ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE

 
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
ASIA
PACIFIC
FIT-OUT
COST
GUIDE
          Occupier Projects 2016/17 Edition
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
FOREWORD
                                                             What is the holistic cost over the   The evolution of the Asia Pacific Cost
                                                             lifecycle of the corporate office?   Guide into a more holistic guide was a
                                                                                                  natural progression from the “how much
                                                                                                  is it going to cost?” topic covered in 2014,
                                                                                                  to the “what solution will provide the best
                                                                                                  value?” focus point in 2015.

                    Martin Woods
                                                                                                  To continue providing our clients with the best
                    Senior Managing Director, Asia Pacific
                                                                                                  integrated service, in the 2016 edition we
                    CBRE Project Management
                                                                                                  have addressed commercial office lifecycle
                    Global Leadership & Platform
                                                                                                  costing through the modeling and regional
                                                                                                  comparisons of key common costs across
                                                                                                  capital expenses, operating expenses and
                                                                                                  leasing for Grade A buildings. Again, all the
                                                                                                  indices and tables provided are the result
                                                                                                  of analysis of empirical data from CBRE
                                                                                                  assignments covering the three major cost
                                                                                                  elements.

                                                                                                  As always, we are looking at ways to further
                                                                                                  improve this guide and provide you, the client,
                                                                                                  with the most relevant data to guide your real
                                                                                                  estate decisions so please let us have your
                                                                                                  feedback.

CBRE TOKYO OFFICE
                                                                                                                   CBRE PROJECT MANAGEMENT          1
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
CONTENTS
                                                                                                                                                                                                                             INTRODUCTION                                         5

                                                                                                                                                                                                                             2016 APAC FIT-OUT COST INDEX                         7

                                                                                                                                                                                                                             FIT-OUT COST BENCHMARKING TABLE                      8

                                                                                                                                                                                                                             FIT-OUT COST TREND FROM 2014 TO 2016                11

                                                                                                                                                                                                                             LEASING                                             14

                                                                                                                                                                                                                             TYPICAL LEASE PERIOD                                16

                                                                                                                                                                                                                             FACILITIES MANAGEMENT COST                          18

                                                                                                                                                                                                                             NET PRESENT LIFECYCLE COSTING                       22

                                                                                                                                                                                                                             ACTIVITY-BASED WORKING: FM COST CONSIDERATIONS      28

                                                                                                                                                                                                                             REGIONAL FIT-OUT COST ANALYSIS                      30

                                                                                                                                                                                                                             2016 GLOBAL FIT-OUT COST INDEX                      44

    Disclaimer: CBRE Ltd has taken every care in the preparation of this document. The sources of information used are believed to be accurate and reliable, but no guarantee of accuracy or completeness can be given.
    The cost estimation are intended to be guides only. Please contact our market leaders, provided within this document or available from our cbre.com website, who can provide an accurate cost estimate based on your
    specific requirements.

    Neither CBRE, nor any director, representative or employee of CBRE company, accepts liability for any direct or consequential loss arising from the use of this document. The information and opinions contained in
    this document are subject to change without notice. No part or parts of this document may be stored in a retrieval system or reproduced or transmitted in reprographics, recording or otherwise, now known or to be
    devised without prior consent from CBRE.

2   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                           CBRE PROJECT MANAGEMENT   3
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
MACRO-ECONOMIC FACTORS                                                                                                                                                                                                        INTRODUCTION
    Driving Dramatic Shifts                                                                                                                                                                                                       Lifecycle costing guides businesses
                                                                                                                                                                                                                                                                                                                       2015
    Currency Volatility                                                                                                                                                                              Inflation
                                                                                                                                                                                                                                  to make the most informed                             2014
                                                                                                                                                                                                                                                                                                                 Fit-out, Leasing
                                                                                                                                                                                                                                                                                                                                                               2016
                                                                                                                                                                                                                                  decision for their Real Estate                    Fit-out Cost                                                         Lifecycle Costing
                                                                                                                                                                                                                                                                                                                 & ABW options
          2015-2017                                                                                                                                                                                                               investment strategy
          2013-2015
                                                                                                                                                                                                                                                                        As part of CBRE’s commitment to delivering          Guide Assumptions
                                                                                          -5.1%                                                                                              4.05%                                                                      advantage for all of our clients, we are
                                                                                                                                                Indonesia                                                                                                                                                                   • The commercial tower is a Grade A office building within the
     -29%                                                                                                                                                                                                6.58%                                                          delighted to present the third installment of
                                                                                                                                                                                                                                                                                                                              Central Business District with the following characteristics:
                                                                                                -5%                                                                               2.01%                                                                                 CBRE’s Asia Pacific Cost Guide. The 2016
                                                                                                                                                  Australia                                                                                                                                                                   - A modern, flexible, column-free footprint of at least 15,000
     -29%                                                                                                                                                                         2.02%                                                                                 edition provides industry professionals with a           square feet
                                                                                                                                                                                                                                                                        point of reference for capital costs, operational     - Total floor area of at least 300,000 square feet
                                                                                                                                   1.7%                Japan           0.25%
                    -24%                                                                                                                                                    1.78%                                                                                       expenditure, and leasing costs to make more           - Sheltered parking GFA ratio of 1/2000
                                                                                                                                                                                                                                                                        informed decisions on real estate strategy.           - Accessibility to public transport
                                                                  -11.1%                                                                          Malaysia                            2.74%                                                                                                                                 • Commercial office assumptions:
                     -24%                                                                                                                                                             2.66%                                                                             CBRE has gathered data and solicited feedback
                                                                                                                                                                                                                                                                                                                              - Office size between 25,000 to 30,000 square feet.
                                                                                                                                                                                                                                                                        from a cross-section of clients to derive
                                                                                                           -0.8%                                                            0.87%                                                                                                                                             - Density range of 1 workstation to 90 to 110 square feet
                                                                                                                                           New Zealand                                                                                                                  information that will affect today’s commercial
                                              -17%                                                                                                                          0.76%                                                                                                                                             - Fixed 1-1 desk ratio
                                                                                                                                                                                                                                                                        real estate decisions                               • Fit-out costs include:
                                                                                     -6.5%                                                        Thailand                  1.29%                                                                                                                                             - Consultants fees
                                                                    -11%                                                                                                  0.49%
                                                                                                                                                                                                                                                                        To further develop the APAC Fit-Out Cost Guide        - Builders works
                                                                                                   -2.7%                                        Singapore                 0.49%                                                                                         we have tried to take a broader view which            - M&E works
                                                                          -10%                                                                                           0.25%                                                                                                                                                - Standard office FF&E
                                                                                                                                                                                                                                                                        has enabled us to assess the cost of the facility
                                                                                            -4.5%                                                                                                                                                                                                                             - Structured cabling
                                                                                                                                                         India                                      5.37%                                                               through to the end of its lifecycle. We have        • Exclusions:
                                                                           -10%                                                                                                                       5.94%                                                             termed this Net Present Lifecycle Costing and         - Telephony/IT/AV/Security equipment
                                                                                                   -2.6%                                       Philippines                            2.67%                                                                             used the data obtained to create a Net Present        - Consideration for building abnormalities or variances such as
                                                                                      -7%                                                                                             2.82%                                                                             Lifecycle Cost Index.                                    onerous landlord requirements
                                                                                            -4.3%                                                                           1.25%
                                                                                     -7%
                                                                                                                                                     Taiwan
                                                                                                                                                                          0.44%
                                                                                                                                                                                                                                                                                                                            Additional Guide Assumptions
                                                                                                                                                                                                                                                                                                                            for FM Costs
                                                                                                -3.6%                                              Vietnam                             2.85%
                                                                                                 -4%                                                                                   2.82%                                                                                                                                • Facility Management costs include:
                                                                                                                                                                                                                                                                                                                              - Cleaning
                                                                                       -6.4%                                                South Korea                       1.47%
                                                                                                     -3%                                                                     1.00%                                                                                                                                            - Mechanical & Electrical Maintenance
                                                                                                                                                                                                                                                                                                                              - Security Services
                                                                                       -6.2%                                                           China                       2.26%                                                                                                                                      - Utilities
                                                                                                         -2%                                                                     1.73%                                                                                                                                        - Pest control
                                                                                                             0.0%                                                                   2.30%                                                                                                                                     - Mailroom
                                                                                                                                              Hong Kong
    Source: CBRE Asia Pacific Research Jun 2016                                                                              0%                                                         3.81%                                                                                                                                 - Reception
                                                                                                                                                                                                                                                                                                                              - Landscaping
                                                                                                                                                                                                                                                                                                                              - Confidential waste disposal
    As currencies in APAC generally continue to slide against the USD at rates at least equal to, or greater than, domestic inflation, a pattern of falling cost would appear when reported in USD in all locations except Hong                                         Zac Zdravev                                         • Exclusions:
    Kong (see Cost Trend, page 11). The cost of construction in local currencies however are showing gradual increase and need to be considered against revenue generated in the local market when making commercial office                                             Senior Director, Asia Pacific                         - Dedicated Chiller and Generator maintenance
    investment decisions. Pipeline projects should be identified considering lease expiry and changes in headcount, as well as macro and micro economic factors.                                                                                                        CBRE Project Management                               - Property Tax
                                                                                                                                                                                                                                                                        Global Leadership & Platform                          - Management Fee

