According to the latest Savills Global Occupier Markets: Prime Office Costs – Q2 2025 report, the average cost of renting prime office space worldwide increased by 0.7% in the second quarter and by 3.4% year-on-year. The key factor remains the rising demand for top-tier offices that offer not only prestigious locations and high-quality finishes but also advanced technological solutions. Building owners today must invest in flexible office layouts as well as PropTech and AI technologies, which directly influence tenant comfort and property competitiveness.
Higher Costs, Higher Tenant Expectations
In Q2 2025, out of 40 major global office markets analyzed, 24 recorded an increase in prime office rental costs. The global 0.7% rise was driven by base rents (+0.9%) and fit-out costs (+0.8%). On an annual basis, costs rose by 3.4%, confirming sustained upward pressure in the top-tier office market.
– “Tenants today expect more than just a good location and a classic floor plan. They are looking for offices that genuinely support their daily operations—both technologically and organizationally. As advisors to landlords, we must think about how to make buildings tools that respond to the needs of hybrid teams, ESG requirements, certifications, and, at the same time, stand out with quality design and access to services,” says Daniel Czarnecki, Director, Landlord Representation, Savills Poland.
While rental growth in Warsaw was moderate at just under 0.5% quarter-on-quarter, prime office rents in the city center now reach up to EUR 28 per sq. m per month, with service charges exceeding PLN 40 per sq. m—highlighting the growing importance of quality and finish standards in the local market as well.
Fit-Out Costs Rising with Higher Standards
Rising fit-out costs are now a global trend. More companies are demanding “plug & play” solutions that include advanced IT infrastructure, flexible work zones, attention to acoustics, and features supporting employee well-being.
– “For landlords, what matters today is not only what’s visible at first glance but also how the building functions internally. Our role as technical advisors is to anticipate changing tenant needs at the planning stage and design space to be flexible, energy-efficient, and ready for future adaptations. Investments in technical standards directly enhance the building’s attractiveness—for both tenants and owners. Today, this is one of the surest ways to build long-term market advantage,” notes Jakub Jędrys, Director, Building & Project Consultancy, Savills.
Markets with the Highest Growth – Warsaw Remains a Competitive Alternative
The largest quarterly increases were recorded in Kuala Lumpur (+4.4%), Melbourne (+3.4%), Miami (+3.4%), and Sydney (+2.7%). Prague saw the steepest rise in Europe at +3.1%, driven largely by very limited new supply. In most cases, prime spaces are already leased, while in new projects, pre-let agreements are signed well before completion.
Against this backdrop, Warsaw stands out as one of the most cost-competitive office locations in Europe. The average annual cost of prime office space here is USD 40.39 per sq. ft., making it up to eight times lower than in cities such as London (West End – USD 312), Hong Kong (USD 225), or New York (Midtown – USD 203). At the same time, Warsaw offers a high standard of space: in the first half of 2025 alone, over 85,000 sq. m of modern office space was delivered, mainly in prime locations such as the Daszyńskiego Roundabout area.
Importantly, the volume of projects under construction in the capital has dropped to a record low of 140,000 sq. m, which may increase pressure on the best available spaces in the coming quarters. For landlords, this means greater demand for their assets, while tenants may have to make faster decisions if they want to secure offices in the most sought-after locations.
PropTech and AI Are Changing the Rules of the Game
Savills’ analysis highlights that PropTech technologies are becoming standard in prime offices. Building management systems, smart access, occupancy sensors, digitally controlled HVAC, and energy monitoring solutions are now common in mature markets. Increasingly, AI-based solutions are also gaining attention—from automated receptions and predictive maintenance to cleaning robots and platforms for personalizing the work environment.
The Asia-Pacific region leads in adopting such innovations, largely because many buildings there are designed with technology integration in mind from the outset.
Will Technology Reduce Management Costs? Not Immediately
The report stresses that introducing new technologies entails upfront costs in the short term, rather than immediate savings. 57% of surveyed markets expect service charges to increase over the next year—mainly due to inflation and rising energy and labor costs.
– “Technology has a huge impact on building management efficiency, energy savings, and user comfort. This, in turn, creates opportunities for closer integration of office property management with technical and commercial advisory, ensuring that prime office buildings meet not only the needs of today’s tenants but also those of future investors,” emphasizes Wioletta Nowotnik, Director, Head of Property & Asset Management, Savills.
Source: CEO.com.pl
