Persistent inflation, tight labour markets, and ongoing supply chain delays have increased average fit-out costs across Asia Pacific, according to Cushman & Wakefield’s 2023 Asia Pacific Office Fit Out Cost Guide, but major occupiers are absorbing the higher spend in their quest to improve return-to-office rates. While fit-out costs were up across the region by an average of 18 percent in local currency (7 percent in US dollar terms), there were early signs of easing pressure.
“Cost is clearly a high priority for occupiers, as evidenced by the continued 0.8% q-o-q increase in CBD Grade A office rents in Q1 2023. However, we have observed positive attitudes from our clients as we assist them in focusing their design and capital expenditure on creating people and client-focused areas that activate spaces for hybrid ways of work” said Grant Carter, Head of Project & Development Services Singapore at Cushman & Wakefield.
| FIT OUT COST(USD per SQUARE FOOT) | |||
| CITY | BASICHYBRID | COLLABORATIVE HYBRID | ADVANCED HYBRID |
| JAKARTA | 51 | 72 | 102 |
| KUALA LUMPUR | 63 | 83 | 137 |
| MANILA | 70 | 92 | 146 |
| SINGAPORE | 86 | 134 | 205 |
| BANGKOK | 54 | 85 | 147 |
| HANOI | 43 | 65 | 96 |
| HO CHI MINH CITY | 41 | 63 | 94 |
Creating spaces that are activated for hybrid ways of work
Occupiers are still trying to fully comprehend the impacts of new flexible working practices on their space requirements as well as fit-out design to boost collaboration and innovation while also providing space for individual-focused work. “With a flight to quality and user experience, best-in-class fit-outs now need to simultaneously consider several key factors: workplace strategy and change implementation, technology, sustainability and ESG factors to ensure that their spaces are optimized for employee experience.” he added.
Source : RETALK
