96 (1036)
10-12 weeks
2-4%
KENYA
NAIROBI
96 (1035)
124 (1332)
169 (1820)
18-20 weeks
9-11%
UK
LONDON
73 (786)
96 (1028)
126 (1351)
10-12 weeks
4-6%
LATVIA
RIGA
43 (458)
57 (609)
82 (879)
12-16 weeks
0-1%
UK
GLASGOW
65 (698)
84 (899)
110 (1182)
10-12 weeks
1-3%
LEBANON
BEIRUT
64 (693)
83 (892)
119 (1281)
12-16 weeks
6-8%
UK
BELFAST
37 (398)
49 (530)
53 (573)
10-12 weeks
3-5%
WARNING
All prices have been aligned to show a CAT B cost. In some
countries however, particularly in the emerging markets,
tenants will be required to fit-out their building from shell
and core.
CATEGORY A FIT-OUT (WARM SHELL)
Typically what the developer provides as part of the rentable
office space and usually comprises the following:
 Raised floors
 Suspended ceilings
 Extension of the mechanical and electrical
services above the ceiling from the riser across
the lettable space
 Finishes to the internal face of the external
and core walls
Blinds
CATEGORY B FIT-OUT (TENANT FIT OUT)
Category B completes the fit-out to the occupier’s specific
requirements, typically comprising the following:






Installation of cellular offices
Enhanced finishes
Conference/meeting room facilities
Reception area
Enhanced services/specialist lighting
Tea point/kitchen fit-out
FIT-OUT COST GUIDE | CBRE
17
250
200
200
150
150
€
€
LUANDA
ACCRA
PARIS
50
50
0
0
HIGH
MID
LOW
LUANDA
ABUJA
ACCRA
ZURICH
PARIS
COPENHAGEN
ABUJA
GENEVE
ZURICH
HELSINKI
COPENHAGEN
NAIROBI
GENEVE
OSLO
HELSINKI
MUNICH
NAIROBI
STUTTGART
OSLO
FRANKFURT
MUNICH
BERLIN
STUTTGART
VIENNA
FRANKFURT
DOHA
BERLIN
RIYADH
VIENNA
DUBAI
DOHA
LONDON
RIYADH
BRUSSELS
DUBAI
BEIRUT
LONDON
ABU
DHABI
BRUSSELS
KUWAIT
BEIRUT
ROME
ABU DHABI
MILAN
KUWAIT
CAIRO
ROME
GLASGOW
MILAN
AMSTERDAM
CAIRO
MUSCAT
GLASGOW
DUBLIN
AMSTERDAM
JOHANNESBURG
MUSCAT
MOSCOW
DUBLIN
MANCHESTER
JOHANNESBURG
ABERDEEN
MOSCOW
BUDAPEST
MANCHESTER
TEL
AVIV
ABERDEEN
MADRID
BUDAPEST
BARCELONA
TEL AVIV
MARRAKESH
MADRID
BRATISLAVA
BARCELONA
PRAGUE
MARRAKESH
RIGA
BRATISLAVA
ASTANA
PRAGUE
ZAGREB
RIGA
ATHENS
ASTANA
ISTANBUL
ZAGREB
LISBON
ATHENS
WARSAW
ISTANBUL
BELGRADE
LISBON
BUCHAREST
WARSAW
BELFAST
BELGRADE
SOFIA
BUCHAREST
100
SOFIA
BELFAST
100
19
FIT-OUT COST GUIDE | CBRE
FIT-OUT COST GUIDE | CBRE
18
250
€ / SQ FT FOR CAT B & PROFESSIONAL FEES
CAT B AND PROFESSIONAL FEES
FURNITURE
Whether it is the setting up of a new sales
office or a large shared services centre, it is
becoming increasingly important to create an
office that will offer an interesting, productive
and engaging space. The correct selection and
specification of office furniture, in conjunction
with other factors such as business strategy, IT
and office design, can have a huge impact on
human performance.
With the introduction of global standards,
many clients are choosing to procure global
frameworks for the installation of furniture. A
global supplier can offer consistency in product,
customer service and a single point of contact
for engagement.
Within the open borders of the European Union
(EU) there are, less often, tax reasons to choose
locally manufactured product. However outside
of the EU there are large differences in the cost
FURNITURE READY RECKONER
of installing the same product globally. In some
countries real estate teams need to carefully
consider the pros and cons of installing local
products against those of importing products of
a global standard.
PATRICK ABRAMOFF
Director Global Accounts Europe, HAWORTH
+49 1622781162
patrick.abramoff@haworth.com
Locally manufactured office furniture can
often be more attractive than that of imported
furniture due to lower costs. However, they
do not benefit from consistent service level,
standard warranties, compliance to norms
testing and standards and the expectation
of quality of product may not be achieved.
This decision is unique to clients, based on
individual project drivers.
CBRE’s FUSION partner Haworth has priced
the furniture component of our 1,000 sq m fitout and the variance in cost of product can be
seen below.
