Office Fit Out Cost Guide / Greater China 2024
Against a volatile economic backdrop, the Asia Pacific office market remains steadfast and continues to grow, with a broadly positive outlook. The need to innovate and evolve has not diminished. Companies are striving to meet their Environmental, Social, and Governance (ESG) targets, and new modes of working embrace flexibility, collaboration, and innovation, while fostering diversity and inclusion. The office is central to many of these transformative processes, with an increasing focus on building quality, fit out design, and raw material selection.
This year’s Guide takes a closer look at 33 key cities across the region, as well as:
- Key considerations for a best-in-class office fit out: creating office value, inclusive and sustainable design and partnership with landlords
- Cost estimates of three different styles of fit outs to cater to the post-pandemic workforce
- A comprehensive fit out cost breakdown that includes furniture, mechanical and electrical works, construction works, IT, audio visual and miscellaneous costs
- Three different levels of reinstatement costs, together with average retrofit costs
Office Fit Out Trends in Greater China
- Cities in Greater China covered: Beijing, Guangzhou, Hong Kong, Shanghai, Shenzhen, and Taipei.
- Fit out costs vary significantly, with Hong Kong at the high end ($147 USD/sqft) and Guangzhou at the lower end ($103 USD/sqft).
- Retrofit costs also show variation, from $39 USD/sqft in Beijing to $65 USD/sqft in Taipei.
- costs range widely, with the lowest in Guangzhou ($10 USD/sqft) and the highest in Hong Kong ($38 USD/sqft).
- The variation in costs across cities reflects differing market conditions and local demand for high-quality office spaces.
- The higher costs in cities like Hong Kong and Taipei indicate a premium on space and a focus on high-end fit outs.
- There's a growing emphasis on sustainability and smart office technologies across Greater China, mirroring global trends.
- Companies in Greater China are increasingly investing in fit outs that enhance employee wellbeing and foster collaboration.
What is an office fit out?
An office fit out refers to the process of making an interior space suitable for occupation. It involves the installation of various elements such as furniture, mechanical and electrical systems, and other miscellaneous items to create a functional and comfortable workspace.
Office Fit Out vs Office Refresh: What’s the Difference?
An office refresh and an office fit out address the improvement of workplace environments but differ significantly in scope and execution. An "office refresh" is a less extensive, more cosmetic update aimed at revitalizing an existing space. It typically involves aesthetic enhancements such as painting, updating furniture, or improving lighting, without making structural changes. The goal is to modernize the workspace, improve functionality, or boost employee morale with minimal disruption and cost.
In contrast, an "office fit out" refers to preparing a commercial interior space for occupation, especially after a significant change like relocation or a major renovation. It can range from installing basic infrastructure (flooring, ceilings, electrical systems) to incorporating comprehensive design elements (furniture, technology, brand-specific decor). Fit outs are more complex, time-consuming, and costly, often involving structural modifications to align the space with specific operational requirements, brand identity, and sustainability goals.
Factors Impacting Office Refurbishment Costs
- The size and location of your office space: The larger and more central your office space is, the higher the cost of refurbishment will be. This is because you will need more materials, labour and time to complete the project. You may also need to pay more for permits, fees and taxes depending on your local regulations and requirements.
- The scope and complexity of your project: The more extensive and intricate your project is, the higher the cost of refurbishment will be. This is because you will need more specialised skills, equipment and expertise to execute the project. You may also need to hire more contractors, consultants and suppliers to assist you with the project.
- The quality and quantity of your materials and finishes: The higher the quality and quantity of your materials and finishes are, the higher the cost of refurbishment will be. This is because you will need to pay more for premium products, brands and services that offer durability, functionality and aesthetics. You may also need to pay more for customisation, installation and maintenance of your materials and finishes.
- The timeline and schedule of your project: The shorter and more urgent your project is, the higher the cost of refurbishment will be. This is because you will need to pay more for overtime, rush orders and expedited deliveries to meet your deadlines. You may also need to pay more for disruption, relocation and contingency costs to minimise the impact of your project on your business operations.
Benefits of an Office Fit Out
- Enhances Employee Productivity: An office that is designed to meet the needs of its users can significantly boost productivity. By considering environmental psychology, neurodiversity, and personality types, a fit out ensures that employees have spaces that allow them to be their most productive.
- Fosters Collaboration and Socialization: The office environment plays a crucial role in facilitating human connection. A well-designed fit out provides various spaces for collaboration and socialization, which are essential for innovation and team cohesion.
- Supports Individual Needs: Recognizing and accommodating individual differences in how space is used enhances the overall workplace experience. This tailored approach ensures all employees feel included and able to work in a way that suits them best.
- Contributes to Corporate Sustainability Goals: Fit out design can significantly impact a company's sustainability and inclusiveness objectives. By aiming for accreditations like LEED, WELL, and Fitwell, businesses can ensure their office spaces meet high standards of sustainability and performance.
- Attracts and Retains Talent: A well-designed office can enhance the workplace experience, making it more appealing for employees to come to work and encouraging them to return. This aspect is critical for talent attraction and retention, especially in competitive industries.
- Optimizes Real Estate Value: Selecting the right building in the right location with a strategic fit out design can create value by aligning with cost, talent, and environmental, social, and governance (ESG) drivers. This ensures a sustainable and profitable use of space.
- Encourages Partnership for Sustainability: Collaboration between corporate occupiers and landlords in the fit out process can help achieve broader sustainability goals and create social value, contributing to a positive impact beyond the company itself.
- Improves Employee Wellbeing: Office design that focuses on wellbeing can lead to healthier, happier employees. This includes creating spaces that support the separation of personal and work lives and providing access to tools and resources for focused work.
- Boosts Company Image: A modern and thoughtfully designed office reflects positively on a company's brand. It shows commitment to employee wellbeing, sustainability, and innovation, enhancing the company's reputation among clients and potential employees alike.
FAQs
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At Cushman & Wakefield, we offer a range of services to help you plan and execute your office fit out project. Our team of experts can provide guidance on Project & Occupier Services, Logistics & Industrial Property Services and Capital Markets. We have a strong reputation in the Asia Pacific region and are committed to helping our clients achieve their goals.
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