4   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                                                                                                 CBRE PROJECT MANAGEMENT                     5
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
HISTORIC FIT-OUT COST INDEX                                                                                                                                       2016 APAC FIT-OUT COST INDEX
                                                                                                                                                                                                                                                                         Hong Kong
                                               Tokyo
                                                            Sydney                                                                                                                                                                         Hyderabad                                                    Seoul
                        Hyderabad               1.27      1.23                                                                                                                                                                                                                      1.27
                                                                        Seoul                                                                                                                                            Bangalore                                                                   1.20                 Sydney
                 Bangalore
                                                                  1.22                                 Despite the continued decline of JPY, award of                                                                                                                                                                1.18
                                         0.49
                                                                                                       the 2020 Tokyo Olympics buoyed the market and
            Mumbai                0.56                                          Hong Kong              inspired confidence in the construction industry.                                                      Mumbai                                                                                                                      Tokyo
                                                                        1.12
                              0.60                                                                                                                                                                                                                                  0.52                                                           1.17
                                                                                                                                                                                                                                                        0.56
                                                                                                       Riding the high demand for commodities from
          HCMC           0.76                                             1.11 Singapore               China, the AUD continued to perform well                                                                                               0.62
                                                                                                                                                                                                     Jakarta                                                                                                                                        Perth
                                                                                                                                                                                                                                                                                                                                            1.12
                                                                                                       against the USD.
                         0.87                                                                                                                                                                                                    0.77
                                                                        1.07
             Taipei                                                             Guangzhou
                              0.88
                                                                 1.04                                                                                                                              HCMC                                                                                                                                       1.06       Auckland
                                                                                                                                                                                                                             0.78
    2014            Manila             0.98              1.00           Beijing
    Cost Index                                  1.00
                             Jakarta                        Kuala Lumpur
                                              Shanghai                                                                                                                                                                       0.82
                                                                                                                                                                                                                                                                                                                                            1.04
                                                                                                                                                                                                    Taipei                                                                                                                                             Beijing
                                                                                                                 Seoul
                                                                                              Hyderabad           1.21        Hong Kong
                                                                                                                                                                                                                                  0.82
                                                                                                                           1.13                                                                                                                                                                                                    1.00
                                                                                    Bangalore                                             Beijing
                                                                                                                                                                                                       Bangkok                                                                                                                                  Shanghai
                                                                                                                                  1.02                                                                                                      0.83
                                                                                  Mumbai                       0.49                              Tokyo                                                                                                                                                                  0.98
        JPY hit a five-year low in June 2015.                                                           0.54                             1.01
                                                                                                                                                                                                                                                        0.86
                                                                                                   0.59                                                                                                                Manila                                                                                                      Melbourne
                                                                                                                                                                                                                                                                                                         0.98
        AUD slide against the USD started in 2H                                 HCMC           0.75                                       1.01      Sydney                                                                                                             0.95             0.96
        2014 & continued to drop until end of 2015.                                                                                                                                                                         Kuala Lumpur                                                                         Singapore
                                                                                                0.75                                      1.00                                                                                                           Brisbane                            Guangzhou
                                                                                Jakarta                                                             Shanghai
                                                                                                 0.81
                                                                                                                                   0.98
                                                                                     Taipei             0.83                0.89             Guangzhou
                                                                                                               0.83 0.87                                              Apart from some notable exceptions in inflation rates, foreign exchange volatility is still the main factor driving the dramatic shifts in the Asia Pacific
                                                                                                                                                                      Index. The index data is generated through the use of CBRE’s Project Management platform used for projects across Asia Pacific.
                                                                                           Bangkok                                 Singapore
                                                                                                        Manila           Kuala Lumpur                         2015
                                                                                                                                                         Cost Index
                                                                                                                                                                      Disclaimer:
                                                                                                                                                                      This graph shows the capital expense multiplier for the design and construction of the same office project across Asia Pacific using Shanghai as the unit index. This index should be used as a guide only, for actual
                                                                                                                                                                      project budget estimates please contact the CBRE Project Management Division Lead in your city.

6   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                                                                                                CBRE PROJECT MANAGEMENT                     7
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
FIT-OUT COST
                               BENCHMARKING
                               TABLE

8   ASIA PACIFIC FIT-OUT COST GUIDE           CBRE PROJECT MANAGEMENT   99
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
FIT-OUT COST BENCHMARKING TABLE                                                                                                           FIT-OUT COST TREND FROM 2014 TO 2016
                                                                                                                                               The graph below represents a blended average for each location.
                                                                                     BASIC             MEDIUM       HIGH
                                                                                                                                               160
                                                                                                                               Reinstatement
              Region               Country                       City               US$/sq.ft          US$/sq.ft   US$/sq.ft
                                                                                                                                 US$/sq.ft                 North Asia                    Greater China                         Pacific                                     South East Asia                             South Asia
                                   South Korea                   Seoul                 91                   128       166           12
                                                                                                                                               140
             North Asia
                                     Japan                       Tokyo                 84                   126       168           44

                                                                 Beijing               75                   105       156           13
                                                                                                                                               120
                                      China                     Shanghai               71                   100       152           12

            Greater China                                      Guangzhou               65                   96        148           11

                                     Taiwan                      Taipei                65                   86        113           11         100
                                   Hong Kong                   Hong Kong               84                   125       200           23

                                                                 Sydney                85                   115       180           17
                                                                                                                                                80
                                                               Melbourne               73                   103       141           14
                                    Australia
               Pacific                                            Perth                78                   113       171           14