MEDIUM SPECIFICATION COST COMPARISON
25
INSTALLATION
TAX
LOGISTICS
BASE COST
20
15
€
10
COUNTRY
LOW
MED
HIGH
INSTALL
LOGISTICS
TAX
LEAD
TIME
(WEEKS)
COUNTRY
LOW
MED
HIGH
INSTALL
LOGISTICS
TAX
LEAD
TIME
(WEEKS)
ABU DHABI
7.50
10.80
18.90
4%
20%
5%
12
KENYA
7.50
10.80
18.90
8%
30%
25%
12
ANGOLA
7.50
10.80
18.90
VARIES
VARIES
VARIES
VARIES
KUWAIT
7.50
10.80
18.90
8%
20%
5%
11
AUSTRIA
7.50
10.80
18.90
6%
0%
0%
5
LATVIA
7.50
10.80
18.90
4%
9%
0%
5
BELGIUM
7.50
10.80
18.90
3%
0%
0%
5
LEBANON
7.50
10.80
18.90
8%
20%
45%
7
BULGARIA
7.50
10.80
18.90
5%
10%
0%
7
MOROCCO
7.50
10.80
18.90
10%
10%
25%
6
CROATIA
7.50
10.80
18.90
5%
8%
0%
5
NIGERIA
7.50
10.80
18.90
VARIES
VARIES
VARIES
VARIES
CZECH REP
7.50
10.80
18.90
4%
5%
0%
6
NORWAY
7.50
10.80
18.90
4%
9%
0%
5
DENMARK
7.50
10.80
18.90
4%
8%
0%
5
OMAN
7.50
10.80
18.90
6.0%
20%
5%
11
DUBAI
7.50
10.80
18.90
4%
20%
5%
6
POLAND
7.50
10.80
18.90
4%
9%
0%
5
EGYPT
7.50
10.80
18.90
6%
24%
60%
11
PORTUGAL
7.50
10.80
18.90
3%
0%
0%
5
FINLAND
7.50
10.80
18.90
4%
9%
0%
5
QATAR
7.50
10.80
18.90
4%
20%
5%
11
FRANCE
7.50
10.80
18.90
3%
0%
0%
5
ROMANIA
7.50
10.80
18.90
5%
10%
0%
5
GERMANY
7.50
10.80
18.90
3%
0%
0%
5
RUSSIA
7.50
10.80
18.90
4%
14%
25%
6
GHANA
7.50
10.80
18.90
8%
24%
20%
12
SAUDI ARABIA
7.50
10.80
18.90
6%
20%
20%
11
GREECE
7.50
10.80
18.90
5%
10%
0%
4
SERBIA
7.50
10.80
18.90
5%
14%
20%
5
HOLLAND
7.50
10.80
18.90
8%
0%
0%
5
SLOVAKIA
7.50
10.80
18.90
4%
9%
0%
5
HUNGARY
7.50
10.80
18.90
4%
9%
0%
5
SOUTH AFRICA
7.50
10.80
18.90
6%
18%
20%
10
ICELAND
7.50
10.80
18.90
4%
9%
0%
8
SPAIN
7.50
10.80
18.90
3%
8%
0%
5
IRELAND
7.50
10.80
18.90
3%
6%
0%
5
SWEDEN
7.50
10.80
18.90
4%
9%
0%
5
ISRAEL
7.50
10.80
18.90
5%
16%
12%
6
SWITZERLAND
7.50
10.80
18.90
3%
6%
0%
5
ITALY
7.50
10.80
18.90
3%
6%
0%
5
TURKEY
7.50
10.80
18.90
5%
10%
7%
5
KAZAKHSTAN
7.50
10.80
18.90
4%
24%
15%
8
UK
7.50
10.80
18.90
3%
6%
0%
6
5
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20
FIT-OUT COST GUIDE | CBRE
FIT-OUT COST GUIDE | CBRE
21
22
23
REINSTATEMENT
Lease reinstatement (or dilapidations as in the
UK) is a process whereby landlords are entitled
to claim compensation from tenants should
they fail to comply with lease terms. Tenants are
made fully aware of the contractual obligations
of a lease and any resulting penalties.
The nature of local property markets and
parameters of the individual lettings influences
these liabilities; in some countries the landlord
takes on most obligations to repair and will
even fit-out the premises to suit the tenant’s
needs. In other countries, the tenant is
responsible for all of these and at the end
of the term has to reverse any alterations
that they have made. In some countries the
contractual obligation defines the liability,
in others the impact of what the landlord
subsequently does has a much greater influence
and in others it is not the culture to pursue
claims for reinstatement even if there might
be contractual obligations. As a result, leases
and responsibilities are rarely alike and it is
imperative to review each case individually
- generalising to provide these typical rates
cannot provide specific figures for individual
cases.
Against each location, 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. This
assumes moderate wear of the space and the
arrangement of fit-out noted in the example.
Where the extent of the alterations is greater,
or the wear more significant, the tenant is
responsible for wider portions of the building
such as the exterior/central plant or their
obligations are more onerous than has been
noted, these figures will increase.
24
FIT-OUT COST GUIDE | CBRE
TYPICAL LEASE*
€ PER
SQ FT
€ PER
SQ M
COUNTRY
OFFICE
LEASE LIABILITY ASSUMPTION
TYPICAL LEASE*
€ PER
SQ FT
€ PER
SQ M
€3,000
€0.30
€3
OMAN
MUSCAT
Full removal of fit-out
€122,000
€12.20
€122
Full removal of fit-out
€104,000
€10.40
€104
POLAND
WARSAW
Typically partial removal of fit-out is required
€4,000
€4.40
€44
Full removal of fit-out and repair
€164,000
€16.40
€164
PORTUGAL
LISBON
Typically partial removal of fit-out is required, often negotiated.
€81,000
€8.10
€81
QATAR
DOHA
Typically partial removal of fit-out is required. often negotiated
€122,000
€12.20
€122
€6
ROMANIA
BUCHAREST
Full removal of fit-out
€74,000
€7.40
€74
2. Reinstatement assumes that all tenant fit-out remains as
shown on the plan at the end of the lease and therefore
cost of removal forms part of the cost budget. Assumes all
alterations are to be removed and that none are retained
by the landlord as improvements.
Landlord generally undertakes fitout therefore clear space only.
€5,500
€0.55
€6
Typically landlord undertakes fitout, re-decoration and clearing of space only
€5,500
€0.55
€226,000
€22.60
€226
RUSSIA
MOSCOW
Landlord generally undertakes fitout therefore clear space only.
€7,000
€0.70
€7
3. Budget makes no allowance for loss of rent.
Fitout typically retained by landlord, re-decoration and clearing of
€7,500
€0.75
€8
SAUDI ARABIA
RIYADH
Typically partial removal of fit-out is required. Often negotiated
€116,000
€11.60
€116
4. Budget makes no allowance for non-recoverable VAT.
Typically landlord undertakes fitout, re-decoration and clearing of space only
€14,500
€1.45
€15
SERBIA
BELGRADE
Full removal of fit-out and repair
€80,000
€8.00
€80
5. Budget makes no allowance for professional fees not
directly related to the construction / reinstatement costs.
