• Hong Kong ranked 9th in APAC markets, amid weakened office market demand 
• Beijing and Shanghai jointly ranked 13th

HONG KONG SAR - Media OutReach - 16 December 2020 - Hong Kong remains the most expensive office fit-out market in GreaterChina with an average of USD 130 per square foot, according to Cushman &Wakefield's newly released Asia Pacific Office Fit-Out Cost Guide 2020-21.The study provides an overview of office fit-out costs across 31 key markets inthe Asia Pacific region and gives insights on business and workplace strategiesfor the pandemic recovery period and adoption to the "new normal."

Among all APAC markets in the study, citiesin Japan and Australasia continue to dominate the Top 10 list. Tokyo, Osaka,Nagoya and Sydney lead the rankings, with Melbourne climbing four spots tofifth this year.

Hong Kong ranked 9^th, down twoplaces from last year. However, the city remains the highest-ranked market inGreater China. Beijing, down three places from last year, is jointly rankedwith Shanghai at 13th on the list. Both cities are the most expensive marketsin mainland China.

The top ten cities in Asia Pacificwith the highest office fit-out costs are:

Source:Cushman & Wakefield

Asia Pacific is forecast to emerge from the downturn earlier than otherregions across the globe and is well-positioned to return to strong economicgrowth by the end of 2020. While the region's long-term fundamentals remainintact, the short but sharp recession will continue to echo and shape corporatedecision-making into the future. Effectively, trends that may have taken manyyears to come to full fruition are being fast-tracked.

"As a result of the global pandemic, theincreases in fit-out costs seen in recent years has reversed in most marketsacross the region. This trend is likely to persist as corporate occupierscontinue to assess their capital expenditure budgets and corporate footprintrequirements," said Tom Gibson, Head of Project & Development Services,Asia Pacific, Cushman & Wakefield. "We are also seeing greaterintegration of workplace strategy expertise into the early stages of the designand fit-out process. With working lifestyles and preferences evolving followingthe pandemic, companies are increasingly focused on aligning their spacerequirements with efficient workplace strategies and HR policies to better meettheir corporate business and financial goals."

BryantCheung, Head of Project & Development Services, Hong Kong, Cushman &Wakefield, commented, "There has been a slowdown in Hong Kong's office market, with softeningdemand and substantial new supply coming in 2022 together underpinning rising availabilityand declining rental levels. The pandemic has evidently impacted how occupiersconsider their space needs. Looking ahead, Q1 of 2021 will be characterized bya greater emphasis on agility, with reduced demand from office expansion orupgrading. Instead, we expect to see more cases of consolidation and relocationdriven by business needs and concerns."

The survey furthersuggested an intensifying focus on health and safety, bringing forward greateradoption of touchless technology, improved Heating, Ventilation, and AirConditioning (HVAC); and smarter cleaning practices. Prolonged, enforcedworking from home has highlighted that productivity can be maintained, but atthe cost of personal connection to colleagues and company culture. This raisesquestions around the optimal size and composition of the corporate footprint,while highlighting the need for ongoing investment into IT and audio-visualtechnology for collaborative team working. All these factors are importantconsiderations as companies remain laser-focused on costs.

AboutCushman & Wakefield's Asia Pacific Office Fit-out Cost Guide

Cushman& Wakefield's Asia Pacific Office Fit-out Cost Guide is an essential toolto assist in corporate real estate decision-making regarding both fitting outand reinstating office space. The annual guide, which wasfirst published in 2019, serves to assist occupiers in defining their capitalplanning and relocation budgets. It provides an overview of the office fit-outconstruction costs across 31 key gateway cities in the region, including a comprehensive fit-out costsection covering furniture, mechanical & electrical works, builder works,audio visual/IT and other miscellaneous costs. Download the Asia Pacific Office Fit-out Cost Guide 2020-2021here.

About Cushman & Wakefield

Cushman& Wakefield (NYSE: CWK) is a leading global real estate services firm thatdelivers exceptional value for real estate occupiers and owners. Cushman &Wakefield is among the largest real estate services firms with approximately53,000 employees in 400 offices and 60 countries. Across Greater China, 22 officesare servicing the local market. The company won four of the top awards in theEuromoney Survey 2017, 2018 and 2020 in the categories of Overall, AgencyLetting/Sales, Valuation and Research in China. In 2019, the firm had revenueof $ 8.8 billion across core services of property, facilities and projectmanagement, leasing, capital markets, valuation and other services. To learnmore, visit www.cushmanwakefield.com.hk or follow us on LinkedIn (