You are using an outdated web browser. For optimal user experience and to get the most out of this site, please view this on a newer browser. Or you can click here to download Google Chrome.

Colliers International | Global Occupier Guide

Search

Milan

IPMS

Space Measurement Standard
SQMT
SQFT
Space Unit of Measure

EUR

  • Convert currency to:
  • ALL - Albanian Lek
  • ARS - Argentine Peso
  • AUD - Australian Dollar
  • BRL - Brazilian Real
  • BGN - Bulgarian Lev
  • CAD - Canadian Dollars
  • CLP - Chilean Peso
  • CNY - Chinese Yuan Renminbi
  • COP - Colombian Peso
  • CRC - Costa Rican colón
  • HRK - Croatian Kuna
  • CZK - Czech Koruna
  • DKK - Danish Krone
  • EGP - Egyptian Pound
  • AED - Emirati dirham
  • EUR - Euro
  • HKD - Hong Kong Dollar
  • HUF - Hungarian Forint
  • INR - Indian Rupee
  • IDR - Indonesian Rupiahs
  • ILS - Israeli new shekel
  • JPY - Japanese Yen
  • KRW - Korean Won
  • MXN - Mexican Peso
  • MAD - Moroccan Dirham
  • TWD - New Taiwan Dollar
  • NOK - Norwegian Kroner
  • PAB - Panamarian Balboa
  • PEN - Peruvian Sol
  • PLN - Polish Zloty
  • GBP - Pound Sterling
  • RON - Romanian Leu
  • SAR - Saudi riyal
  • RSD - Serbian Dinar
  • ZAR - South African Rand
  • SEK - Swedish Krona
  • CHF - Swiss franc
  • THB - Thai Baht
  • TRY - Turkish Lira
  • UAH - Ukrainian Hryvnia
  • USD - US Dollars
Financial Data Currency

Yes

Transfer Taxes

Notes:

*No standard at the moment, but IPMS in the near future.

Office Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for skilled office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for office space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Typical Loss Factor

10-20%*

From rentable to useable square meters

Loss Factor Notes:

*10-20% as an average, but depends very much on building age and efficiency.

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Fit-Out Cost Notes:

Fit-out and personalization normally is paid by tenant. In specific cases the landlord (mostly in cases of new developments or heavy refurbishments) may provide a contribution for internal work that relate to structural parts of the premises - still subject to negotiation.

Rent-Free Period

The Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

3mo.-9mo.

Typical number of rent-free months.

Rent-Free Period Notes:

Subject to negotiation, but normally 1 month per each year of lease

Tenant Rep Broker Fee (New Leases)

The Tenant typically pays the tenant rep broker’s fee.

Payment of Fees/Commissions Notes:

Fees from LL only with exclusive mandate - Fees from tenant always due

Tenant Rep Broker Fee (Renewals)

The Tenant typically pays the tenant rep broker’s fee.

Payment of Fees/Commissions Notes:

Fees from LL only with exclusive mandate - Fees from tenant always due

Lease Provisions

Lease Term

6yrs.-12yrs.

Typical lease term in years.

Lease Term Notes:

Service charges paid separately.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

€35/sm-€50/sm

Estimated range for all additional charges per Square Meters.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Service charges include electric/cleaning only for common parts. Service charges include the HVAC if provided centrally in the building, as well as central receptionist at the building entrance. Building insurance is included but not the insurance that covers the activities of the tenant.







TARI (waste tax) linked to the number of employees (or sqm).







Own consumption costs to be paid separately. VAT to be paid separately on top. Lease registration tax to be paid by the tenant annually in the amount of 0.5% of annual rental payment (the registration tax in Italy is 1% of annual rent - paid 50/50% by landlord and tenant).

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

Upfront quarterly payment of the rent and bank guarantee corresponding to approx. 1 year of rent and covering the whole lease term.

Negotiated Subletting/Assignment

The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent is NOT required.

Negotiated Subletting/Assignment Notes:

Typically, the sublease clause is present for the the same group's/holding companies - but must be negotiated during the lease discussion.







Landlord consent may not be required if subleases are within internal company - but must always be well specified in the lease.

Statutory Subletting/Assignment

This is NOT a statutory right.
Landlord Consent: The Landlord's consent is NOT required.

Blend & Extend Strategies

Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Can be negotiated separately.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Early break options are always negotiated separately. Typical cost: always subject to negotiation. In some cases, the landlord will ask for a penalty.