COUNTRY
OFFICE
LEASE LIABILITY ASSUMPTION
ANGOLA
LUANDA
Landlord generally undertakes fitout therefore clear space only.
AUSTRIA
VIENNA
BELGIUM
BRUSSELS
CROATIA
ZAGREB
CZECH REPUBLIC
PRAGUE
DENMARK
COPENHAGEN Full removal of fit-out
EGYPT
CAIRO
FINLAND
HELSINKI
FRANCE
PARIS
Full removal of fit-out
€173,000
€17.30
€173
SLOVAKIA
BRATISLAVA
Full removal of fit-out and repair
€81,000
€8.10
€81
GERMANY
FRANKFURT
Full removal of fit-out
€100,000
€10.00
€100
SOUTH AFRICA
CAPE TOWN
Full removal of fit-out
€51,000
€5.10
€51
GERMANY
STUTTGART
Full removal of fit-out
€98,000
€9.80
€98
SPAIN
BARCELONA
Full removal of fit-out
€94,000
€9.40
€94
GERMANY
MUNICH
Full removal of fit-out
€100,000
€10.00
€100
SPAIN
MADRID
Full removal of fit-out
€94,000
€9.40
€94
GERMANY
BERLIN
Full removal of fit-out
€103,000
€10.30
€103
SWEDEN
STOCKHOLM
Typically landlord undertakes fitout, re-decoration and clearing of space only
€14,000
€1.40
€14
GHANA
ACCRA
Landlord generally undertakes fitout therefore clear space only.
€6,000
€0.60
€6
SWITZERLAND
GENEVA
Full removal of fit-out and repair
€234,000
€23.40
€234
GREECE
ATHENS
Full removal of fit-out
€64,000
€6.40
€64
SWITZERLAND
ZURICH
Full removal of fit-out and repair
€234,000
€23.40
€234
HOLLAND
AMSTERDAM
Typically landlord undertakes fitout, re-decoration and clearing of space only
€8,500
€0.85
€9
TURKEY
ISTANBUL
Typically landlord retains fitout, re-decoration and clearing of space only
€10,000
€1.00
€10
IRELAND
DUBLIN
Full removal of fit-out
€136,000
€13.60
€136
UAE
DUBAI
Full removal of fit-out
€122,000
€12.20
€122
ISRAEL
TEL AVIV
Typically landlord undertakes fitout, re-decoration and clearing of space only
€7,000
€0.70
€7
UAE
ABU DHABI
Full removal of fit-out
€122,000
€12.20
€122
ITALY
MILAN
Full removal of fit-out and repair
€150,000
€15.00
€150
UK
BELFAST
Full removal of fit-out
€133,000
€13.30
€133
ITALY
ROME
Full removal of fit-out and repair
€150,000
€15.00
€150
UK
ABERDEEN
Full removal of fit-out
€139,000
€13.90
€139
KAZAKHSTAN
ASTANA
Clear space only
€6,500
€0.65
€7
UK
MANCHESTER Full removal of fit-out
€133,000
€13.30
€133
MOROCCO
RABAT
Full removal of fit-out
€42,000
€4.20
€42
UK
GLASGOW
Full removal of fit-out
€154,000
€15.40
€154
NORWAY
OSLO
Landlord generally undertakes fitout therefore clear space only.
€14,000
€1.40
€14
UK
LONDON
Full removal of fit-out
€177,000
€17.70
€177
*REINSTATEMENT COST FOR THE EXAMPLE
KEY QUALIFICATIONS/CONSIDERATIONS
1. Budget assumes that all tenant chattels are removed by the
tenant and the cost of removal is therefore excluded from
the budget.
6. Budget is based on an estimate of prices prevailing as at
April 2014.
7. Budget assumes that all works will be undertaken as a
single contract and within normal working hours.
8. Budget assumes general wear and tear rather than major
disrepair or abuse will be present to the floor.
9. Budget assumes that the tenants are on internal repairing
leases and therefore only have a responsibility within their
demise which does not expend to any elements of the
common parts (structure, frame, sanitary accommodation,
windows, central M&E).
10. Budget assumes that the floor was provided on a standard
UK CAT A basis with suspended ceilings, raised access
floor and carpet tiles on reinstatement.
11. Budget assumes that no structural reinstatement works are
required.
Mark Tatlow
Building Consultancy Building Surveying
mark.tatlow@cbre.com
FIT-OUT COST GUIDE | CBRE
25
SECURITY
Security installations
will differ greatly
depending on the
type of office and
client standards that
may be in place.
The specification
described is what
we would expect
for the fit-out of
the example design
captured in this
guide. More detailed
consideration as
follows;
AUDIO VISUAL (AV) INSTALLATIONS
ACCESS CONTROL SYSTEM
The system employed will be a fully integrated
Access Control, alarm processing and photo
badging system capable of managing a single
site, multi-tenanted sites or expandable to
multiple sites in different geographical locations.
It shall utilise a fully integrated badging
production system and biometric template
management.
The System Server will utilise the following
subsystems:
ETHERNET CARD READERS
An advanced graphical user interface will be
provided for generating reports and for the
production of professional-quality badges.
The above security scheme is based on a
medium specification requirement.
The system will utilise an overall System Server
for centralised Access Control management.
The System Server will be housed in a suitable
enclosure with PSU, tamper switch, Ethernet
connectivity, internal database, and have the
option for battery backup with trickle charge
and over current protection to protect against
power loss.
Similarly to security,
audio visual (AV)
installations differ
greatly depending
on the type or client
specific layout. The
plan shows a typical
AV scheme for a
medium specification
fit-out with some
more technical details
as follows;
COST IN UK
26
FIT-OUT COST GUIDE | CBRE
The installation will provide an integrated
installation taking due cognisance of the interior
finishes of the tenants demise and will provide
a designed visual solution to compliment the
clients corporate image.
The AV installation will provide seamless
interface with the tenants’ corporate network
and enable future proofing of communication
links to ensure high definition visual displays
and clear voice communication without
extraneous interference.
