Savills Prime Office Cost Insights Q2 2018

The second quarter brought modest occupancy cost increases, primarily across EMEA and in the US. However, the strength of the US dollar hides these increases in Europe. The most significant driver of increased cost was tenants’ capital expenditures across the two regions.

The increasing number of sizable building projects in Europe and the US have allowed construction companies to raise the price of labor and materials, pushing prices higher than in previous quarters.