The world’s priciest office markets are seeing a shift as trophy and Class A properties attract renewed investment attention. With these top-tier buildings in high demand, the costs facing tenants are emerging as a key battleground for competitive distinction. According to Savills’ latest analysis, prime office costs climbed 0.7% quarter-over-quarter and 3.4% year-over-year in the second quarter of 2025, propelled by increases in gross rents and fit-out expenses.
This global cost uptick is not uniform. Of the 38 office markets analyzed by Savills, 24 experienced higher net occupier costs in Q2, with North America leading the charge. Eleven North American markets registered increases—10 in the U.S. and one in Canada. Notably, midtown New York saw costs rise 1.6%, Miami jumped 3.4%, Boston climbed 0.9% and Toronto posted a 1.7% gain. Meanwhile, San Francisco, Los Angeles (Century City) and Chicago rents held steady quarter-over-quarter.
North America as a whole posted the steepest regional increase, with a 1.4% quarterly rise in occupier costs fueled by robust demand for premium office space. Miami stood out with the highest occupancy levels among major U.S. markets, reflecting a broader trend of corporate migration to Florida in recent years, according to Savills. Although relocations are slowing domestically, the appetite for high-quality space in prime urban centers remains intense.
By contrast, Asia Pacific markets were largely flat in Q2, though regional specifics diverged. Chinese cities recorded a decline in occupier costs of -2.5%, while Kuala Lumpur and Melbourne rose by 4.4% and 3.4%, respectively. In Europe and the Middle East, net occupier costs ticked up 0.8%, a continuation of past trends. Paris, Milan and Prague all registered gains above 2%, with Prague leading at 3.1% due to a constrained pipeline of new developments.
Technology is increasingly shaping market dynamics as well. Proptech advancements are helping landlords improve the environmental efficiency of buildings and enabling new, service-oriented forms of differentiation. Still, according to industry respondents in the Savills report, most believe these innovations will only moderately curb service charge growth. Many landlords face upfront costs for implementing such systems, and in some cases, these expenses may filter through to tenants via higher charges or rents.
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