Space expansions account for 58% of H1 prime office deals globally as market accelerates
Singapore remains among the world's top 10 most expensive prime office markets, underscoring its position as one of Asia-Pacific's leading business and financial hubs.
According to Savills' latest Prime Office Costs report, Singapore ranks 10th globally for annual net effective occupier costs, while Hong Kong and Tokyo remain Asia-Pacific's most expensive office markets. The findings come alongside Savills' latest Market Makers report, which shows that expansionary leasing accounted for 58% of major office transactions globally in the first half of 2026, signalling growing occupier confidence.
Global prime office leasing volumes remained stable in H1 2026, with expansionary deals accounting for 58% of all activity, indicating that more companies targeting the top-most tier of office space are moving into growth mode. Only 5% of top office deals involved occupiers reducing space, while the share relocating or renewing at a similar footprint fell to 37% in H1 2026, down from 44% in H2 2025.
In its H1 ‘Market Makers’ report, Savills examined the top 10 deals by size in 47 cities around the world *. Flexible office providers were the occupier group most likely to expand their space in the first half of 2026, with 78% of the deals representing expansions. More than half (56%) of these deals were for new office space within markets where they already have a presence, suggesting flex providers are deepening their footprint in selected cities.
AI companies are emerging as one of the fastest-growing occupier groups in the prime global office market. AI companies accounted for 17% of all prime technology sector deals in H1 2026, up from 3% just two years ago in H1 2024. Savills says that every single deal by an AI business in H1 2026 was expansionary, reflecting the sector's rapid growth, significant capital investment and the accelerating demand for talent. AI leasing activity remains heavily concentrated in a handful of established innovation clusters, dominated by San Francisco, but Seattle and London’s West End have also seen notable activity in the first half of the year.
Net ‘all-in’ prime office occupier costs (rent plus fit-out costs) rose by 1% in Q2 2026, bringing the year-on-year change to 5.3%, although there was regional variation, with rises of 0.5% in EMEA and Asia Pacific, and 2.1% in North America. In its Q2 Prime Office Costs report it says that cities with significant quarterly cost increases, include San Francisco (7.7%), Downtown New York (5.6%), Washington DC (4.0%), Seoul (3.8%), and Melbourne (3.6%).
The global findings are broadly consistent with trends observed in Singapore, where CBD Grade A office vacancy fell to 5.6%, reflecting continued demand for premium office space.
Alan Cheong, Executive Director, Research & Consultancy, Savills Singapore, said: "The preference for premium office space observed globally is also evident in Singapore, where the higher-grade office market remains resilient. Coupled with the limited supply of new office developments, premium office buildings continue to record healthy occupancy levels and rental growth. Leasing activity has also been supported by pockets of expansion demand from the financial services and hedge fund sectors."
Rick Schuham, CEO of Global Occupier Services at Savills, comments: "Organisations continue to prioritise premium offices, concentrating demand on the best buildings in the most desirable locations, and continuing to place upward pressure on costs. However, there are some notable markets witnessing a slowing pace of occupier cost growth for best-in-class offices, including primary markets in mainland China which are experiencing slower demand and increased availability as new developments and refurbishments complete. This new inventory is creating pockets of opportunity for businesses to access high-quality space at a more moderate cost. Understanding local supply dynamics alongside headline rental trends remains critical when making real estate decisions in today’s market."
Sarah Brooks, Associate Director in Savills World Research, adds: "The growing influence of AI and technology occupiers has been unmistakable in H1. In cities such as San Francisco, London and Shenzhen, demand from AI firms is rapidly absorbing high-quality space and intensifying competition for the most desirable offices as firms make significant long-term investments in flagship workplaces that support client engagement, attract talent and reinforce their brands. Assuming this trend continues, we may see the emerging sector becoming increasingly influential in other geographies as well."
Chart – Share of expansionary prime office deals by sector, H1 2026