                                                                Brisbane               70                   100       135           14          60
                                   New Zealand                  Auckland               65                   114       163           15

                                   Philippines                   Manila                50                   89        129            9
                                                                                                                                                40
                                    Vietnam                      HCMC                  61                   84        105            3

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                                    Indonesia                    Jakarta               57                   81        110            5

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                                    Malaysia                  Kuala Lumpur             64                   87        125           14

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                                    Singapore                  Singapore               80                   109       127           14
                                                                                                                                                                                                                          2014            2015           2016
                                    Thailand                    Bangkok                46                   84        134           10

                                                                Mumbai                 47                   66        85             2               In Pacific, why the rebound in cost per square foot in 2016?                                                                               JESS SURMAN
             South Asia               India              Hyderabad/Kolkata/Pune        40                   55        70             2               1. Smaller leasing deals resulting in density changes and increasing services costs by unit of area.                  Director, CBRE Project Management
                                                         Bangalore/Chennai/Delhi       43                   60        78             2               2. Old stock - buildings requiring more CAPEX to perform the way the fit-outs require.                                            Perth, Western Australia

     Please note that the cost data only includes Consultancy fees, Builder Works, M&E works and Fixed                                                                              Various cost trends have formed following the analysis of empirical data
     Furniture and Equipment (FF&E) and should only serve as a guide reference across the region.                                                                                   gathered from completed projects managed by CBRE. Inflation, currency
     This is not meant to be a budget document and CBRE Project Management Division Leads in each                                                                                   volatility and unique in-location market conditions each had a different degree
     market should be approached to support on project specific budget estimates.
                                                                                                                                                                                    of impact on the fit-out rates.
     Typical reinstatement rates for offices may vary to different degrees depending on the reinstatement
     requirement.
                                                                                                                                                            Royston Toh
                                                                                                                                                            Senior Manager, Asia Pacific
                                                                                                                                                            CBRE Project Management
                                                                                                                                                            Global Leadership & Platform
10   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                                             CBRE PROJECT MANAGEMENT            11
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
PROJECT STANDARD MATRIX
                                                         PROJECT STANDARD                                                                          PROJECT STANDARD
                                  Description of items                      Basic   Medium   High                           Description of items                      Basic   Medium   High
      BASIC OFFICE FUNCTIONALITY                                                                    SYSTEM FURNITURE

      Elaborate Pantry and Breakout Areas                                                           Flexibility in Workspace Churn & Expansion
      Basic Pantry fit-out                                                                          Powerhoop as an Uninterrupted Footprint Division
      Very open office layout                                                                       Resolved Design & Seamless Connectivity
      M&E Redundancy                                                         N       N+1     2N     Simplicity with reduced kit-of-parts
      MEETING ROOMS                                                                                 Unified look and combined usage
      Integrated A/V and lighting control                                                           Cable trough and various cable outlet application
      Basic A/V                                                                                     TASK CHAIRS

      Projector & Audio/Telephone                                                                   Asymmetrical lumbar support system
      Tables and Chairs only                                                                        Pelvic support
      SECURITY                                                                                      4-D arms and seat pan adjustments
      Min. 3 levels of security                                                                     Upright back lock
      1 level of security                                                                           Supportive Mesh with tension zones
      No electronic security                                                                        Synchronized tilt mechanism
      WALL & PARTITIONS                                                                             Supportive Mesh with optional upholstery back
      Plasterboard with fabric finish /
      to slab with high acoustic rating)
      Double glazed partition
      Single glazed partition
      Plasterboard walls
      FLOOR FINISHES

      Marble/Stone Slab Finishes
      Carpet Tile
      Vinyl Sheets or basic concrete screed finishes

12   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                          CBRE PROJECT MANAGEMENT   13
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
LEASING
                                                                                                                       The graph below provides the leasing costs per sq ft in USD for Prime and Grade A building in each market.

                                                                                                                       Leasing wheel – Prime Rent                               Manila
                                                                                                                                                                                          Hong Kong
                                                                                                                                                                                                 257            Beijing
                                                                                                                                                                     Bangkok                                                   Tokyo
                                                                                                                                                                                                          174
                                                                                                                                                            Bangalore                                                                    Shanghai
                                                                                                                                                                                                                148

                                                                                                                                                          Auckland                                                   118                       Delhi
                                                                                                                                                                                            31
                                                                                                                                                                                           31
                                                                                                                                                                                        33                               106
                                                                                                                                                      Melbourne
                                                                                                                                                                                       35                                                       Singapore
                                                                                                                                                                                      39                                 92
                                                                                                                                                                                      39                             81
                                                                                                                                                                                       45
                                                                                                                                                         Gurgaon                        47                          78                          Mumbai
                                                                                                                                                                                          57                   71
                                                                                                                                                                                               59 62 62
                                                                                                                                                                Perth                                                                      Sydney

                                                                                                                                                                  Brisbane                                                          Seoul

                                                                                                                                                                             Taipei                                      HCMC
                                                                                                                                                                                      Guangzhou           Jakarta

                                                                                                                                                                                                       Beijing
                                                                                                                       Leasing wheel – Grade A                                    Hyderabad               117
                                                                                                                                                                                                                          Tokyo

                                                                                                                                                                        Kuala Lumpur                                     116         Hong Kong
                                                                                                                                                                                                                                99
                                                                                                 CBRE ORLANDO OFFICE                                                     Manila                                                                Singapore

                                                                                                                                                                                                                                     85
                                                                                                                                                                 Bangalore                                                                         Shanghai
                                                                                                                                                                                                                                          85
                                                                                                                                                                                                     20
                                 While headline rental rates remain a critical component for any office                                                        Gurgaon
                                                                                                                                                                                                24        11                                           Delhi
                                                                                                                                                                                          27
                                 user, we are witnessing an increased emphasis placed on a more holistic                                                                                  27
                                                                                                                                                                                                                                          70

                                 understanding of occupancy factors including how location, fit-out, FM cost                                                   Auckland
                                                                                                                                                                                          29                                             63             Mumbai
                                                                                                                                                                                          30
                                 and workplace program can support and drive corporate objectives.                                                                                         35
                                                                                                                                                                                                                                    53
                                                                                                                                                                                                                               43
                                                                                                                                                                   Bangkok                   38                                                        Seoul
                                                                                                                                                                                                                          42
                                                                                                                                                                                                  39 39
                                                                                                                                                                                                        40 41
               Manish Kashyap                                                                                                                                      Melbourne                                                                     Brisbane
               Regional Managing Director,
               Asia Pacific                                                                                                                                                  Sydney                                                       Taipei
               Brokerage                                                                                                                                                      Guangzhou                                         Jakarta
                                                                                                                                                                                               Perth                HCMC

14   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                             CBRE PROJECT MANAGEMENT   15
ASIA PACIFIC FIT-OUT COST GUIDE - Occupier Projects 2016/17 Edition - CBRE
TYPICAL LEASE PERIOD
     The Asia Pacific geographical map represents the typical lease period by location.
                                                                                                       NEW DELHI                                           TOKYO
     The periods are further categorized into 3 main groups namely 3-year lease, 5 to
     6-year lease and 8 to 9-year lease. Each period must be carefully considered by
     corporate clients when they are deciding to enter a new market, looking for a new                HYDERABAD                                            SEOUL
     lease space or renewing their existing lease terms.

