The Savills Prime Office Cost (SPOC) Index presents a quarterly snapshot of occupancy costs for prime office space throughout the world as provided by expert, local tenant representation professionals.

1. 1
Overview
2016's turbulent geopolitical referendums rippled throughout
many industries including real estate. Resulting currency
exchange volatility impacted the Savills Prime Office markets
and subsequent costs for global occupiers.
The Savills Prime Office Cost Index (SPOC) presents total
occupancy costs in USD per Usable Square Foot (USF)
for Class A office space across 20 global markets. At the
close of 2016, the majority of SPOC markets were down in
overall costs (as measured in USD) due to USD appreciation.
Additionally, cities with strong commodity ties such as
Houston and Mexico City experienced amplified downside.
SPOC Index Year End Results
n 15 of 20 cities went down in cost as measured in USD/USF
during 2016
n London (-18.12%), Houston (-17.12%) and Mexico City
(-15.51%) saw the most significant declines
n The only (4) cities that increased in cost (Mumbai,
Hong Kong, Shanghai and Seoul) were located in AsiaPac
Savills Prime Office Cost Index
Q4 2016
Prime Office Market 2017 Americas AsiaPac EMEA
Very favorable market for tenants 12% 18% 18%
Favorable market for tenants 40% 36% 32%
Neutral 26% 0% 31%
Favorable market for landlords 23% 18% 19%
Very favorable market for landlords 0% 27% 0%
Global Tenant Rep Survey Results
n Hong Kong and Tokyo are forecasted to be “very
favourable” to landlords
n Frankfurt, Houston, London and Washington DC are
forecasted to be “very favourable” to tenants
n The “war for talent” is forecasted to be the number one
trend for 2017
n The “TAMI” sector (Technology, Advertising, Media,
Information) is forecasted to make the most significant
impact across SPOC markets
n WeWork is the most frequently mentioned tenant that
will make a significant impact across SPOC markets
*data from June – December 2016
See appendix for detailed breakdown of total occupancy cost.
1 Hong Kong $252.74 3.32%
2 London
(West End)
$206.68 -18.12%
3 Tokyo $179.95 -1.57%
4 Singapore $128.03 -2.75%
5 Shanghai $125.39 0.87%
6 Paris $115.90 -5.05%
7 Seoul $113.39 6.95%
8 New York
(Midtown)
$105.82 -4.43%
9 San Francisco $102.46 -4.50%
10 Mumbai $99.09 3.34%
11 Washington DC $90.64 -2.91%
12 Dublin $81.38 -5.86%
13 Frankfurt $66.72 -4.66%
14 Chicago $66.16 0.00%
15 Amsterdam $57.87 -8.20%
16 Mexico City $54.96 -15.51%
17 Los Angeles
(Downtown)
$52.71 -2.78%
18 Brussels $51.67 -5.90%
19 Houston $48.98 -17.12%
20 Toronto $48.68 -2.37%
TotalOccupancy
CostUSD/USF
Year-Over-Year
City
Rank
*
*
*
Perhaps the only certainty is continued uncertainty as
populist and nationalistic referendums continue to redefine
the geopolitical landscape in 2017. However, in an effort to
extrapolate key drivers influencing the prime office market,
we polled our leading tenant rep advisors in each of the 20
SPOC global markets to ask their insights and forecasted
trends for 2017.

2. 2
Key Industry Driver
In the survey, we asked our brokers which industry
would most impact their respective markets in
2017. In every region, the TAMI sector led the pack.
During the early 2000s TAMI occupiers traditionally
leased non-prime space, but the sector is now
viewed as the most important industry sector
impacting prime office markets. This significant
change reflects the differences in the post global
financial recession economy v. economy of the
early 2000s.
Main Occupancy Trend
We asked our brokers to identify the key
occupancy trends in their market. Virtually all
recognize “war for talent” and “impact of co-
working” as important to SPOC markets; only
EMEA and AsiaPac brokers listed occupant
health and wellness as a relevant trend.
Talk of the Town
We asked brokers to name the tenant expected
to drive conversation in the year ahead. By a
resounding margin, our brokers named WeWork.
Many global tenant reps also noted WeWork’s
impact on the “War for Talent;” high performing
talent is being drawn to WeWork as a way to
quickly gain global organizational leverage while
pursuing an entrepreneurial career.
As a result, occupiers are re-assessing the
way they think about workplace in order to
stay competitive.
