The evolution of workplace designs gains momentum to cater to growing focus on employee engagement

HONG KONG, CHINA - Media OutReach - 4 November 2019 - Japan and Australia are the most expensive office fit-outlocations in the Asia Pacific, according to Cushman & Wakefield's AsiaPacific Office Fit-out Guide, which provides an indication of the officefit-out construction costs across 28 key gateway cities in the region. Theguide, which serves to assist occupiers in defining their capital planning andrelocation budgets, includes a comprehensive fit-out cost section coveringfurniture, mechanical & electrical works, builder works, AV/IT and othermiscellaneous costs and takes into consideration the reinstatement cost in AsiaPacific.

The top ten cities inAsia Pacific with the highest office fit-out costs are:

Source: Cushman & Wakefield

Tom Gibson, Managing Director, Project & Development Services, AsiaPacific said, "Tokyo's position as the most expensive office fit-outmarket in Asia Pacific is a reflection of the unique construction requirementin this market. The practice of working with building-appointed generalcontractors and the pursuit of high-quality finishes contribute to the highfit-out and reinstatement cost."

"We anticipatethe gap between high and low office fit-out cost cities to narrow in the futureas Vietnam and India will be looking to further improve the quality of theiroffice space including having better technology, end-of-trip amenities andhigher quality furniture, fixtures and equipment. This will drive up the totaloffice fit out costs in these markets, which are already facing rising laborand material costs."

Source: Cushman & Wakefield

Across Greater China, Hong Kong is the mostexpensive office fit-out market, with an average cost of US$130/sq ft, andTaipei the least costly, with an average price of US$70/sq ft. In the Mainland,the average fit-out cost in Beijing is higher than in Shanghai, Shenzhen andGuangzhou.

BryantCheung, Director & Head of Project & Development Services, Hong Kongsaid, "Builders' works is still the most expensive component in new officefit-out projects, however, the AV/IT cost soars considerably given the rise ofremote working, virtual conferencing and co-working places."

Multi-facetedworkplace designs to drive better employee experience and engagement

The change in designand layout of work spaces has also become more prevalent today than everbefore. In recent years, companies have shifted their focus from just lookingat cost reduction and workplace efficiencies to factors that contribute toenhanced employee experience and engagement. They are more willing to offer arange of different facilities in their new offices to create an interactivework environment, which then drive up the fit-out cost, but will help boostproductivity and allow them to win the war for talent.

The move to greateradoption of co-working, flexible workplaces and provision of a variety of agileworkplace solutions has resulted in workplace design becoming moremulti-faceted. Today's workspace needs to support various workstyles fromfocused work to group collaboration and engagement and this means thatcompanies need to have a deeper understanding and wider exposure to the latestworkplace design strategies.

The ability toprovide a high quality of life at work has also become an importantconsideration as companies build their competitive edge in today's war fortalent. Comfort, safety, accessibility, tech-enabled surfaces and sustainablematerials will be even more pervasive in workplace designs across all markets.

A workplaceenvironment that is functional, tech-enabled and flexible with a variety ofwork settings and amenities are the benchmark considerations today. Thetech-savvy generation expects a high level of technology adoption in theworkplace, which enables them to access information easily and quickly in aconducive and comfortable environment. According to Cushman & Wakefield'sAsia Pacific Office Fit-out Cost Guide for 2019/2020, the AV/IT and furniturecomponent is currently about 30% of the total fit-out costs.

The integration oftechnology with furniture has a significant impact on total office fit-outcosts. Large AV set-ups, real time data on display with the latest techamenities at fast speeds mean higher costs related to high performance andcooling facilities to maintain comfort levels. Sustainability factors such asthe type of materials used in the fit-out will also have a direct impact oncosts.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading globalreal estate services firm that delivers exceptional value for real estateoccupiers and owners. Cushman & Wakefield is among the largest real estateservices firms with 51,000 employees in approximately 400 offices and 70countries. Across Greater China, there are 22 offices servicing the localmarket. The company won four of the top awards in the Euromoney Survey 2017& 2018 in the categories of Overall, Agency Letting/Sales, Valuation andResearch in China. In 2018, the firm had revenue of $8.2 billion across coreservices of property, facilities and project management, leasing, capitalmarkets, valuation and other services. To learn more, visit www.cushmanwakefield.com.hk or follow us onLinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china)