                                                                                                        MUMBAI                                            BEIJING

                                                                                                        CHENNAI                                          SHANGHAI

                                                                                                      BANGALORE                                            TAIPEI

                                                                                                                                                        GUANGZHOU
                                                                                                        BANGKOK
                                                                                                                                                        HONG KONG
                                                                                                      KUALA LUMPUR
     Markets such as the Pacific region tend to have longer                                                                                                MANILA
     lease terms whereas most markets in Asia have terms                                               SINGAPORE
     ranging from 3 to 5 years. This is primarily due to                                                                                                  HCMC
     greater market volatility in Asia with landlords taking                                            JAKARTA
                  advantage of rental cycles. More recently                                                                                                BRISBANE
                  there has been a trend for occupiers to                                                PERTH
                  secure longer lease periods, especially for                                                                                              SYDNEY
                  larger build-to-suit or special use facilities
                  where lease terms of 5 to 9 years can be
                  achieved.
                                                                                                                                                         AUCKLAND
                                                                                                       MELBOURNE

                        3 YEARS LEASE                                                                 5-6 YEARS LEASE               8-9 YEARS LEASE

               BEIJING           HCMC                                                     SEOUL            MANILA       NEW DELHI     MELBOURNE
               SHANGHAI          JAKARTA                                                  TOKYO            SINGAPORE    BANGALORE     AUCKLAND
               GUANGZHOU         KUALA LUMPUR                                             TAIPEI           PERTH        CHENNAI
               HONG KONG         BANGKOK                                                  HYDERABAD        BRISBANE     SYDNEY
                                                                                                           MUMBAI

16   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                  CBRE PROJECT MANAGEMENT   17
FACILITIES
                                          CBRE MADRID OFFICE

     MANAGEMENT
     COST

18   ASIA PACIFIC FIT-OUT COST GUIDE   CBRE PROJECT MANAGEMENT   19
FACILITIES MANAGEMENT COST
                                                                                                                                                                                   The graph below indicates the unit rates per sqft in USD for various components annually. Rates in different locations are directly affected by the labor
                                                                                                                                                                                   market condition and local tariff rates.

                                                                                                                                                                                                                                   CLEANING                                SECURITY SERVICES                                          PESTS CONTROL                              LANDSCAPING

     The operating cost of a corporate office is                        classified into 9 key components namely,               waste, landscaping and reception. Depending                                                         MAILROOM                                  RECEPTION                                CONFIDENTIAL WASTE                                     M&E                 UTILITIES
     defined as the Facilities Management (FM)                          cleaning, M&E maintenance, pest control,               on the facility, the cost may differ on the final             Sydney               1.34                       0.91                                1.62                                      1.80                                    2.25                                    1.61              9.75
     cost in this document. The FM cost shall be                        security services, utilities, mailroom, confidential   service standard adopted by the client.
                                                                                                                                                                                          Singapore                  1.62                            1.05                               1.48                                  1.64                                 2.03                             1.23             9.26

                                                                                                                                                                                               Perth              1.25                     0.84                            1.55                                     1.72                                   2.09                                  1.50              9.17

     Key Components                                                                                                                                                                            Tokyo                        2.11                            0.58                         1.62                                      1.80                                   1.92                      0.84          9.07

                                                                                                                                                                                           Auckland           1.21                        0.81                            1.44                               1.60                                  2.02                                   1.45             8.74

                                                                                                                                                                                          Melbourne           1.12                   0.75                            1.55                                    1.72                                 1.87                               1.34               8.55

                                                                                                                                                                                            Brisbane         1.08                   0.73                            1.55                                 1.72                                    1.80                            1.29              8.35

                                                                                                                                                                                               Seoul              1.25                     0.88                             1.62                                     1.80                               1.45                     0.98            8.16

                                                                                                                                                                                          Hong Kong               1.31               0.39                    1.33                               1.48                                 1.64                             1.49                7.81
                                                                  CLEANING                  SECURITY SERVICES         PESTS CONTROL                                                           Taipei              1.35                0.39                    1.30                             1.44                                       2.07                         0.89        7.62

                                                                                                                                                                                             Beijing          1.11                    0.87                        0.97                   1.08                                 1.87                             1.45                7.56

                                                                                                                                                                                           Shanghai          1.07                    0.83                     1.04                       1.16                                 1.79                             1.39              7.48

                                                                                                                                                                                         Guangzhou          0.96                   0.75                    1.04                     1.16                               1.62                        1.25                6.96

                                                                LANDSCAPING                        MAILROOM              RECEPTION                                                           Jakarta                1.55                            1.11                         0.86                 0.96                         1.40                 0.80          6.87

                                                                                                                                                                                      Kuala Lumpur          0.87           0.31             0.86                   0.96                            1.92                                   1.30            6.38

                                                                                                                                                                                            Bangkok           1.13                 0.40             0.86                  0.96             0.51              0.88           4.86

                                                                                                                                                                                             Manila         0.92            0.40             0.86                   0.96                0.66            0.76           4.67

                                                                                                                                                                                            Mumbai          0.86            0.45           0.65             0.72             0.75               0.85           4.39
                                                         CONFIDENTIAL WASTE                  MECHANICAL &                 UTILITIES
                                                                                        ELECTRICAL MAINTENANCE                                                                            Bangalore        0.78           0.41            0.65         0.72                0.69            0.78         4.13

                                                                                                                                                                                          Hyderabad        0.72          0.38         0.68            0.76                0.63          0.72           3.97
     Guide Assumptions for FM cost                                                                                                                                                                  0.00                 1.00                    2.00                     3.00                  4.00                   5.00                  6.00                 7.00               8.00                  9.00             10.00
     • The commercial tower is a Grade A office building within the     • Facility Management costs include:                   • Exclusions:
       Central Business District with the following characteristics:      -   Cleaning                                           - Dedicated Chiller and generator maintenance                                                                        FM Industry professionals would concur that benchmarking spend
       - A modern, flexible, column-free footprint of at least 15,000     -   Mechanical & Electrical Maintenance                - Property Tax
         square feet                                                      -   Security Services                                  - Management fee                                                                                                     across markets and industries is a challenging exercise due to the
       - Total floor area of at least 300,000 square feet                 -   Utilities                                                                                                                                                               numerous variables included within the spend categories. However,
     • Commercial office assumptions:                                     -   Pest control
                                                                          -   Mailroom
                                                                                                                                                                                                                                                      what it does allow us to do is to identify anomalies and question
       - Office size between 25,000 to 30,000 square feet.
       - Density range of 1 workstation to 90 to 110 square feet          -   Reception                                                                                                                                                               further the operating expenses we manage.
       - Fixed 1-1 desk ratio                                             -   Landscaping
                                                                                                                                                                                                              Cameron Ahrens
                                                                          -   Confidential waste disposal
                                                                                                                                                                                                              Executive Director, Asia Pacific
20   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                          CBRE Enterprise Facilities Management                                                                                                                                       CBRE PROJECT MANAGEMENT                   21
CBRE TOKYO OFFICE

