Taipei has the lowest office fit-out costs in the Asia-Pacific region, averaging US$70 per square foot (0.09m2), a survey released yesterday by international property broker Cushman & Wakefield showed.
“With average costs of US$70 per square foot, Taipei is the most economical city for office fit-out in [the] Asia-Pacific,” Cushman & Wakefield said, citing its latest office fit-out cost guide, which aims to assist corporate occupiers in drawing up capital planning and relocation budgets.
Office fit-out costs average about US$110 per square foot in the region, although the range is wide, from as little as US$45 per square foot in Taipei to as much as US$275 per square foot in Tokyo, it said.
Construction costs continue to rise, especially in Japan, where preparation for next year’s Tokyo Olympics has exerted greater pressure on available resources, Cushman & Wakefield said, explaining why Tokyo has the highest office fit-out costs, averaging US$202 per square foot.
Robust economic growth across the region this year has driven corporate expansion, which has led to healthy demand for office space, it said.
With limited space available in many cities, competition for space has intensified, fueling rental growth, it added.
Moving forward, corporate occupiers will scrutinize costs closely, with the cost of office fit-outs being a high-priority concern for relocation projects, it said.
A workplace environment that is functional, tech-enabled and flexible, with a variety of work settings and amenities, are the benchmark considerations today.
“The tech-savvy generation expects a high level of technology adoption in the workplace, which enables them to access information easily and quickly in a comfortable environment,” Cushman & Wakefield said.
Large augmented virtuality set-ups, real-time data on display with the latest tech amenities at fast speeds mean higher costs related to high performance and cooling facilities to maintain comfort levels, it said.
Sustainability factors, such as the type of materials used in the fit-out, would also directly affect costs, it said.
“In Taipei, turnkey solution is the most popular approach clients are looking at,” said Gary Chan (詹畢仁), head of project and development services in Taiwan.
Clients prefer to partner with professional project managers with design and build experience to support their upcoming projects, Chan said.
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