WeWork
Google
FacebookFreshfields
Apple
European Institutions
Blackrock
Thomson Reuters
Clifford Chance
HewlettPackard
US Gov't
Comcast
Uniqlo
Clifford Chance
BakerMcKenzie
Amazon
WPP
Sumitomo
Booking.com
Chevron
Exxon
TimeWarner
Comcast
NIKE
General Electric
BNPParibas
Conoco
SnapChat
Salesforce
Bank of America
Amore Pacific
Broadcom
Netflix
Mitsubishi
Sumitomo
Mitsui
Sabadell
HoganLovells
Context Media
BanksFinancialFirms
McDonalds
Exxon PWC
Expedia
2016 brought significant political, technological,
and economic change. Our clients relied heavily on
Savills’ local expertise to continue to execute and act
with confidence during these periods of uncertainty.
We believe our unique tenant perspective will
continue to benefit our global clients and during
2017 we will continue to invest in our businesses
globally to ensure that we provide our clients at all
times with advice of the very highest quality.
* IoT – Internet of Things
Jeremy Helsby Group Chief Executive
“
“
Could Americas learn something from AsiaPac and EMEA re: talent retention strategies?
TAMI moving to prime space across all regions
WeWork: the global tenant rep conversation du jour
38.24%
Americas Americas
Asia Pac Asia Pac
EMEA EMEA
8.82%
11.76%
17.65%
23.53%
40.24%
13.41%
58.33%
40.12%
9.94%
9.96%
20.24%
19.74%
33.33%
8.33%
12.20%
12.20%
12.20%
4.88%
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
12.23%
12.77%
38.24%
Americas Americas
Asia Pac Asia Pac
EMEA EMEA
8.82%
11.76%
17.65%
23.53%
40.24%
13.41%
58.33%
40.12%
9.94%
9.96%
20.24%
19.74%
33.33%
8.33%
12.20%
12.20%
12.20%
4.88%
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
12.23%
12.77%
38.24%
Americas Americas
Asia Pac Asia Pac
EMEA EMEA
11.76%
17.65%
23.53%
40.24%
13.41%
58.33%
40.12%
9.94%
9.96%
20.24%
19.74%
33.33%
8.33%
12.20%
12.20%
12.20%
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
12.23%
12.77%
Government
Government
Health/Bio
Co-Working
Co-Working
Financial Services
Financial Services
Financial Services
Legal
Legal
TAMI
TAMI
TAMI
Energy
38.24%
Americas Americas
Asia Pac Asia Pac
EMEA EMEA
8.82%
11.76%
17.65%
23.53%
40.24%
13.41%
58.33%
40.12%
9.94%
9.96%
20.24%
19.74%
33.33%
8.33%
12.20%
12.20%
12.20%
4.88%
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
12.23%
12.77%
Americas Americas
Asia Pac Asia Pac
EMEA EMEA
17.65%
23.53%
13.41%
58.33%
40.12%
9.94%
9.96%
20.24%
19.74%
33.33%
8.33%
12.20%
12.20%
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
12.23%
12.77%
Asia Pac
EMEA
20.
33.3
51.35%
39.72%
40.32%
9.68%
10.28%
23.65%
Talent
Talent
Talent
Occupant Health
Data analysis
IoT
IoT
Co-Working
Co-Working
Co-Working
Occupant Health
Mobility
Mobility

3. 3
CHICAGO
Ranking 14
Prime Office
Forecast
Occupancy
Trend
Talent
Talk of
the Town
Bank of America
Sector Driving
Demand
TAMI
SAN FRANCISCO
Ranking 9
Prime Office
Forecast
Occupancy
Trend
Talent
Talk of
the Town
Google
Salesforce
Sector Driving
Demand
TAMI
HOUSTON
Ranking 19
Prime Office
Forecast
Occupancy
Trend
Talent
Co-Working
Talk of
the Town
Chevron
Exxon
Conoco Phillips
Sector Driving
Demand
Energy
TORONTO
Ranking 20
Prime Office
Forecast
Occupancy
Trend
Co-Working
Talk of
the Town
Thomson
Reuters
Sector Driving
Demand
Financial
Services
LOS ANGELES
Ranking 17
Prime Office
Forecast
Occupancy
Trend
IoT
Talent
Talk of
the Town
Warner Music
Snapchat
Google
Sector Driving
Demand
TAMI
WASHINGTON DC
Ranking 11
Prime Office
Forecast
Occupancy
Trend
Mobility
Co-Working
Talk of
the Town
US
Government
Sector Driving
Demand
Government
MEXICO CITY
Ranking 16
Prime Office
Forecast
Occupancy
Trend
Data analysis
Talk of
the Town
Sabadell
Sector Driving
Demand
Energy
High performance companies leverage talent as a competitive
advantage. The right location, culture, and work environment
enhance the advantage. Our thought leadership ensures
these key attributes are aligned for our clients.
