Prime office costs

"Our Market Makers report series analyses the top 10 largest office deals by transacted space, across 35 global markets"

"Modest net effective cost growth this quarter closes out the year as 2025 looks to see continued demand and strength in prime office markets globally"

"Tide is turning for European office investment as debt becomes accretive to returns"

"Global prime office costs have seen an increase of 3.1% from last year as demand for prime office space remains high, while densification trends vary regionally"

"Build costs increasing in line with inflation"

"European office yields remain stable at 4.9%, as pricing expectations begin to align"

"Prime office rents in major cities around the world have risen 3% in the past year, while significant premiums have emerged for top-tier space over the wider Grade A market"

"Our analysis of the top 10 prime office occupier deals by size across global cities shows that expansions and renewals still dominate activity, in spite of rising costs and broader economic uncertainty. Tech remained the top industry by deal volume, followed by finance."

"Concessions and inducements hold sway"

"In the post-pandemic era, best-in-class office space is vital, attracting talent, fostering community, and enhancing well-being. Limited prime stock and a lack of development may impact take-up levels going forward, creating investment opportunities in refurbishing secondary assets for evolving business needs"