The AV systems will be provided with
appropriate servers, data storage devices and
main equipment will be suitably located and
afforded the relevant ventilation and ambient
control for optimum performance.
The systems will integrate with the fire
alarm system for override in the case of fire
notifications or alarm protocols being initiated.
Meeting room
50inch TV with HDMI &
VGA input
Reception
50 inch TV for branding/
direct news link
Breakout
50 inch TV for branding/
direct news link
Fixed IP Cameras and IP
access control
£2.40 OR €2.88 PER SQ FT
The AV systems would be medium range high
quality equipment with the capability to be
upgraded for ‘Future AV’ installations such
as digital room booking systems which would
integrate with the clients management systems.
Main board room
65” display screen
IPTV
Resident PC with HDMI
& VGA input
COST IN UK
KEVIN SMITH
Director, WSP
kevin.smith@wsp.com
+44 (0)1223 558 050
£4.00 OR €4.84 PER SQ FT
FIT-OUT COST GUIDE | CBRE
27
PROGRAMME
Together with the development of the project
budget, the agreement of the programme
and key milestones define the key metrics for
initial Business Case approval to then report
against. Programming the lifecycle of any
project requires careful consideration, as within
EMEA especially no two projects are the same,
no unnecessary assumptions should be made.
Depending on location, key determiners to
consider include: local standards and traditions
relating to procurement strategy, statutory
approvals and regulations, lead time, customs
quarantining, and religious festivals to mention
but a few, notwithstanding Client’s own internal
approvals processes.
CBRE would always advocate engaging with
your Project Manager at the earliest opportunity
to assist in developing your programme and in
doing so maximising the opportunities for value
and minimising project risk.
The below programme defines CBRE’s standard
key stages of a typical fit-out project. This
example illustrates the associated typical
apportioned timeframes for each stage in
completing the example medium level 1000m²
CAT B fit-out in London.
We indicate in the Ready Reckoner the various
standard comparative construction phases
for respective countries. As mentioned above
however, there are many additional parameters
and determiners that would need to be
considered for each location and project that
can have either positive or negative influences
on the schedule. Acceleration measures can be
considered but there are always cost, value and
quality implications with this.
CITY
TOTAL TIME
BUILD TIME
(WORKING)
APPROVAL
TIME
PARIS
190 days
50 days
10 days
DUBLIN
192 days
50 days
30 days
ATHENS
210 days
70 days
80 days
WARSAW
223 days
60 days
30 days
MUNICH
227 days
50 days
20 days
LONDON
227 days
55 days
20 days
BUCHAREST
230 days
50 days
60 days
TEL AVIV
234 days
64 days
25 days
AMSTERDAM
290 days
50 days
20 days
The above table demostrates some of the key programme differences
experienced by different regions across EMEA
INCEPTION
DESIGN
PROCUREMENT
CONSTRUCTION WORKS
COMPLETION
1 MONTH
28
2 MONTHS
FIT-OUT COST GUIDE | CBRE
3 MONTHS
4 MONTHS
5 MONTHS
6 MONTHS
7 MONTHS
FIT-OUT COST GUIDE | CBRE
29
SPAIN & PORTUGAL
EMEA Occupier Project
Management Hubs
Ian Smith
Head of Occupier Project
Managment EMEA
Geert Wilmink
Benelux
Southern Europe was particularly affected by the Euro crisis, and resulted in both Portugal and
Spain experiencing severe downturns. However, following three years of recession, both countries
are now beginning to show signs of recovery. The resumption in Eurozone trade has caused a rise
in the level of exports with a notable contribution from tourism. Occupier markets have been fairly
subdued and it is now accepted that rents have reached the bottom of the cycle, leading to some
submarkets seeing activity return. The Lisbon market has seen a reduction in take-up as a result
of occupiers reducing their operation space, whilst in Madrid the improving sentiment has seen
occupiers expanding operations. This reflects occupiers sensing opportunities to upgrade their
space while rents are much reduced from previous peaks. In Barcelona, activity has been driven
by demand for space in non-urban areas and there is growing interest in refurbishment of existing
buildings.
Alex Von Erdely
Germany
Chris Maddison
UK & Nordics
Hub leader
LEYRE ECHEVARRIA ICAZA
David McConnell
Ireland
Covers
SPAIN & PORTUGAL
Marc Simon
France
A medium CAT B fit-out in this market would range from €47-€64 per sq ft with Barcelona and
Madrid at the higher end of this range and Lisbon at the lower end. Over recent years, similarly
to 2013, South East Europe has seen its construction markets become increasingly competitive
and as a result, fit-out costs have reduced in comparison with other regions. As a result, detailed
due diligence and pre-qualification of contractors in these markets is required with a particular
emphasis on the financial stability of the general contractors.
Inflation appears relatively steady at 1-3%, therefore providing a stable platform for growth in the
South East Europe construction market. Professional fee costs are very similar between Portugal
and Spain and range from 10-12%.
Generally the build time for a 1,000 sq m office is 8-12 weeks with a build out in Portugal being
slightly quicker than Spain.
Leyre Echevarría Icaza
Spain & Portugal
Pavel Yakimchuk
Russia
Simon Braithwaite
Africa
Renaud Vincedon
Switzerland
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FIT-OUT COST GUIDE | CBRE
Marcello Panizzutti
Italy, Croatia & Greece
Joref Hruska
Czech Republic & Slovakia
Kevin Gadsby
Middle East & Turkey
Jonathan Steer
Poland & CEE
FIT-OUT COST GUIDE | CBRE
31
CROATIA, GREECE & ITALY
These markets continued to contract through 2013, and are expected to see little, if any, growth
this year. The knock-on impact of the Eurozone debt crisis through prolonged deleveraging, as
well as contraction in inward investment levels and weak earnings growth, have had adverse
effects. Office vacancy rates typically remain high and, although new requirements are starting to
appear that will gradually erode supply, corporates remain cost-sensitive. In the short term at least,
landlords will continue to be obliged to offer high incentives to attract occupiers.
