The cost of a luxury office today is 27% more than two years ago

While setting up a standard office costs € 586 per square meter, it costs € 836 for a premium room and € 1268 for a luxury office, which is further increased by the non-built-in costs, according to the CBRE guide. The world’s largest commercial real estate and investment company published the Fit-Out Cost Guide in 2021, which, in addition to the costs of new offices, describes in detail the most important aspects of the proper scheduling of construction projects and new work and work trends. .

New workplace and work trends following the pandemic
The epidemic has significantly reshaped employees ’attitudes to work, and as a result, companies are constantly looking for ways to improve their employee experience and reduce the company’s ecological footprint based on experience. When developing a new workplace strategy, the following important aspects need to be considered: the location of the work, the design of the office space, and a realistic consideration of the need for change.

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Over the past year, many companies have experienced the benefits of flexible working: 87 percent of large companies use the hybrid model, in which employees work in a shared office and home.

However, in order to develop a strategy, it is important to choose a model that meets the abilities, needs and tasks of the workers alike. According to CBRE research, the main benefit of office work, employees say, is the ability to meet in person, and an important consideration is that there is not necessarily an ideal area for working in a worker’s home. For this reason, employers need to keep in mind the needs of employees and different working methods in order to correctly determine the proportion of individual and shared work areas.

The long-term effects of new workplace trends cannot yet be determined, but employers can use a number of tools to minimize risk: examining models used by companies with similar profiles, objectively assessing employee needs and developing employees ’skills in the new work environment are effective ways to help in making long-term decisions.

From standard design to the luxury category

The CBRE guide summarized the essential elements of designing three office categories (standard, premium, luxury) and their costs. The most expensive elements of the design include building engineering work (which costs between € 180 and € 290 depending on the category) and building electrical and fire alarm system design work, which is almost the same for all three categories (€ 121, € 124 and € 126 per square meter, respectively). In terms of built-in appliances, the biggest difference can be observed in the case of lighting: the specific cost can be as low as € 16 for a standard office, € 78 for a premium office and up to € 195 for the luxury category.

Medium items include painting and wallcovering, suspended ceiling design, installation of glass and mobile partitions, false flooring (which is uniformly € 80 for each category), the cost of flooring and carpeting, and customized carpentry work tailored to customer needs. associated expenditure. The items with the lowest cost are the installation of doors and interior blinds, the cost of organization and cleaning, and the installation of plasterboard walls.-

In addition to design costs, the guide details tenant-specific costs and non-built-in costs: this includes the purchase of mobile furniture, the cost of setting up an audiovisual, access and IT network (televisions and communication devices), and design and expert fees. “Defining the three categories in the case of non-built-in costs as opposed to basic expenses is significantly more challenging, as they are more influenced by individual customer needs and preferences,” said László Harangi, Co-Director and Head of Project Management at CBRE Hungary. Comparing the publication two years ago and this year, it can be seen that since 2019, design costs for both non-built-in editions have increased by 27 percent for both the standard and luxury categories. “It is a general experience that the highest price increase can be observed in connection with high-value equipment, these include mechanical and electronic equipment and their design,” explained László Barangi Harangi.

The timing of projects is key to accurate cost planning

The most significant change is in the timeliness of the projects: while in 2019 the guiding schedule was 32 weeks from the preparation phase to commissioning, in 2021 the time interval for the entire project increased to 50 weeks, of which only 12 weeks is the typical implementation period. “Given the new workplace and work trends, it is recommended to plan for longer preparation periods in terms of scheduling and to start thinking together as soon as possible about the overall strategy and related specific factors: for example, how many tenants and floor space the tenant plans to use. working model and what type of building you prefer, ”László Barangi Harangi detailed. “In addition to defining the strategy, it is advisable to spend more time selecting the right building, designer and constructor, as well as construction and concept planning, in order to maximize the needs and perspectives of tenants and customers and meet the changing work environment trends.”

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In connection with the guide, it is important to add that CBRE has estimated design costs for offices with an average floor space of 1,000 m2 based on cost data for the third quarter of 2021. For long-term projects, significantly larger office space, and special client needs, project costs may differ significantly from the values ​​in the guide. “The purpose of our guide is to give you an overview of what to look for in the three most typical types of offices. Of course, there are needs and specifications that would be difficult to categorize into one of three categories. In such cases, it is advisable to turn to a specialist who can give appropriate advice on both cost and timing, ”added László Barangi Harangi.


Source: Ingatlanhírek by ingatlanhirek.hu.

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