The occupancy costs of top-tier offices, or 'prime', increased globally by 1% in the second quarter of 2026 and by 5.3% year-on-year, reaching 703.09 euros per square meter in Madrid, according to Savills' announcement this Monday.
These 'prime' office costs, which encompass both rents and fit-out expenses, recorded a quarterly increase of 2.1% in North America and 0.5% in Europe, the Middle East and Africa (EMEA) and Asia-Pacific, according to the 'Prime Office Costs' index prepared by the firm.
In the first half of the year, 58% of the transactions corresponded to surface expansions by companies, a movement that Savills associates with the growing number of firms opting for growth and expansion strategies in higher quality properties. Meanwhile, renewals or relocations without significant changes in space dropped to 37% (down from 44% in the second half of 2025) and only 5% of the analyzed transactions responded to reductions in space.
The consultancy highlights that companies continue to concentrate their demand in better-located buildings with greater amenities, which maintains upward pressure on occupancy costs in the most exclusive segments of the market globally, although some are beginning to show some "moderation," particularly pointing to China.
It also indicates that artificial intelligence (AI) was responsible for 17% of the large transactions closed during the first half of 2026 globally by the technology sector --up from 3% two years earlier-- driven by the strong growth of the sector, the high volume of capital investment, and increased competition for specialized talent, which in all cases translates into space expansions.
In this regard, Savills emphasizes in a note that the "growing influence" of technology and artificial intelligence companies "intensifies the competition for the best spaces" in cities like San Francisco, London, or Shenzhen, which, in its view, reflects "the long-term commitment of these companies to iconic offices that help strengthen their brand, attract talent, and improve relationships with clients."
If this dynamic continues, the firm expects that the artificial intelligence sector will become "an increasingly relevant engine" for the demand for 'prime' offices in a growing number of international markets.
On the other hand, Savills points out that flexible space operators have positioned themselves as the most expansive segment in the first half of the year, with 78% of operations aimed at increasing space and more than half in new locations within cities where they were already present. Following them are finance (65%) and the 'life sciences' sector (63%).
From 3,085 euros/m2 in London to 338 euros in Johannesburg
According to Savills' analysis, which studies the ten main office rental operations in key markets of 47 cities, London (West End) tops the index, with a cost of 'prime' offices of 3,085.01 euros per square meter.
Next are Hong Kong, with 2,126.09 euros/m2; Tokyo, with 2,068.68 euros/m2; New York (Midtown), with 1,988.96 euros/m2, and London (City), with 1,920.32 euros/m2.
Madrid ranks in 35th place, with a cost of 703.09 euros per square meter, while Johannesburg closes the ranking, with 338.32 euros/m2.