A medium CAT B fit-out in this market would range from €53-€86 per sq ft. the construction
market across these regions is relatively flat and will continue to be throughout 2014.
Hub leader
MARCELLO PANIZZUTTI
Covers
CROATIA, GREECE
& ITALY
32
FIT-OUT COST GUIDE | CBRE
Across this sub region, the approach to procurement is relatively stable utilising a traditional
approach with full design completed prior to tender and delivery. Obtaining permits can be
bureaucratic and additional time should be given at the front end of the programme for this
process, particularly in Greece, where this can be an issue.
Average inflation is still relatively stable when compared to other regions, inflation prediction range
is 0-3%.
CENTRAL EASTERN EUROPE
Divergent economic trends in these countries apply as the Central European countries have tended
to avoid much of the crisis afflicting the Eurozone. Romania, Poland and Bulgaria have been driven
by strong industrial production, and the revival of trade has boosted exports. Similarly in Austria,
although the economy is recovering slowly as much of Western Europe is. Similarly, markets in
CEE are seeing more activity than in their Eurozone peers. The Bucharest market has seen vacancy
levels slip, as demand has risen and supply remains tight. In Warsaw, occupier activity is strong,
with tenants expanding to take more space where they can. The supply pipeline is set to increase
the total stock by over 25% in the coming years, which should see downward pressure on prime
rents. Occupiers in Vienna have been less active, with take-up remaining steady and only rents at
the very prime end moving up.
Central Eastern Europe CAT B carries a greater range compared to other areas of Europe, the
medium CAT B range is €37-€50 per sq ft. Notwithstanding Vienna at €101 per sq ft. The inflation
outlook ranges from 1-5% with Serbia being the highest at 3-5%.
Our teams across this region have noted that the 1,000 sq m example could be built on site from
six-eight weeks in Prague; to eight to 12 in Warsaw and Bratislava. Project delivery strategy in this
region is often influenced by the approach of the landlord. It is not uncommon for the landlord’s
contractor to execute the tenant improvement works on behalf of our clients with the cost being
amortised over the term of the lease or a capital contribution is provided as an incentive. In both
instances the client direct items such as furniture security, IT and AV are procured in line with
corporate standards and novated to the landlord’s contractor.
Hub leader
JONATHAN STEER
Covers
AUSTRIA, BULGARIA,
POLAND, ROMANIA,
SERBIA
FIT-OUT COST GUIDE | CBRE
33
MIDDLE EAST & TURKEY
Despite security concerns and the potential for political instability in the region, investor sentiment
appears to have improved recently. As a result continued high rates of economic growth are
expected, with rising domestic demand supporting oil and commodity growth. Rental appreciation
is already evident as active demand picks. This is despite high headline vacancy rates and reflects
the shortage of good quality property in central areas. Increasingly corporate location decisions
are driven by upgrades, expansion or consolidation into more centralised areas, with a number of
requirements for new head-quarters in prime locations coming to the market.
Hub leader
KEVIN GADSBY
Covers
EGYPT, ISRAEL, TURKEY,
SAUDI ARABIA, UAE
The Middle East itself proves to be fairly consistent with mid level outputs for CAT B ranging from
€76-€92 per sq ft. This trend is broken somewhat by Turkey which is a fraction of the Middle East
cost at €51 per sq ft for mid-level fit-out.
Our research has shown that fit-out for an 1,000 sq m office will range from eight to12 weeks in
the UAE (where the construction market is more mature) and up to circa 15 weeks for Egypt. Key
risk areas from a timeline perspective would include up front permitting and approvals prior to start
on site, the importation of materials and a more immature contractor market. Additional time and
project management resource is often required to dovetail the corporate governance procedures
of blue chip clients with the typical working practices of this region. In terms of contract types,
established FIDIC contracts are often the better way to proceed as opposed to enforcing a more
onerous client specific contract.
BENELUX
Both the Netherlands and Belgium have seen growth prospects rise after fairly low activity over the
past 18 months. Solid performance from exports and the knock on effects of a wider Eurozone
recovery should drive growth, though domestic demand will remain limited. In particular, the
Netherlands will see private consumption continue to stagnate as ongoing austerity measures hit
consumer confidence. Demand for office space in the major markets has been patchy, with fewer
public sector deals and occupiers generally consolidating to make more efficient use of their real
estate. Rental growth is evident in the prime central business district areas of major markets, but
incentive packages are offered for tenants in non-core submarkets.
An average CAT B fit-out in this market would range from €77-€87 per sq ft. Typical fit-out time
for our model is eight to 10 weeks for both Belgium and Holland. Costs are still stable and
construction inflation predictions are expected to be 0-1%.
CBRE’s typical delivery strategy for clients in this market would be to operate as project manager
taking responsibility for procuring the trade packages. The savings in construction costs typically
outweighs the additional professional fees.
New ways of working continues to grow as we progress through 2014 and should be noted when
considering project costs. This has meant construction costs can differ greatly and factors such
as more open plan areas, flexible AV schemes and inspiring finishes are key considerations when
planning a budget.
Hub leader
GEERT WILMINK
Covers
BELGIUM AND
NETHERLANDS
Specific mention of Israel is warranted, mainly due to the range in costs experienced. Recent
experience has seen (aligned CAT B) fit-outs up to €89 per sq ft; and an increase in the number
of enquiries in this market in recent years. Delivery in this market is interesting; the property and
construction market is particularly insular with few multi-national consultants having a presence
which ultimately drives the professional fee market. As a result, the projects that have been
undertaken have required significant pre-planning and research into the construction market to
really understand the supply chain and early budget costs. Caution is advised in this area.
Research has shown that inflation in this region is unpredictable and due care and attention should
be taken when planning future projects in this region.