2017 will likely represent an inflection point in the current real
estate cycle, as a slowing in employment growth – coupled
with the continued move toward space efficiency – weigh on
demand. In cities like Manhattan, where the new supply pipeline
is particularly robust, tenants will be able to extract savings
by fine-tuning their occupancy needs. Rising interest rates will
mean higher borrowing and financing costs for developers and
owners, which will make the opportunity cost of vacant space
that much more expensive. As a result, we expect that the
balance of power will be firmly on the side of the tenant.
Mitchell Steir
Michael Colacino
Chairman CEO – Savills Studley
President – Savills Studley
#correction_is_coming #calm_before_the_storm #proceed_with_caution #the_upside_down #oil_tanks_rents #space_shrink
A Year in Hashtags: Our Brokers on #CRE2016
NEW YORK
Ranking 8
Prime Office
Forecast
Occupancy
Trend
Talent
Co-Working
Talk of
the Town
WeWork
Blackrock
Sector Driving
Demand
TAMI
AMERICAS
“
“
“
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$105.82
$52.71
$102.46
$48.98
$90.64
$48.68
$66.16 $54.96
Total Occupancy Cost
Tenant Favourable
Landlord Favourable
Neutral

4. 4
HONG KONG
Ranking 1
Prime Office
Forecast
Occupancy
Trend
Co-Working
Talk of
the Town
BNP Paribas
UBS
Sector Driving
Demand
Financial
Services
SINGAPORE
Ranking 4
Prime Office
Forecast
Occupancy
Trend
Co-Working
Talk of
the Town
Google
UBS
Sector Driving
Demand
TAMI
SEOUL
Ranking 7
Prime Office
Forecast
Occupancy
Trend
Occupant health
Talk of
the Town
Amore Pacific
PWC
Sector Driving
Demand
Legal
MUMBAI
Ranking 10
Prime Office
Forecast
Occupancy
Trend
Talent
Talk of
the Town
HP
Sector Driving
Demand
TAMI
TOKYO
Ranking 3
Prime Office
Forecast
Occupancy
Trend
Talent
IoT
Talk of
the Town
Mitsubishi
Sumitomo Group
Sector Driving
Demand
Financial
Services
SHANGHAI
Ranking 5
Prime Office
Forecast
Occupancy
Trend
Occupant health
Co-Working
Talk of
the Town
Domestic
financial services
Sector Driving
Demand
Financial
Services
ASIA PAC
As international trade agreements and currencies fluctuate, South East Asian
leasing markets are likely to remain subdued, with demand most likely driven by
regional businesses focused on building domestic market share. Key industry
drivers will continue to be sectors more readily suited and compliant with local
business regulations and restrictions such as finance, banking and insurance.
Vacancy rates of sub-2% across Tokyo’s Grade A office market has limited
property options for larger tenants. While that trend is set to continue through
H1 2017, a slate of new developments coming to market in 2018-2019 will
change the game with rents likely to soften as landlords look to attract tenants
to newly completed projects.
Christopher Marriott Chief Executive Officer (South East Asia)
Christian Mancini Chief Executive Officer (Northeast Asia)
#rent_reduction #no_relocation_leverage #landlord_market #rentspike #no_ClassA_need_PlanB #no_space #turbulent #sky_high_rents
“
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A Year in Hashtags: Our Brokers on #CRE2016
$252.74
$113.39
$179.95
$99.09
$128.03 $125.39
Total Occupancy Cost
Tenant Favourable
Landlord Favourable
Neutral

5. 5
BRUSSELS
Ranking 18
Prime Office
Forecast
Occupancy
Trend
Mobility
Talk of
the Town
European
Institutions
Sector Driving
Demand
Government
FRANKFURT
Ranking 13
Prime Office
Forecast
Occupancy
Trend
Talent
Talk of
the Town
Clifford Chance
Hogan Lovells
Baker McKenzie
Sector Driving
Demand
Legal
EMEA
AMSTERDAM
Ranking 15
Prime Office
Forecast
Occupancy
Trend
Talent
Talk of
the Town
Booking.com
Sector Driving
Demand
TAMI
LONDON
Ranking 2
Prime Office
Forecast
Occupancy
Trend
Co-Working
Talk of
the Town
Expedia
Freshfields
Sector Driving
Demand
TAMI
Legal
DUBLIN
Ranking 12
Prime Office
Forecast
Occupancy
Trend
Co-Working
Talk of
the Town WeWork
Sector Driving
Demand
TAMI
PARIS
Ranking 6
Prime Office
Forecast
Occupancy
Trend
Occupant Health
Talk of
the Town WeWork
Sector Driving
Demand
Financial
Services
Low vacancy rates are restricting options for Central London tenants. The
upcoming Crossrail and HS2 initiatives, along with increased office development
activity, are compelling occupiers to consider moving operations to UK regional
markets to accommodate growth.