                    NET PRESENT
                    LIFECYCLE
                    COSTING

22   ASIA PACIFIC FIT-OUT COST GUIDE   CBRE PROJECT MANAGEMENT   23
                                                                  23
NET PRESENT LIFECYCLE COSTING
                                                The CBRE termed Net Present Lifecycle Costing (NPLCC) is an index that assumes a typical 5 year investment time frame
                                                                                                                                                                                                                                      The below graph indicates the NPLCC proportion percentage between the 4 main cost components of the corporate real estate.
                                                and not necessarily the lease period. NPLCC is a guide that benchmarks potential capital and operating expenses
                                                across the region over the investment period brought forward to present value. NPLCC provides holistic cost data to
                                                clients, enabling informed decisions and guides real estate strategies.
                                                                                                                                                                                                                                                                           FIT-OUT COST                        LEASING COST                        FM COST                       REINSTATEMENT
                                                                                                                                                                                                                   NPLCC
                                                                              FIT-OUT COST                       LEASING COST                    FM COST                  REINSTATEMENT                          (USD/Sqft)                                                                                                                                    6%       5%                                          5%
                                                                                                                                                                                                                                                     10%     10%                                                                                                                 9%     7%        8%     6%                6%
                                                                                                                                                                                                                                            15%                       9%     9%             11%              13%    10%        11%      12%             11%
                                               Tokyo                    $126                                                             $484                                                   $38                   673                                                            13%            13%                                        13%

                                             Beijing                  $105                                                          $488                                                    $33                       635
                                     Hong Kong                          $125                                                      $413                                           $34                                  588                   38%                      46%
                                                                                                                                                                                                                                                     58%     58%            53%      43%            40%      49%                        50%    48%                               56%
                                                                                                                                                                                                                                                                                            60%                         55%    58%                      55%
                                       Singapore                       $109                                             $354                                      $39                                                 511                                                                                                                                      75%     78%              72%      69%     70%        77%    72%
                                        Shanghai                     $100                                            $354                                      $32                                                    495
                                               Seoul                     $128                                 $221                       $35                                                                          392

                                                Delhi             $60                                  $292                              $19                                                                          372
                                           Mumbai                 $66                                $263                          $20                                                                                351
                                             Sydney                     $115                        $158                   $42                                                                                        327
                                               Perth                    $113                        $163                   $40                                                                                        325                   46%                      41%                            42%
                                                                                                                                                                                                                                                                            36%      40%
                                                                                                                                                                                                                                                     31%     31%                                             35%        32%             35%    35%      31%                      33%
                                          Brisbane                                                                                                                                                                                                                                          28%                                29%
                                                                     $100                          $179                     $36                                                                                       325                                                                                                                                      19%                      20%      21%     21%               19%
                                                                                                                                                                                                                                                                                                                                                                       16%                                          17%
                                              Taipei                 $86                       $175                     $32                                                                                           301
                                     Guangzhou                        $96                        $163                 $30                                                                                             297

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                                            Jakarta                 $81                       $171                   $31                                                                                              286

                                                                                                                                                                                                                                                                                       K
                                         Auckland                       $114                    $121              $37                                                                                                 282
                                          Bangkok                   $84                   $125             $21                                                                                                        237                                                       Corporate Real Estate needs to take into account the total cost of an asset
                                             Manila                  $89                $100           $20                                                                                                            216                                                       when presenting the cost/benefit analysis to the business for real estate
                                 Kuala Lumpur                        $87               $83         $28                                                                                                                207
                                                                                                                                                                                                                                                                                decisions. CBRE has provided a holistic cost guide as well as Workplace
                                       Bangalore
                                                                                                                                                                                                                                                                                solutions to support corporate objectives.
                                                                  $60              $113           $19                                                                                                                 193
                                          Gurgaon                 $60              $113           $19                                                                                                                 193
                                      Hyderabad                  $55         $46 $18                                                                                                                                  121                             Nick Lee
                                                                                                                                                                                                                                                      Regional Director, Asia Pacific
                                                           $0                   $100                $200                 $300                  $400                $500                 $600                 $700
                                                                                                                                                                                                                                                      CBRE Project Management
     Assumptions: Grade A office building and defined as the gross lease cost. Medium standard office fit-out construction rates. FM cost will be adopting the CBRE Research y-o-y inflation rates and the discount rate for NP                       Global Leadership & Platform
     analysis is 10%.

24   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                                                                                                                                       CBRE PROJECT MANAGEMENT               25
NET PRESENT LIFECYCLE COSTING
                                                                      Tokyo
                                                  Hyderabad                         Beijing
                                                                       1.36
                                                                               1.28           Hong Kong
                                           Gurgaon
                                                                                           1.19
                                 Bangalore                                                               Singapore

                                                                                              1.03
                         Kuala Lumpur                       0.39                                             Shanghai
                                                       0.39         0.24                            1.00
                                                     0.42
                               Manila                                                                             Seoul
                                                     0.44                                         0.79

                                                     0.48                                         0.75
                            Bangkok                                                                               Delhi
                                                     0.57
                                                                                             0.71
                                                       0.58                            0.66
                              Auckland                                                                       Mumbai
                                                            0.60
                                                                   0.60 0.61 0.66   0.66

                                       Jakarta                                                           Sydney

                                         Melbourne                                            Perth
                                                 Guangzhou                          Brisbane
                                                                      Taipei

                     Through collaboration and extensive data mining from our integrated services, CBRE is able
                     to provide our clients a concise index and representation of the major cost considerations
                     for their commercial office investment. The NPLCC provides clients with the advantage of
                     understanding the full cost over the total lease period. This together with the labour analytics
                     can help develop real estate strategies that support corporate objectives.
     Royston Toh
     Senior Manager, Asia Pacific
     CBRE Project Management
     Global Leadership & Platform
                                                                                                                          CBRE BALTIMORE OFFICE

26   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                      CBRE PROJECT MANAGEMENT   27
ACTIVITY-BASED WORKING
     FM COST
     CONSIDERATIONS

     Change Management                                IT Cost                                          Workplace Manager / Concierge                   Real-time Occupancy                              Upgraded FM support                              Booking system
     Continue change management and                   IT Function needs to be more pro-active in       Services                                        Management                                       More frequent cleaning of surfaces and devices   Advanced check-in system to monitor utilization
     communication support until desired changes      managing maintenance and ensuring that                                                                                                            (keyboards and phones as they are shared),       for meeting rooms and workstations.
                                                                                                       Re-shaping FM services to include concierge     Real-time information on how space is being
     are fully incorporated in attitudes, behaviors   the platform that supports mobility (hardware,                                                                                                    digitization support.
                                                                                                       function. Expansion of roles to being an        utilized, space loading monitoring so as to
     and culture.                                     bandwidth availability, software) is always      ambassador for the new work practices, answer   activate reactive/proactive RE and FM actions.
                                                      operating at an optimum level.                   questions about how the new workplace
                                                                                                       operates and taking a more proactive role in
                                                                                                       ensuring that everything works.
28   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                                                      CBRE PROJECT MANAGEMENT          29
REGIONAL FIT-OUT
     COST ANALYSIS