34
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35
AFRICA
Hub leader
SIMON BRAITHWAITE
Covers
ANGOLA, GHANA,
KENYA, NIGERIA &
SOUTH AFRICA
RUSSIA
Africa's macroeconomic outlook remains favourable. In 2013, the continent maintained an
average growth rate of about 4%. This is higher than the 3% experienced by the global economy
and underscores against the continent's resilience to global and regional headwinds. Economic
output in low-income countries is expected to drive the continents growth in 2015 to above 5%,
with increases in Sub-Saharan Africa also. The gradual strengthening of the world economy and
improvements in political and social stability will further enhance prospects. The emerging markets
in West Africa – where the energy sector drives market activity – have some of the most expensive
office markets in the world, with rents in Luanda at the same level as London and Hong Kong.
Occupiers in this sector require the best units in the most desirable locations, so the demand for
new office space regularly outpaces supply. This exerts significant upward pressure on rents.
Russia has experienced a turbulent past six months, and the economy has suffered accordingly.
GDP expanded by 1.2% in 2013, but has since declined with the forecast for 2014 set to
be a modest 0.2%. Domestic demand is weak, with tight monetary conditions, falling capital
expenditure and geopolitical risks weighing on confidence. Further to this, exports – a significant
driver of the economy in recent years – are sluggish. However, the Moscow office market has seen
solid levels of activity of late. Take-up surpassed 1m sq m in 2013, with most firms choosing to decentralise from the central business district to minimise costs. This is particularly prominent among
Russian firms, as international multinationals occupy space in the prime locations. There has also
been an increase in the level of development, with over 800,000 sq m of space being delivered to
the market.
A medium CAT B fit-out in this market would range from €75-171 per sq ft. Luanda retains its
2013 title as ‘the most expensive city in the world’, CAT B costs are still exceptionally high with a
mid level cost of €189 per sq ft. The difference between South Africa and other regions remains
strong, with South Africa continuing to prove itself as a steady market. Emerging markets in Kenya,
Ghana, Angola and Nigeria can be volatile and difficult to service, as the choice of consultants in
these regions is limited.
Given current volatilities within Ukraine we have not included cost information for this country. A
medium Cat B cost in Russia is from €74 per sq ft. The market in Moscow is very much mature with
similar fit-outs taking 10-12 weeks.
Inflation predictions are very much towards the bottom of the European scale with expectation
sitting at 0-1%.
Hub leader
PAVEL YAKIMCHUK
Covers
RUSSIA
Various withholding taxes apply within the region and should be noted when compiling budgets.
The availability of consultants and contractors can be poor in northern regions of Africa and can
fyrther influence programme and cost.
Inflation predictions differ greatly between Angola at almost inflation neutral, and other African
regions which range from 7-16%.
36
FIT-OUT COST GUIDE | CBRE
FIT-OUT COST GUIDE | CBRE
37
UK, NORDICS & IRELAND
GERMANY, CZECH REPUBLIC & SLOVAKIA
The UK economy has been one of the star performers in Europe with recent indicators showing
acceleration in all the main components of activity, economic forecasts being revised upwards and
expectation starting to grow that the first rise in interest rates could come earlier than expected. By
contrast Denmark’s recovery from the global crisis has been notably sluggish. While Copenhagen
has done comparatively well in economic terms, subdued leasing activity and loose supply regime
are preventing any short-term increase in rents.
In the UK the design and build trend continues to grow in the office fit-out industry and a typical fitout for a 1,000 sq m fit-out would be 10-12 weeks but this can be shortened or extended to meet
the clients’ requirements and programme. London Fit-out costs ranges from €73-€126 per sq ft.
Economic fundamentals are broadly favourable and expectations for short-term growth remain
significantly higher than for much of the rest of the Eurozone. Growth also appears to be wellbalanced with positive indicators for private consumption as well as in the manufacturing-exports
sector. The extent to which consumer demand remains positive is a key factor here. Despite much
more manageable levels of personal debt than many other parts of Europe, Germany has been
characterised by low levels of personal spending growth. Most current indicators – strong income
growth, a strong labour market and higher household spending – suggest that this will make a
bigger contribution to growth in the future. Office demand, which had been somewhat patchy in
the post financial crisis period, has stabilised and is expected to trend upwards, providing support
for rents at the prime end of the market even while headline vacancy remains high.
Hub leader
CHRIS MADDISON
Contractors supply chains are becoming increasingly strained as the industry continues to grow
and therefore increases the potential for longer lead in periods, and increased inflation.
Building in Germany is traditionally more expensive than a majority of other European countries.
It is worth noting that professional advice in Germany is expensive and can range from 18%-22%.
Hub leader
ALEX VON ERDELY
Covers
UK AND NORDICS
In Denmark fit-out costs are higher averaging at €137 per sq ft in 10-12 weeks.
Medium specification Cat B costs in Germany range from €113-126 per sq ft depending on
location. Expected programme within four focus areas of Germany is consistent at eight-10 weeks.
Inflation prediction within Germany sits at a low 1%, on par with countries such as Holland,
Belgium and Croatia.
Covers
GERMANY
The Nordic markets tend to be Landlord driven and hence the fit-out presented would be carried
out by the landlord’s contractor with the client employing a Project Manager to document the
employers requirements, and to monitor programme and quality during the delivery phase.
Consultant fee agreements tend to be time based with a reluctance to move towards lump sum
fees – this is particularly the case in Sweden and Norway.
Czech Republic and Slovakia saw economic activity stall – albeit to lesser degrees – last year, but
are expected to see an upturn in 2014. The Czech Republic is forecast to rebound, with exports of
industrial output driving forward, and consumer confidence retuning to boost domestic demand.
In Slovakia, the nascent recovery from 2013 is expected to continue with stronger growth this year
driven by a pickup in trade and private consumption. The Czech office market is currently a tenant
favourable market, with vacancy rates high, even for modern stock. There is also a plentiful supply
pipeline in some of the major markets. The Bratislava market is also favourable to occupiers, with
only small new stock added and rising vacancy.
Ireland too has seen a sharp recovery that appears to be gaining pace, with export performance
helped by the improvement in the UK. Rents in both London and, in particular, Dublin have seen
significant uplift with further growth expected. For context, the Irish economy is still around 10%
smaller than its pre-crisis peak so still has a fair amount of ground to make up.
