Global uncertainty has dominated the narrative through 2022, producing inflation, volatility, and rising costs for occupiers. Inflation has been the key story for the year, both for individuals and also for firms looking to take up office space. Supply chain disruption and rising costs for materials and labour are leading to higher fit-out costs and longer construction times, at a time when occupiers are looking to create dynamic spaces to attract and retain the best and brightest talent. The role and function of office spaces continue to be challenged and reimagined by real estate teams and business management, something that persists in creating uncertainty in office markets around the globe.

Against this background of global uncertainty and general caution, in the coming quarter the world looks to Egypt for the annual COP meeting in Sharm-el-Sheik. With the global consciousness once again turning to sustainability, questions such as how the built environment contributes positively to the cause once again come to the fore. The global property sector contributes nearly 40% to global carbon emissions, with significant untapped potential to increase sustainable outcomes across all sectors. For office occupiers, increased use of technology, monitoring and achieving energy savings, encouraging employees to use more environmentally friendly commuting methods, and occupying green-certified spaces can all help to lower carbon emissions and is an important and necessary step in achieving sustainability targets. The increasing focus on sustainability, particularly sustainable office spaces, is helping to contribute to the emergence of a green rental premium for environmentally friendly offices in key markets.

Each quarter, the Savills team of expert local tenant representation professionals and researchers present a snapshot of occupancy costs for prime office space across the global markets critical to our clients.

For this issue of Savills Prime Office Cost (SPOC) insights, we spoke with local tenant agents and sustainability professionals to gather market insights and understand how the drive towards sustainability and a greener economy is affecting occupier behaviour, and whether key locations are seeing a rise in green rental premiums from increased occupier demand.

_{Read the articles within Spotlight: Savills Prime Office Costs – Q3 2022 below.}