30
30   ASIA PACIFIC FIT-OUT COST GUIDE   CBRE PROJECT MANAGEMENT   31
JAPAN COST ANALYSIS – TOKYO                                                                                                                TAIWAN COST ANALYSIS – TAIPEI
                                              TOKYO                                                                                                                            TAIPEI
                                            Tokyo continues to see strong demand from companies looking to expand their footprint or                                           Office investment volume surged mainly driven by solid activity from owner-occupiers. Despite the
                                            upgrade to better buildings. However, some tenants began to delay decisions ahead of the large                                     surge in total investment turnover, the number of transactions remained low, reflecting the ongoing
                                       Tokyovolume of supply due for completion from 2018 onwards. Landlords of buildings that have been                                       lack of investable office assets. On the other hand, owners-occupiers continue to benefit from low
                                            less successful in letting space started to offer more flexible terms.                                                             interest rates after the Central Bank cut policy rates.
                                                                                                         US$168                                                                                                                     US$113
                                                                                                                                                                                                                                                            Furniture
                                                                                                                                Furniture
                                                                                                                                                                                                                                                            M&E Works
     Hisanao Kajiura                                                                                        17%                 M&E Works
                                                                                                                                                James Ho                                                                                19%
                                                                                                                                                                                                                                                            Builder Works
                                                                                                                                Builder Works
     Senior Director                                                                                                                            Senior Director                                                                                             Soft Cost
                                                                                                                                Soft Cost                                                                     US$86
     Tokyo Project Management                                                                                                                   Taiwan Project Management
                                                                                US$126
     +81 3 52889749                                                                                                                             +886 2 77069538                                                 19%                     30%
     hisanao.kajiura@cbre.co.jp                                                    18%                      39%                                 james.ho@cbre.com                     US$65
                                                         US$84                                                                                                                          19%
                                                                                                                                                                                                                29%
                                                           16%                                                                                                                          29%
                                                                                   39%
                                                          37%                                                                                                                                                                           44%
                                                                                                            36%
                                                                                                                                                                                                                44%
                                                                                   33%                                                                                                  43%
                                                           34%

                                                          13%                      10%                      8%                                                                          9%                      8%                      7%

                                                          Basic                  Medium                    High                                                                         Basic                 Medium                    High

     SOUTH KOREA    COST ANALYSIS – SEOUL
               shanghai
                                                                                                                                                HONG KONG COST ANALYSIS
                                             SEOUL                                                                                                                             HONG KONG
                                           seoul
                                             Demand from the co-working sector is steadily rising. More firms are considering implementing                                     Serviced office and co-working space providers continued to register solid demand for space.
                                             workplace strategy, partly from a cost saving and space efficiency angle. A number of firms have                                  Decentralisation activity is expected to increase as secondary space and new supply in areas such
                                             already implemented measures such as hot desking and smart offices.                                                               as Kowloon East provides options for occupiers currently in expensive submarkets.
                                                                                                                                                                                                                                   US$200
                                                                                                       US$166                                                                                                                                             Furniture
                                                                                                                              Furniture                                                                                                                   M&E Works
                                                                                                                                                                                                                                      21%                 Builder Works
                                                                                                                              M&E Works
     Bruce Lee                                                                                            20%                                   Steve Palfrey                                                                                             Soft Cost
                                                                                US$128                                        Builder Works
     Senior Director                                                                                                          Soft Cost         Senior Director                                             US$125
                                                                                  20%
     South Korea Project Management                                                                       32%                                   Hong Kong Project Management
                                                                                                                                                                                                               19%
     +822 21705870                                       US$91                                                                                  +852 28202996
                                                                                                                                                                                                                                      36%
     bruce.lee@cbrekorea.com                               15%                    23%                                                           steve.palfrey@cbre.com.hk            US$84
                                                                                                                                                                                        15%                    38%
                                                           25%
                                                                                                          40%
                                                                                                                                                                                        38%
                                                                                  45%                                                                                                                                                 35%
                                                           45%
                                                                                                                                                                                                               33%
                                                                                                                                                                                        34%
                                                           15%                    12%                     8%
                                                                                                                                                                                        13%                    10%                    8%
                                                            Basic                Medium                   High
                                                                                                                                                                                        Basic                Medium                   High
32   ASIA PACIFIC FIT-OUT COST GUIDE       mumbai                                                                                                                                                                                                  CBRE PROJECT MANAGEMENT           33
CHINA COST ANALYSIS – BEIJING/                                                                                                                CHINA COST ANALYSIS – SHANGHAI
     GUANGZHOU
                                                 BEIJING                                                                                                                                  SHANGHAI
                                       beijing   Beijing saw stronger demand from domestic companies but the general focus among                                                          Shanghai enjoyed a positive quarter as market sentiment remained positive. Solid leasing demand
                                                 multinationals continued to be on cost saving or renewals. The period saw some surrender leases                                          was recorded across a wide range of sectors but occupiers took longer to make decisions due to
                                                 and relocations to cheaper areas.                                                                                                        the introduction of the new VAT.
                                                                                                          US$156                                                               shanghai
                                                                                                                                   Furniture
                                                                                                                                   M&E Works
                                                                                                            19%                    Builder Works                                                                                                US$152                     Furniture
     Catherine Xiong                                                                                                               Soft Cost       Bahtiyar Tay
                                                                                                                                                                                                                                                                           M&E Works
     Senior Director                                                                                                                               Senior Director
                                                                                                                                                                                                                                                                           Builder Works
     China Project Management                                                   US$105                                                             China Project Management                                                                        20%                     Soft Cost
     +86 10 85880788                                                                                                                               +86 21 24011403
     catherine.xiong@cbre.com.cn
                                                                                   21%                       40%                                   bahtiyar.tay@ cbre.com.cn
                                                       US$75                                                                                                                                                           US$100

                                                         20%                       37%                                                                                                                                    20%                       41%
                                                                                                                                                                                               US$71
                                                         34%
                                                                                                             31%                                                                                 20%                      38%
                                                                                   29%
                                                         28%                                                                                                                                     35%
                                       guangzhou         18%                       13%                       10%
                                                                                                                                                                                                                                                    29%
                                                                                                                                                                                                                          28%
                                                         Basic                   Medium                      High                                                                                28%
                                                                                                                                                                                                 17%                      14%                      10%
                                       hyderabad/kolkata/pune
                                               GUANGZHOU                                                                         Furniture                                                      Basic                   Medium                     High
                                                                                                                                 M&E Works
                                                                                                         US$148                  Builder Works
                                                                                                                                 Soft Cost                                     shanghai
                                                                               US$96                        19%

                                                                                  19%

                                                      US$65                                                 37%
                                                        13%                       37%

                                                        36%
                                                                                                            34%
                                                                                  33%
                                                        33%

                                                        18%                       11%                       10%

                                                        Basic                   Medium                      High

34   ASIA PACIFIC FIT-OUT COST GUIDE   new delhi/bangalore/chennai                                                                                                                                                                                          CBRE PROJECT MANAGEMENT         35
INDIA COST ANALYSIS – MUMBAI/                                                                                                                         INDIA COST ANALYSIS – NEW DELHI/
     HYDERABAD/PUNE/KOLKATA                                                                                                                                BANGALORE/CHENNAI
                                                   MUMBAI                                                                                                                   NEW DELHI/ BANGALORE/ CHENNAI
                                                   Co-working space is gaining traction, with several new openings in Bangalore and Mumbai in                               New Delhi is still registering solid demand for front office space, activities mainly focus on
                                       mumbai recent quarters. Most providers are domestic operators focusing on catering to start-ups. Among                               Gurgaon, where IT companies are particularly active. Many companies in Bangalore have capped
                                                   domestic firms, particularly those in the financial services sector, there is still a strong focus on
                                                                                                                                                                   new delhi/bangalore/chennai
                                                                                                                                                                            their growth as city centre rents are quite high.
                                                   acquiring properties for self-use,especially in Mumbai.
                                                                                                              US$85
                                                                                                                                       Furniture
                                                                                                                 15%                   M&E Works                                                                               US$78
     Gurjot Bhatia                                                                                                                     Builder Works                                                                                                   Furniture
                                                                                                                                       Soft Cost                                                                                 14%                   M&E Works
     Managing Director                                                            US$66                                                                                                                                                                Builder Works
     India Project Management                                                                                                                                                                                                                          Soft Cost
                                                                                    14%                                                                                                                US$60
     +91 1142490200
     gurjot.bhatia@cbre.com                                                                                      44%                                                                                     14%
                                                      US$47
                                                         16%                        44%                                                                                                                                          44%
                                                                                                                                                                              US$43
                                                                                                                                                                                 13%                     43%
                                                         42%
                                                                                                                 30%
                                                                                     29%                                                                                         42%
                                                         28%                                                                                                                                                                     30%
                                                                                                                                                                                                         29%
                                                         14%                        13%                          11%                                                             28%
                                                         Basic                     Medium                       High                                                             17%                     14%                     12%

