Savills says 23 of the 40 global cities it monitors saw net effective ‘all-in’ occupier costs (rent plus fit-out costs) increase an average of 1.1% between Q3 and Q4 2025, with Mumbai (8.0%) and Miami (7.2%) seeing the sharpest quarter-on-quarter cost growth driven by tight supply and steady demand.

Overall, prime office leasing volumes rose 1.7% globally in H2 2025, says Savills, with 50% of these transactions involving occupiers expanding, 44% maintaining square-footage, and just 6% involving reducing space. The finance sector remained the most active industry globally by deal count in 2025, with Hong Kong seeing the most deals in the sector over H2, the majority of which were expansionary. The technology, advertising, media, and information (TAMI) sector was the second most active industry, with deal volumes increasing by 7% in H2 2025, largely driven by momentum in the AI sector, according to Savills.

In Asia Pacific, average net effective costs for prime offices rose 1.1% in Q4. Savills says that most cities saw significant increases, but declines in Chinese cities brought the average down. In North America, costs rose 1.2% in Q4, with Miami the standout performer, while other US cities also saw moderate increases, driven by gross rent increases and slight declines in landlord concessions.

Prime offices in Europe and the Middle East, also experienced a 1% average increase in net costs across Q4 with strong demand and low development completions in London’s West End driving a 4.2% rise in that market. Dubai saw prime office costs increase 1.7%, although Savills says that rents on some short-term leases for Grade B space are currently up to 77% higher than long-term leases for prime space due to landlords seeking to benefit from a short period of very constrained availability ahead of new supply coming onstream.

Rick Schuham, CEO of Global Occupier Services at Savills, comments: “International demand from a broad array of occupiers for best-in-class offices, combined with limited changes to landlord incentives, reinforced premium pricing in major markets in the latter months of 2025. We anticipate that 2026 will be another year of increasing occupier costs in premium locations, due to continued demand across several major sectors and an ongoing lack of development in most markets.”

Sarah Brooks, Associate Director in Savills World Research, adds: “The vast majority of occupiers taking prime office space in the second half of 2025 were expanding or maintaining their footprints, suggesting confidence in the role of the office in their future workplace strategies. Financial services and TAMI industries were the most active occupiers in the prime segment of the market by a wide margin in the latter half of last year, although the pace of their expansion could suggest some possible volatility over the medium-term. Fortunately, other traditional sectors, such as professional services and legal, have continued to be active, albeit at a relatively lower level across most markets, thereby providing a more stable base of demand.”