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Competition to Win Talent Drives Prime Occupancy Costs to New Heights

2019 Global Prime Office Occupancy Costs Report


Report Summary



Occupiers continue to seek higher-quality space in markets with robust infrastructure and social amenities, despite weaker global economic growth in Q1 2019 and worries about a U.S./China trade war. The race to attract talent by securing the most desirable work environments remains intense. Combined with limited supply and moderate construction pipelines in most cities, prime office occupancy costs have risen to new heights.

Prime office occupancy costs increased by 3.6% globally for the year ending Q1 2019, significantly higher than the 2.4% rate of a year ago and CBRE’s forecast growth rate of 2.0%. All regions had increased growth rates in prime office occupancy costs from the prior year. APAC’s growth rate nearly doubled to 3.3%, while EMEA had a healthy increase to 3.5% and the Americas increased to 3.7%. Occupancy costs across the world are seemingly moving in unison, with only a few markets seeing slight falls.

Related Research

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February 8, 2019
While a degree of uncertainty clouds the economic outlook at the start of 2019, we believe that growth and confidence will pick up throughout the year. Momentum in the consumer and business sectors is strong, China is already deploying extra fiscal stimulus to boost its economy, and we expect growth to pick up in Europe.
February 8, 2019

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January 14, 2019
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Interested in bringing more flexibility to your real estate strategy? Visit CBRE’s Agile Real Estate Hub.

For More Information, Please Contact

Richard Barkham, Ph.D.
Global Chief Economist, Head of Global Research & Head of Americas Research
+1 617 912 5215
Dr. Henry Chin
Global Head of Investor Thought Leadership
& Head of Research, APAC
+852 2820 8160
+852 2810 0830
Spencer Levy
Global Chief Client Officer and Senior Economic Advisor
+1 617 912 5236
Jos Tromp
Head of Research Continental Europe| Head of Data Intelligence Continental Europe
+31 (0)20 626 26 91
+31 631 96 94 38
Cynthia Chan
Asia Pacific
+852 2820 2839
+852 2810 0830
Richard Holberton
Head of Office Occupier Research EMEA
+44 20 7182 3348
Julie Whelan
Global Head of Occupier Thought Leadership
+1 617 912 5229
Travis Deese
Associate Director, Occupier Research
+1 404 441 4239

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