Prime office occupancy costs rise globally amid expansion trends

Global occupancy costs for prime office spaces, including rent and fit-out expenses, rose by 1% in the second quarter of 2026, bringing year-on-year growth to 5.3%, according to the Savills Prime Office Costs index.

Regional trends varied, with North America seeing the highest quarterly increase at 2.1%, while the EMEA and Asia-Pacific regions experienced more moderate growth of 0.5% each.

Data shows that 58% of total contracts in the first half of the year were space expansions, indicating a trend of companies pursuing growth strategies within high-quality buildings. Conversely, only 5% of operations involved surface area reductions, while renovations or relocations without significant size changes dropped to 37%.

Demand remains concentrated in premium buildings with superior amenities, maintaining upward pressure on costs in exclusive segments. The influence of technology and artificial intelligence companies is intensifying competition for top-tier spaces in major cities such as San Francisco, London, and Shenzhen.