                                   mumbai HYDERABAD/ KOLKATA/ PUNE                                                                                                              Basic                  Medium                    High
                                 hyderabad/kolkata/pune
                                           Recent quarters have seen stronger leasing activity in Hyderabad which offers lower rents and is
                                                                                                                                                                   new delhi/bangalore/chennai
                                                   emerging as an alternative to Bangalore. The city was the country’s original IT hub and is returning
                                                   to prominence after an end to several years of political instability.
                                                                                                            US$70
                                                                                                                                       Furniture
                                                                                                              13%                      M&E Works
                                                                                                                                       Builder Works
                                                                                 US$55                                                 Soft Cost
                                                                                   13%                         41%
                                                      US$40
                                                        12%                        40%

                                                        40%                                                   28%
                                                                                   28%
                                                        28%
                                                                                    19%                       18%
                                                        20%

                                                       Basic                     Medium                       High
36   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                                                                        CBRE PROJECT MANAGEMENT          37
SOUTH EAST ASIA COST ANALYSIS –                                                                                                                  SOUTH EAST ASIA COST ANALYSIS –
     SINGAPORE/KUALA LUMPUR                                                                                                                           VIETNAM/BANGKOK
                                                SINGAPORE                                                                                                         HCMC                                               HANOI
                                             Providers of co-working space are emerging as a new driver of demand. Recent quarters have                           The unchanged supply in office space allowed       Large-scale office buildings are being actively
                                             seen several major operators pre-commit to new space. Traditional serviced office providers are                      HCMC office market to absorb the remaining         fitted out for launch, which will add up both
                                       singapore
                                             responding by offering similar product. Landlords are responding to weak demand by being                             space in both Grade A and B. However, by           grade A and B stocks. This is expected to put
                                             creative to retain tenants such as by providing a capital contribution towards fit-out costs and other               the end of 2016, there will be a new wave of       downward pressure on rents.
                                             incentives.                                                US$127                                                    supply in decentralized area, expecting the              US$105
                                                                                                                                                                                                                                                   Furniture
                                                                                                                                Furniture                         market to change in both rent and vacancy
                                                                                                                                M&E Works                                                                                                          M&E Works
     Garth Chapman                                                                                         20%                                                    rate.                                                                            Builder Works
                                                                                                                                Builder Works                                                       US$84                     31%
     Senior Director                                                                                                            Soft Cost                                                                                                          Soft Cost
     SEA Project Management                                                     US$109
     +65 62291114                                                                                                                                                                                     28%
                                                                                   20%                                                                                     US$61
     garth.chapman@cbre.com.sg                                                                             38%
                                                                                                                                                                              22%                                             35%

                                                         US$80                     40%                                                                                                                37%

                                                           16%                                                                                                                38%
                                                                                                                                                                                                                              27%
                                                           40%                                             36%
                                                                                                                                                                                                     27%
                                                                                   33%                                                                                        30%
                                                           34%                                                                                                                10%                     8%                      7%
                                                           10%                      7%                      6%
                                                                                                                                                                             Basic                  Medium                    High
                                                          Basic                  Medium                    High
                                                                                                                                                                  BANGKOK
                                                KUALA LUMPUR                                                                                                       The current market condition of low vacancy rates and rising rents is expected to continue due
                                                The coming few years will continue to be a tenants’ market with more quality office space
                                                                                                                                                                  to the limited future supply with reasonable level of demand in the next few years. However, after
                                                available in the market and owners/investors may experience stiff competition in retaining
                                       KL                                                                                                                         2018, the market condition could change if all the planned office developments (1 million sq. m.)
                                                existing tenants or leasing out new space. Prime rentals are expected stay stable, but may
                                                                                                                                                                  were to start at the same time.                          US$134
                                                see a dip in occupancy rates with the increase competitiveness.                                                                                                                                   Furniture
                                                                                                                                                                                                                                                  M&E Works
                                                                                                        US$125                                                                                                               16%                  Builder Works
                                                                                                                               Furniture                                                                                                          Soft Cost
                                                                                                                               M&E Works
                                                                                                           23%                 Builder Works
                                                                                                                               Soft Cost
                                                                                US$87                                                                                                             US$84
                                                                                                                                                                                                                             39%
                                                                                   22%                                                                                                              17%
                                                          US$64                                            38%

