Hybrid work, tech integration and sustainability are driving office fit-out costs in 2024, finds CBRE guide
May 6, 2024 — CBRE’s new Global Office Fit-Out Cost Guide shows that the office fit-out landscape continues to evolve, driven by a confluence of economic, technological and societal shifts. It also reviews the impact on office fit-outs of several key trends, including technology and innovation, workplace evolution, sustainability and investment patterns.
We expect a modest recovery in the leasing market this year, driven by catch-up leasing activity and better understanding of corporate space needs to accommodate new work strategies. This is expected to involve significant upgrades in portfolio quality, aligning real estate more closely with office attendance and talent attraction strategies.
Nicolas McNamara, director, Project Management Occupier Consulting at CBRE
CBRE produces the Global Office Fit-Out Cost Guide annually to examine how current trends are reshaping cost dynamics in key locations across the Americas, Asia-Pacific and Europe, the Middle East and Africa regions.
Organizations are re-thinking their workplace design in light of the increase in hybrid work environments, technological integration, sustainability and well-being, adaptive and resilient space requirements, cost rationalization and branding considerations. Their new approach reflects a shift in the way office space is perceived — from mere places of work to hubs of innovation, culture and well-being.
Sustainability is increasingly top of mind for organizations, as they strive to achieve Net Zero commitments. Projects, such as building retrofits and refurbishments, can help organizations meet their commitments and accelerate the decarbonization of the economy.
Our Global Fit-Out Guide can help these organizations identify adaptable and reusable design principles, select sustainable construction materials and access renewable energy sources – these are key building blocks toward achieving green and well-being building certifications. CBRE’s integrated approach will demystify the decarbonization challenge: from strategy to technical execution to project management capabilities to more efficient space occupancy regimes.
John Belbusti, CBRE global president for Electric Vehicle Charging and Project Management
The report indicates that integration of renewable energy and efficient systems such as heating, ventilation and air-conditioning (HVAC) and smart lighting is essential for environmental stewardship. Compliance with frameworks like LEED, WELL or Fitwel is becoming a norm, and smart technologies in office space can contribute significantly to sustainability goals. The use of Internet of Things (IoT) devices for monitoring can further enhance efficiency and reduce carbon footprints.
Find out more in the 2023-2024 Global Office Fit-Out Cost Guide.