MAJOR TRENDS
Shaping occupier decisions across global fit-out markets in 2026.
At the core of these trends is the clash between the fast-moving corporate occupier world and the comparatively slow reality of development.
While clients’ fit-out approach must respond to complex challenges like the growth of AI and shifting expectations of what an office provides for employees, we’re also at a crunch moment for Grade-A stock, following the period of paused development during and immediately following the pandemic. This is limiting options in many markets, and meaning occupiers need to think carefully about the decisions they’re making.
Across all regions, the strong competition for talent in industries like finance and tech, is leading to a drive to spend more than ever on high-quality fit outs. The percentage uplift at each specification is significant as a result. Average global fit-out costs rise 27 percent from low to medium specification, and a further 31 percent to the highest-level projects. For the global top ten, this averages at a cost of more than US$5,000 per m2 for high-specification fit outs.
The focus on quality is wholesale – from the premium materials used to the overall mindset shift towards commercial space that is experience-led and focused on amenities and staff wellbeing.
The impact on the lower end of the fit-out market is equally interesting. As remote working options grow, and offices compete with home comforts, even low-specification fit outs must meet a minimum quality bar to attract staff. The alternative, as taken by some occupiers, is to move away from offices entirely, or to rely more heavily on co-working spaces, or to maintain a headquarters just for key purposes such as hosting clients. What’s clear is the low-quality, poorly considered, office is a thing of the past.
Making spaces work harder
In all cases, clients need to take a step back, focus on the fundamentals, and assess how to make spaces work harder to ensure value from their investments. Even if not considering a major office move or refit, it is important for clients to regularly assess their workplace needs and look for ways to drive operational efficiency, such as utilising technology to track headcounts and use of space.
When turning to a new fit out, if a high specification is non-negotiable, clients should look for places other than design and materials to keep costs low. This may include considering innovative delivery or construction models like off-site modular elements or design for construction. For global firms, it also remains essential to be able to accurately compare costs across regions, to ensure portfolios are being effectively managed, and that fit outs in international markets play to the local strengths of each region.
More commercial stock is expected to come on stream in many key cities in the next three to five years. Many clients are looking for advice on whether to stay or go far in advance of any decision being taken.
The choice is three-way – between paying higher rates now in the market peak for new high-quality space; investing in refurbishing existing facilities to stay long-term; or negotiating favourable rates to remain in the same space, despite it no longer suiting all needs.
Below we summarise the decision pathway and key considerations.
The impact of Artificial intelligence (AI) is no longer a future prospect – it is already altering how we live and work, with its impact only set to increase. As this trend continues, AI is actively redefining how occupiers execute their real estate portfolios.
While every client is at a different stage of maturity, we’re helping businesses peel back the layers of understanding and realise both the incredible opportunities of AI, and the practical systems and processes that will be needed to underpin their implementation.
Unlocking the value of AI in capital delivery
While some organisations proceed cautiously, limiting AI transformation to business administration and back-of-house operations, true market leaders are flipping this on its head to embed AI directly in the foundations of capital delivery. These more advanced clients, particularly the major technology companies, are already well on the journey and are learning lessons which can be transferred to other sectors.
Ultimately, AI should drive a step change in efficiency and quality of capital delivery, unlocking value, accelerating schedules, identifying risks and offering better data and analysis to help to solve or mitigate them. Through AI, businesses can de-risk the fit-out process, get more value from their space relative to investment, and provide the next-generation office space that workers need to thrive.
Where can AI integration be most transformative?
To navigate the rapidly evolving landscape, and to maximise the benefits of AI in the fit-out market, Turner & Townsend has created a bespoke assessment model of digital maturity – helping clients go through a five-step strategic process to understand the most impactful ways to accelerate AI adoption.
Below we summarise the decision pathway and key considerations.
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