According to Savills, 25 of the 40 markets it monitors saw average net effective ‘all-in’ occupier costs (rent plus fit-out costs) grow this quarter (up from 24 in Q2). This increase has been driven by an average 0.9% uptick in gross rents globally over the quarter, while fit-out and associated costs remained relatively flat, seeing only an average 0.03% rise.

In Asia Pacific, average net effective costs for prime offices rose 1% in Q3, although Savills says there are significant inter-regional variations: cities in China saw an average -1.9% reduction in costs, due to significant oversupply of space and fragile economic confidence. Meanwhile, Kuala Lumpur, which had already seen a 4.4% increase in prime office costs in Q2, recorded a further 6.5% rise in Q3 as it continued to see tech firms and multinationals vie for a very limited supply of prime space.

After seeing an average 1.4% increase in costs in Q2, North American cities saw costs grow by 0.6% in Q3, with most of this rise driven by rental increases. Again, Savills reports there is some variation in the region: San Francisco saw costs grow 1.5 % this quarter, fuelled by AI companies seeking the best space, while Toronto saw a decline of -2% due to heightened vacancy levels and increased sublease availability; however, Savills says that this is providing opportunities for occupiers to upgrade into higher-quality space at more competitive terms, supporting longer-term market resilience.

There is slightly less variation in Europe and the Middle East, with no markets in its analysis seeing a decline in prime office costs this quarter, says Savills. Instead, they grew by an average of 0.9%, with Frankfurt seeing the largest regional quarterly increase of 3.6%, as a lack of large floorplates in prime buildings drove up rents on the available supply in the city. In the Middle East, multinational occupiers continued to compete aggressively for best-in-class space in Q3, according to Savills, keeping vacancy very low and costs trending upwards by 2.1% in Dubai, 2% in Riyadh and 1.6% in Cairo.

Rick Schuham, CEO of Global Occupier Services at Savills, comments: “For the last few years, we have seen prime office cost growth in many markets being largely driven by rising fit-out costs, as labour and construction supply inflation pushed up prices. With fit-out costs stabilising, rising rents primarily drove the rise in Q3 office costs.  Across the globe, the picture is broadly one of very limited supply of prime space, combined with increased – and growing – occupier demand, which is giving landlords the confidence to raise rents.”

Sarah Brooks, Associate Director in Savills World Research team, adds: “Rental growth on prime offices slowed in 2024 amid economic uncertainty, ongoing right-sizing, and higher interest rates, but it has re-accelerated again this year. Today, rents are climbing more sharply in EMEA compared to North America, while across Asia Pacific prime office markets are showing a clear divergence in gross rent trends. When including mainland China and Hong Kong, regional prime office rents have declined by -5.9% since Q1 2020, however, excluding these markets reveals that the remaining APAC cities recorded an average 8.6% increase in prime rents in the last five years.”

Read Savills Prime Office Costs Q3 2025 report in full here

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Notes to Editor

*Prime is used to describe the very top tier of Grade A office space in a market, typically the office space demanding the highest 5-10% of rents in that market: the term is more commonly used in EMEA and APAC with the term ‘trophy’ preferred to describe the same space in North American markets. Grade A offices are the most modern offices, typically brand new space or very recently refurbished offices that offer the highest amenities and facilities, strong sustainability credentials, advanced infrastructure and are in a central location.

Savills 'Global Occupier Markets: Prime Office Costs’ presents a quarterly snapshot of occupancy costs for prime office space throughout the world, as provided by our expert, local tenant representation professionals and researchers. The adjusted annual all-in occupancy cost represents real-time transaction terms for 20,000 sq ft (2,000 sq m) of usable space based on a basket of the top five most expensive properties to calculate prime average.

All costs are reported in a standardised format of USD per sq ft of usable space per annum at a fixed exchange rate to account for variations in currency, reflect local payment protocols, and adjust for measurement practices across the globe. We have also factored in the credit value to the tenant generated from abated rent and the cost associated with fitting out the premises in order to provide an ’all in’ total occupancy cost in USD per usable square foot. The fit-out costs were gathered from local Savills teams assuming the leasing scenario described above, plus the following: i) 30% cellularisation with the remainder of space open plan, ii) construction and cabling only (no furniture or professional fees). Data as of 24 October 2025.