Jeremy Bates Executive Director – Savills UK
The most critical element for occupiers in major European cities and its regional
conurbations will be firmly focused on the catchment demographics, and the
ability to attract professionals with the right skillset.
Mark Ridley Chief Executive – Savills UK and Europe
#CRExit #dont_believe_the_hype #balancing_act #booming #uncertainty #disrupt_your_office_space #talent_trumps_space #tech_to_the_rescue
“
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A Year in Hashtags: Our Brokers on #CRE2016
$206.68
$57.87
$115.90
$51.67
$81.38 $66.72
Total Occupancy Cost
Tenant Favourable
Landlord Favourable
Neutral

6. 6
Rank Position
Change
QTR
%
Change
City Headline
Occupancy Costs
(Rent+Maintenance+
Taxes)
USD / USF
Credit
Value
of Abated
Rent
USD / USF
Amortised
Cap Ex
by Tenant
(Per USF per annum
of lease term)
USD / USF
Total
Occupancy
Cost
(Per USF per annum
of lease term)
USD / USF
Standard
Lease Term
(excluding
termination /
renewal options)
Abated Rent
per year of
Lease Term
(months)
Local
Efficiency
Factor
Tenant Rep Fee Structure
Direct: Paid direct by tenant
Lease: Financed through lease
by tenant
1  0.00% Hong Kong $240.80 ($11.94) $23.89 $252.74 6.0 0.67 1.11 Lease: New
Direct: Renewal
2  -6.58% London
(West End)
$218.71 ($24.30) $12.27 $206.68 10.0 2.00 1.00 Direct: New Renewal
3  -11.16% Tokyo $136.92 ($5.87) $48.90 $179.95 5.0 0.60 1.11 Direct: New Renewal
4  -4.88% Singapore $92.22 ($5.51) $41.32 $128.03 3.0 1.00 1.18 Lease: New
Direct: Renewal
5  -3.47% Shanghai $102.55 ($7.89) $30.73 $125.39 3.0 1.00 1.43 Lease: New
Direct: Renewal
6  -5.99% Paris $115.17 ($16.85) $17.57 $115.90 6.0 2.00 1.33 Direct: New Renewal
7  -3.76% Seoul $91.20 ($16.39) $38.58 $113.39 5.0 3.00 2.00 Direct: New Renewal
8  -4.43% New York
(Midtown)
$106.16 ($10.62) $10.27 $105.82 10 1.20 1.37 Lease: New Renewal
9  -4.50% San Francisco $95.00 ($3.17) $10.63 $102.46 10.0 0.40 1.25 Lease: New Renewal
10  -1.13% Mumbai $82.14 ($1.42) $18.38 $99.09 9.0 0.22 1.54 Direct: New Renewal
11  -2.91% Washington DC $92.13 ($7.68) $6.18 $90.64 10.0 1.00 1.12 Lease: New Renewal
12  -5.10% Dublin $76.06 ($3.19) $8.51 $81.38 10.0 0.60 1.00 Direct: New Renewal
13  -5.10% Frankfurt $62.79 ($5.37) $9.30 $66.72 5.0 1.20 1.18 Lease: New Renewal
14  0.00% Chicago $66.27 ($5.52) $5.42 $66.16 10.0 1.00 1.20 Lease: New Renewal
15  -5.10% Amsterdam $51.20 ($5.19) $11.86 $57.87 5.0 1.80 1.00 Direct: New Renewal
16  -5.74% Mexico City $41.07 ($1.76) $15.65 $54.96 5.0 0.60 1.05 Lease: New Renewal
17  0.00% Los Angeles
(Downtown)
$54.22 ($4.52) $3.01 $52.71 10.0 1.00 1.20 Lease: New Renewal
18  4.32% Brussels $44.18 ($4.14) $11.63 $51.67 6.0 1.50 1.18 Direct: New Renewal
19  -3.87% Houston $50.00 ($5.00) $3.98 $48.98 10.0 1.20 1.14 Lease: New Renewal
20  0.61% Toronto $46.73 ($1.95) $3.89 $48.68 10.0 0.50 1.14 Lease: New Renewal
1
1
Methodology
The adjusted annual total occupancy quote represents
real-time transaction terms (“comps”) for 20,000 sq ft
(2,000 sq m) of usable space with in a prime asset with
i) a stable capital stack, ii) institutional quality ownership,
and iii) a quality location in the core business district for
each city featured. All costs are reported in an annual,
standardized format of USD per sq ft of usable space to
“level set” variations in currency, reflect local payment
protocols, and adjust for measurement practices across
the globe.