                                                           17%
                                                                                   38%                                                                                   US$46                      39%
                                                                                                                                                                           15%
                                                           40%
                                                                                                           32%                                                             38%                                               39%
                                                                                   31%
                                                                                                                                                                                                    36%
                                                           32%
                                                                                                                                                                           35%
                                                           11%                     9%                      7%                                                               12%                      8%                      6%
38   ASIA PACIFIC FIT-OUT COST GUIDE                       Basic                 Medium                    High                                                            Basic                  Medium                     High     CBRE PROJECT MANAGEMENT          39
SOUTH EAST ASIA COST ANALYSIS –                                                                                                              PACIFIC COST ANALYSIS – SYDNEY/
     JAKARTA/MANILA                                                                                                                               MELBOURNE
                                              JAKARTA                                                                                                                          PACIFIC
                                             With the ongoing influx of new office buildings for the next 1-2 years and given that for the past                                Landlords are reviewing how they interact with tenants as they seek to become more customer-
                                             1 year, the total amount of demand has been vastly superseded by the total amount of supply,                                      centric. One popular measure has been to introduce simplified and shorter-form leases. Occupiers
                                       jakarta
                                             occupancies and rental rates will have further adjustments. Occupancy rates of CBD office in Q2 is                                are pushing landlords to install high quality end-of-trip facilities for employees. There is demand
                                             still on the downhill trend due to limited demand with strong supply situation.                                                   for co-working space but some concern over the longevity of this sector.
                                                                                                        US$110                                                                 SYDNEY
                                                                                                                               Furniture
                                                                                                                               M&E Works
                                                                                                                                                  Ian Rea
                                                                                                                                                                               Sydney enjoyed solid leasing activity supported by strong white collar employment growth.
     Garth Chapman                                                                                        23%                  Builder Works
                                                                                                                                                  Managing Director            Financial, business services and education & training firms were especially busy.
     Senior Director                                                                                                           Soft Cost
     SEA Project Management
                                                                               US$81                                                              Pacific Project Management                                                           US$180
     +65 62291114                                                                                                                                 +61 2 9333 9102                                                                                              Furniture
                                                                                  21%                                                                                                                                                                          M&E Works
     garth.chapman@cbre.com.sg                                                                                                                    ian.rea@cbre.com.au                                                                     19%
                                                         US$57                                                                                                                                                                                                 Builder Works
                                                                                                          36%                                                                                                                                                  Soft Cost
                                                           18%                                                                                                                                                 US$115
                                                                                  37%                                                                                                                             19%
                                                                                                                                                                                                                                          37%
                                                           38%                                                                                                                           US$85
                                                                                                          33%                                                                             15%                     37%
                                                                                  32%                                                                                                      37%
                                                           32%
                                                                                                                                                                                                                                          34%
                                                           12%                     10%                     8%                                                                                                     31%
                                                                                                                                                                                           32%
                                                          Basic                  Medium                   High
                                                                                                                                                                                           16%                     13%                    10%
                                              MANILA
                                           Buildings slated for turnover in the next 2 years continue to be traded at fast rates as more                                                  Basic                  Medium                   High
                                         manila
                                              companies, both business process outsourcing (BPO) and non-BPO, help build up this quarter’s                                     MELBOURNE
                                              tenant representation sales.                          US$129                                                                     Both enquiry levels and the volume of leasing transactions recorded a steady increase in
                                                                                                                              Furniture
                                                                                                                              M&E Works                                        Melbourne. Technology firms were noticeably more active this quarter.
                                                                                                          16%                 Builder Works
                                                                                                                              Soft Cost                                                                                                US$141
                                                                                                                                                                                                                                                              Furniture
                                                                                                                                                                                                                                                              M&E Works
                                                                                                                                                                                                                                          19%
                                                                                                                                                                                                                                                              Builder Works
                                                                               US$89                                                                                                                                                                          Soft Cost
                                                                                                          39%                                                                                                  US$103
                                                                                 17%
                                                                                                                                                                                                                  18%
                                                                                                                                                                                                                                          36%
                                                                                                                                                                                        US$73
                                                       US$50                     39%                                                                                                      14%                     37%
                                                         15%
                                                                                                                                                                                          35%
                                                         38%                                              39%                                                                                                                             35%
                                                                                                                                                                                                                  33%
                                                                                 36%                                                                                                      33%
                                                         35%
                                                                                                                                                                                          18%                     12%                     10%
                                                         12%                      8%                      6%
                                                                                                                                                                                         Basic                  Medium                    High
40   ASIA PACIFIC FIT-OUT COST GUIDE                    Basic                  Medium                     High                                                                                                                                     CBRE PROJECT MANAGEMENT           41
PACIFIC COST ANALYSIS – BRISBANE/PERTH                                                                                                        PACIFIC COST ANALYSIS – AUCKLAND
                                       BRISBANE                                                                                                                AUCKLAND
                                       Brisbane continued to see a certain degree of uncertainty but the worst appears to be over. Lease
                                       expiries are driving deals. More companies are taking smaller spaces and/or moving to a flexible                                            US$163
                                       working environment.                                                                                                                                          Furniture
                                                                                                                                                                                                     M&E Works
                                                                                                  US$135                                                                            15%              Builder Works
                                                                                                                             Furniture                                                               Soft Cost
                                                                                                                             M&E Works
                                                                                                                                                                          US$114
     Ian Rea                                                                                         21%
                                                                                                                             Builder Works                                 12%
     Managing Director                                                                                                                                                              32%
                                                                     US$100                                                  Soft Cost
     Pacific Project Management                                                                                                                                 US$65
     +61 2 9333 9102                                                     20%
                                                                                                     36%                                                         10%       30%
     ian.rea@cbre.com.au
                                           US$70
                                                                                                                                                                 27%
                                             14%                         36%                                                                                                        36%
                                                                                                                                                                           38%
                                             37%                                                                                                                 40%
                                                                                                     32%
                                                                         32%                                                                                     23%        20%     17%
                                             33%
                                                                                                                                                                 Basic    Medium    High
                                             16%                         12%                         11%

                                            Basic                      Medium                        High

                                       PERTH
                                       In Perth the period saw flight to quality across all sectors driven by expiring leases. Occupiers in this
                                       market are taking advantage of landlords’ weakness to secure attractive deals.

                                                                                                US$171
                                                                                                                            Furniture
                                                                                                                            M&E Works
                                                                                                    19%                     Builder Works
                                                                                                                            Soft Cost
                                                                    US$113
                                                                        18%
                                                                                                    35%
                                          US$78
                                            17%                         35%

                                            34%
                                                                                                    33%
                                                                        31%
                                            32%

                                            17%                         16%                         13%

                                           Basic                      Medium                        High

42   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                                                        CBRE PROJECT MANAGEMENT   43
2016 GLOBAL FIT-OUT COST INDEX
     The 2016 edition cost guide included the          CBRE hope that this can guide corporate clients     purposes. The index wheel should not be
     global cost index to benchmark similar projects   to review the cost globally but would appreciate    replicated or adopted for other documentation
     in key markets across the globe. For more         that a CBRE professional is engaged in-location     without direct consultation with CBRE.
     detailed breakdown by cities within the region,   to support in producing a more specific budget
     please refer to the respective regional cost      estimate for any form of budgetary approval
     guides.

                                                                    New York City

                                                                             1.25
                                  Bangalore                                                                 Frankfurt
                                                                                                    1.20

                                                            0.55

                     Sao Paulo                                                                                           Hong Kong
                                              0.84                                                               1.11

                                                0.91
                                                                                                          1.02
                        Mexico City                                                                                 Sydney

                                                                0.92
                                                                                      1.00

                                               Los Angeles                                   London

44   ASIA PACIFIC FIT-OUT COST GUIDE                                                                                                                       CBRE PROJECT MANAGEMENT   45
KEY CONTACTS
CBRE CONTACTS                                                            ACKNOWLEDGEMENTS

Martin Woods                                                             Royston Toh
Senior Managing Director,                                                Senior Manager
CBRE Project Management, Asia Pacific                                    CBRE Project Management, Asia Pacific
+852 2820 2869                                                           +65 6229 1165
martin.woods@cbre.com.hk                                                 royston.toh@cbre.com.sg

Zac Zdravev                                                              Brendan Bruce
Senior Director                                                          Managing Director
CBRE Project Management, Asia Pacific                                    Haworth, South East Asia
+65 6326 1661
zac.zdravev@cbre.com.sg

Nick Lee
Regional Director
CBRE Project Management, Asia Pacific
+852 2820 8178
nick.lee@cbre.com.hk

Cameron Ahrens
Executive Director
CBRE Enterprise Facilities Management,
Asia Pacific
+65 6229 1122
cameron.ahrens@cbre.com.sg

Peter Andrew
Regional Director
CBRE Workplace Strategies, Asia Pacific
+65 6326 1677
peter.andrew@cbre.com.sg

Rohini Saluja
Executive Director, Asia Pacific
CBRE Advisory & Transaction
+65 6326 1665
rohini.saluja@cbre.com.sg

© 2016 CBRE Group, Inc. All Rights Reserved. CBRE has taken every care in the preparation of this report. The sources of information used are believed to be accurate and reliable, but no guarantee accuracy or
completeness can be given. Neither CBRE, nor any CBRE company, nor any director, representative or employee of CBRE company, accepts liability for any direct or consequential loss arising from the use of this
document or its content. The information and opinions contained in this report are subject to change without notice.

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