In Ireland the commercial office fit-out market is experiencing positive activity compared to other
construction sectors which are only just starting to show some signs of a recovery. Generally
procurement is mainly traditional with an element of design and build typically using the “The RIAI
Articles of Agreement 2012 Editions” form of contract (Yellow with Quantities and Blue without
Quantities). This project depending on the client’s requirements would take 10-12 weeks.
Fit-out costs in Ireland range from €58-€103 per sq ft with inflation predicted as 3-5%.
CAT B mid level average costs between the two countries are relatively similar and range between
€58 -€62 per sq ft.
Hub leader
DAVID MCCONNELL
Covers
IRELAND
38
FIT-OUT COST GUIDE | CBRE
Hub leader
JOSEF HRUSKA
Inflation predictions are consistent between the two locations at 1-2%.
Covers
CZECH REPUBLIC
& SLOVAKIA
FIT-OUT COST GUIDE | CBRE
39
SWITZERLAND & FRANCE
PARTNERS
Recent readings on the Swiss economy show a distinctly mixed picture. While generally solid
in comparison with many other Western European countries, weak capital investment and
disappointing recent private consumption figures have contrasted with strong growth in incomes
and declining unemployment. Short-term growth expectations have been downgraded slightly, but
the medium-term picture remains favourable. Office leasing activity has strengthened recently,
driven by consolidation and cost-reduction, causing an increase in vacancy. Occupier choice
continues to look plentiful in the short-term although markets will tighten further out.
To ensure we meet the current and future needs of our clients, we have partnerships
with many global providers, including architects, engineers, IT specialists and furniture
suppliers. The benefits of our fusion partnerships include faster procurement; preagreed terms and conditions allowing immediate appointment; ability to all offer our
clients pricing and discounts normally only offered to larger client organisations.
Similarly to 2013, an over-heated construction market in Zurich and Geneva has meant continued
rising costs, with our experience suggesting that fit-out in Switzerland is one of the most costly in
Europe. Demand for quality contractors is continually outstripping the supply, and as a result prices
have steadily increased.
Labour restrictions and a more regulated market mean there is less scope for the use of cheaper
labour from neighbouring countries. CAT B mid level fit-out costs would be €131 per sq ft.
CBRE is under no obligation to work with our fusion partners and full transparency in the selection of contractors and suppliers is guaranteed
Hub leader
RENAUD VINCENDON
Covers
SWITZERLAND
The French economy has seen modest GDP growth for the past two years, growing by 0.4% in
2012 and 2013. Severe fiscal consolidation and high unemployment have impacted on domestic
demand, while a loss of competitiveness means export growth has slowed compared to Germany
and Spain. The outlook for 2014 is little better, with GDP forecast to grow by 0.8%. As a result,
real estate activity has been subdued. Occupiers’ confidence has been lacking, and this has been
reflected by subdued take-up in the major office markets. Demand has been driven by occupiers
consolidating space, of which some instances have been in the pipeline for several months. Supply
remains tight, which has resulted in rents remaining stable, but tenants are offered high incentives
to sign a lease.
Hub leader
MARC SIMON
Covers
FRANCE
40
FIT-OUT COST GUIDE | CBRE
CAT B mid level average cost would be €132 per sq ft. Similarly to 2013, the France construction
market is similar in price to Germany. The time taken to deliver a project is typically 10 weeks.
Inflation predictions sits at a relatively stable 1-2%.
ABOUT GENSLER
Gensler is a leading global architecture,
interiors, planning, and strategic consulting firm
that partners with companies and institutions to
achieve measurable results through the use of
design. For over 45 years, Gensler has been a
pioneer in creating great places that enhance
the quality of work and life. Founded in San
Francisco in 1965, today Gensler employs
more than 3,500 professionals in 46 cities
around the globe. The firm has over 2,145
active clients in virtually every industry and
delivers projects at every scale.
Everything we do is informed by the plans and
strategies of our clients. Every project is part of
an ongoing relationship that has these larger
interests in mind, and our ability to propel our
clients forward is how we measure our own
success. This is why we’re organised to be as
effective globally as locally. When it comes to
mobilising talent and expertise, we are one firm,
whatever the location. In this respect, our size
and reach make a difference.
Our mission is to leverage our firm’s creativity,
knowledge and global reach so that our clients
can gain every competitive advantage from the
innovative design solutions we deliver.
MATT JACKSON
Design Director
+44 (0)20 7073 9600
matt_jackson@gensler.com
ABOUT HAWORTH
Haworth is a world market leader in the design
and production of office worlds that can be
easily integrated in all environments. The
owner-managed company has its head office
in Holland, Michigan, USA and it is from here
that Haworth has developed into a global
player over the last 25 years. The company
is represented in more than 120 countries
and maintains development and production
facilities in China, France, Germany, Portugal,
Switzerland, India and the USA.
All Haworth products are characterised by
global trend developments and reflect a
constant endeavour to continue developing.
Haworth has created a company culture that
stands for absolute customer satisfaction,
technical advancement, and innovative design
as well as living a clear sense of responsibility
for the environment. Haworth products can
be constantly adapted to perfectly suit the
perpetually changing external conditions in
which they are used; the customer can therefore
be sure that the products will enjoy long-term
use.
ABOUT WSP
WSP is one of the world’s leading professional
services firms, providing services in the built
and natural environment. With over17,000
colleagues located in more than 300 offices
worldwide, our global reach enables us to offer
the latest thinking combined with exemplary
client service, whatever and wherever the
challenge.
Our work in the office and mixed-use sectors
includes new build and refurbishment projects,
high-rise developments and business parks. We
have recently been responsible for designing
and coordinating fit-out projects for “blue-chip”
clients in the financial, creative, technological
and legal sectors in locations as diverse as
Canary Wharf, City of London, La DefenseParis, Sydney, New York, Hong Kong City,
Kuwait City and Dubai.