We have also factored in the credit value to the tenant
generated from abated rent for each market and the
cost associated with fitting out the premises in order
to provide an “all in” total occupancy cost in USD per
usable square foot.
The fit out costs were gathered from Savills project
managers assuming the same leasing scenario described
above plus the following: i) 30% private offices with the
remainder of space open plan / communal, ii) construction
and cabling only (no furniture or professional fees).
20 Cities Power Ranking: Prime Office Cost Index-Q4

7. Patrick McGrath
Head of Cross Border Transactions
Americas
(212) 326-8665
pmcgrath@savills-studley.com
Will Butler
Managing Director
International Desk
(212) 326-8604
wbutler@savills-studley.com
Key Market Contributors
Savills iTeam
AMERICAS ASIA PAC EMEA
Chicago
Eric Feinberg
Senior Vice President
+1 (312) 595-2904
efeinberg@savills-studley.com
Los Angeles
Josh Gorin
Senior Vice President
+1 (213) 553-3855
jgorin@savills-studley.com
Mexico City
Mauricio Lozano
Vice President
+52 (55) 5282-0926
mlozano@savills.com
New York
Zev Holzman
Corporate Managing Director
+1 (212) 326-8662
zholzman@savills-studley.com
Toronto
Stan Krawitz
Executive Vice President
+1 (416) 822-9636
skrawitz@savills-studley.com
Washington DC
Tom Fulcher
Executive Vice President
+1 (202) 624-8527
tfulcher@savills-studley.com
Hong Kong
Julian Milne
Director
+852 2842 4224
jmilne@savills.com.hk
Mumbai
Bhavin Thakker
Director
+91 98200 19010
bthakker@savills.in
Seoul
Stef Potgieter
Regional Co-Ordinator, Tenant Representation
+82 2 2124 4118
spotgieter@savills.co.kr
Shanghai
Yann Deschamps
Director
+86 1560 1828 291
yann.deschamps@savills.com.cn
Singapore
Marcus Loo
Executive Director
+65 6415 3893
marcus.loo@savills.com.sg
Tokyo
Gus Hayward
Associate Director
+81 03 6777 5189
ghayward@savills.co.jp
Amsterdam
Erik Beekman
Director
+31 (0) 20 301 2040
e.beekman@savills.nl
Dublin
Michael Healy
Divisional Director
+353 1 618 1367
michael.healy@savills.ie
London
Paul Bennett
Director
+44 (0) 20 7409 8946
pjbennett@savills.com
Paris
Serge Vayer
Associate Director
+33 (0) 1 44 51 50 28
svayer@savills.fr
Brussels
Henry Colle
Associate Director
+32 (0) 254 24 054
hcolle@savills.be
Frankfurt
Benjamin Remy
Director
+49 69 273 00034
bremy@savills.de
London
Freddie Corlett
Associate Director
+44 (0) 20 7409 8764
fcorlett@savills.com
Houston
Jim Bell
Managing Director
+1 (713) 237-5501
jbell@savills-studley.com
Los Angeles
Andy Lustgarten
Coporate Managing Director
+1 (213) 553-3812
alustgarten@savills-studley.com
New York
Jarod Stern
Corporate Managing Director
+1 (212) 326-8654
jstern@savills-studley.com
San Francisco
Matt Hart
Executive Managing Director
+1 (415) 617-9641
mhart@savills-studley.com
Toronto
Paul Kay
Vice President
+1 (416) 480-0745
pkay@savills-studley.com
In 2017, the major concern of fast-growing enterprises across the globe will
continue to be to attract human capital. We expect that rents will continue to
grow in sought-after ‘live work and play’ neighbourhoods. Consequently, in
the best world cities, the rent gap will close between offices termed ‘prime
class A’ and more flexible, unconventional workspaces located in these
desirable neighbourhoods.
Yolande Barnes Director – World Research
“
“