KEVIN SMITH
Director
+44 (0)1223 558 050
kevin.smith@wsp.com
PATRICK ABRAMOFF
Director Global Accounts Europe
+49 1622781162
patrick.abramoff@haworth.com
FIT-OUT COST GUIDE | CBRE
41
PLANNING YOUR OWN BUDGET
The ‘Ready Reckoner’ provides
a good indicator of construction
costs across EMEA, however the
best source of information is your
company’s own internal data
on historic fit-out projects. This
provides the detailed information
on the true cost to build to a client
specific standard. When a present
day benchmark is established, it
is possible to use the information
gathered to extrapolate the likely
costs to build the same again across
EMEA. This radar graph shows the
multiplier relative to the cost of
building in London.
Construction and professional fees
radar presented at relative cost to
London.
WARNING
This multiplier is for estimating construction
costs and professional fees. Items that
would need to be purchased directly by
your company such as furniture, AV, IT and
security, should be calculated differently.
Many of these items are imported into
country and cost is linked to import duties.
For example in Egypt the construction cost
may be similar but duties, customs and
handling costs can add 60% on the top of
the goods imported.
HOW TO BUILD YOUR BUDGET
COST RADAR - RELATIVE TO LONDON
ABUJA
ACCRA LUANDA 1.80
PARIS
1.42 1.52
1.38
GENEVE
ZURICH
HELSINK
MUNICH
1.25
FRANKFURT
1.25
BELGRADE
ATHENS
PRAGUE
BRATISLAVA
ASTANA
BARCELONA
0.73
0
MADRID
0.74
1.18
BERLIN
0.76
1.03
1.02
BEIRUT
RIGA
0.75
1.05
VIENNA
1.01
1.00
DUBAI
0.99
DOHA
LONDON
0.97
0.94
0.92 0.92
0.87
0.91 0.91 0.89
0.86
TEL AVIV
0.78
0.80
0.80
0.83
0.84
0.86
RIYADH
ABU DHABI
BRUSSELS
BUDAPEST
ROME
CAIRO
KUWAIT
City
Select city
2. Select appropriate region on CAT B and professional fees Ready Reckoner –
page 16-17
Furniture
Select furniture option (high, medium or
low) and apply percentage add ons
3. Security and AV – pages 26-27 – use the cost per sq ft, apply taxes furniture
Ready Reckoner – page 21
CAT B and fees
Select CAT B & FEES option
(high, medium or low)
Security and AV
Apply import taxes from furniture
Ready Reakoner to rates shown. Adjust
accordingly to reflect requirements
GLASGOW
MUSCAT
JOHANNESBURG
4. Reinstatement – pages 24-25 if this is required as part of a project budget/
business case – apply costs per sqft to office area. Apply location factor
from the cost radar and convert to the relevant currency
5. Apply contingency
FIT-OUT COST GUIDE | CBRE
Put your cost here €
ABERDEEN
Put your cost here €
Put your cost here €
Total €
Subtotal € per sq ft or € per m2
State area
Project area – sq ft or m
Revise total €
Total
Area x sub total
Apply contingency
Add a percentage
Final total
Budget total
MANCHESTER
AMSTERDAM
MOSCOW
Reinstatement
42
INPUT
Insert city
MARRAKESH
DUBLIN
MILAN
ACTION
ZAGREB
0.56
0.56 0.58
0.61
0.80 0.54
0.62
0.48
0.62
0.60
0.65
0.67
0.40
0.71
0.72
0.20
0.73
1.26
ELEMENT
1. Select appropriate region on furniture Ready Reckoner – page 21
1.00
1.35
1.34
STUTTGART
WARSAW
ISTANBUL
1.20
1.35
1.31
OSLO
LISBON
1.40
1.35
NAIROBI
AVERAGE
BELFAST BUCHAREST
1.77
1.60
1.35
COPENHAGEN
SOFIA
Project budgets can be built on some, or all, of the elements featured in this
guide. The following is a step by step guide to support the budget development
an overall cost per sq m/ sq ft.
BUDGET MATRIX
Revise total €
Include if applicable
Put your cost here €
Select rate and apply to project area
KEY CONTACTS
REGIONS
IAN SMITH
t: +44 (0)20 7182 3256
e: ian.smith@cbre.com
LEYRE ECHEVARRÍA ICAZA
t: +34 91 598 19 00
e: leyre.echevarria@cbre.com
MARCELLO PANIZZUTTI
t: +39 02 303 777 93
e: marcello.panizzutti@cbre.com
JONATHAN STEER
t: +4822 544 8068
e: jonathan.steer@cbre.com
IAN CHANDLER
t: +44 (0)20 7182 3787
e: ian.chandler@cbre.com
JOSEF HRUSKA
t: +420 246 085 580
e: josef.hruska@cbre.com
RENAUD VINCENDON
t: +41 22 322 80 54
e: renaud.vincendon@cbre.com
MARC SIMON
t: +33 1 40 41 58 13
e: marc.simon@cbre.fr
SIMON BRAITHWAITE
t: +44 (0)20 7182 3171
e: simon.braithwaite@cbre.com
DAVID MCCONNELL
t: +353 1 618 5500
e: david.mcconnell@cbre.com
REINSTATEMENT
GEERT WILMINK
t: +31 (0)20 204 41 81
e: geert.wilmink@cbre.com
EMMA ANDERSON
t: +44 (0)20 7182 2445
e: emma.anderson@cbre.com
CHRIS MADDISON
t: +44 (0)20 7182 3412
e: chris.maddison@cbre.com
MARK TATLOW
t: +44 (0)20 7182 3608
e: mark.tatlow@cbre.com
KEVIN GADSBY
t: +971 4 4377200
e: kevin.gadsby@cbre.com
For questions on our cost database/
commercial approach:
PAVEL YAKIMCHUK
t: +7 903 112 55 26
e: pavel.yakimchuk@cbre.com
PENNY CROMPTON
Head of Commercial Management
t: +44 (0)20 7182 3754
e: penny.crompton@cbre.com
ALEXANDER V. ERDÉLY
t: +49 211 86066 133
e: alexander.erdely@cbre.com
PERI YOUNG
t: +44 (0)20 3257 6714
e: peri.young@cbre.com
DISCLAIMER 2014 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.
A
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