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

All tenant personalization must be removed (total reinstatement is usually required).

Workplace

Regional Office Space

10sm-15sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Regional HQ Office Space

10sm-15sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Desk Sharing

Desk-sharing is not a common practice in the market.

Desk Sharing Notes:

*Approx. 80 workstations per 100 headcount. We have started to see more corporations applying smartworking and shared desk policies (audit, IT, consulting, industrial and engineering companies etc.).

Industrial Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for manuafacturing and warehouse/distribution office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for industrial space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Fit-Out Cost Notes:

Typically no, if it does not relate to the building structure/improvement. All internal personalization relates to the Tenant`s business and operations. In case of Tenant`s exit, the property shall be as universal and flexible for other Tenant as possible.

Rent-Free Period

The Landlord typically does not provide a rent-free period in addition to the fit-out contribution.

Rent-Free Notes:

In some situations, there might be a contribution on fit-out or a rent-free period, subject to negotiation.

Tenant Rep Broker Fee (New Leases)

The Tenant typically pays the tenant rep broker’s fee.

Payment of Fees/Commissions Notes:

Fees from LL only with exclusive mandate - Fees from tenant always due

Tenant Rep Broker Fee (Renewals)

The Tenant typically pays the tenant rep broker’s fee.

Payment of Fees/Commissions Notes:

Fees from LL only with exclusive mandate - Fees from tenant always due

Lease Provisions

Lease Term

6yrs.-18yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Figures depend on the typology of activity run in the asset.



VAT/Insurance/Utilities/Taxes/Stamp Duty etc to be paid separately.

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

Upfront quarterly payment of the rent and bank guarantee corresponding to approx. 1 year of rent and covering the whole lease term.

Negotiated Subletting/Assignment

The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent is NOT required.

Negotiated Subletting/Assignment Notes:

Typically, the sublease clause is present for the the same group's/holding companies - but must be negotiated during the lease discussion.







Landlord consent may not be required if subleases are within internal company - but must always be well specified in the lease.

Statutory Subletting/Assignment

This is NOT a statutory right.
Landlord Consent: The Landlord's consent is NOT required.

Blend & Extend Strategies

Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Can be negotiated separately.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Early break options are always negotiated separately. Typical cost: always subject to negotiation. In some cases, the landlord will ask for a penalty.

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

All tenant personalization must be removed (total reinstatement is usually required).

Project Management

Section 1. Fit Cost Data

Total Fit-Out Cost

€1250/sm

Class A Office

€1000/sm

Class B Office

€800/sm

Class C Office

Total Fit-Out Cost Notes:

The fit-out cost refers to the total cost of design, construction, and installation for a space. It includes categories such as materials, labor, furniture, fixtures, equipment, finishes and other related costs. The specific factors influencing the total fit-out cost can vary widely depending on the project scope, location, size of the space, quality of materials, and complexity of design.

Furniture Cost

€200/sm

Class A Office

€150/sm

Class B Office

€100/sm

Class C Office

Furniture Cost Notes:

These costs are typically paid by the client.

Floor Covering Cost

€200/sm

Class A Office

€150/sm

Class B Office

€100/sm

Class C Office

Floor Covering Cost Notes:

These costs are typically paid by the client.

Partitioning Walls Cost

€300/sm

Class A Office

€200/sm

Class B Office

€150/sm

Class C Office

Partitioning Walls Cost Notes:

These costs are typically paid by the client.

Other (IT/etc) Cost

€80/sm

Class A Office

€45/sm

Class B Office

€30/sm

Class C Office

Other Cost Notes:

These costs are typically paid by the client.

Construction to Move-in Cycle Time

Cycle Cost Notes:

it depend of the sizeof the office space and the site logisitc

Typical Manpower Hourly Rates

€140/hr

Programme Manager

€120/hr

Senior Project Manager

€100/hr

Project Manager

€70/hr

Junior Project Manager

€60/hr

Project Assistant

€90/hr

Workplace Consultant

€100/hr

Designer/Architect

Project Management Base Fee

5-Jun%

Base fee [%] for the fitout of above office of 1000 m2.

Section 2. Scope of Work Description

Phase 1: Services Before and During the Transaction

Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Not typically included at all, but available for an additional fee.
Define program of requirements for location, building and interior characteristics
Typically included in "Project Management" scope of work.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.

Phase 2: Service Before and During the Design Process

Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Typically included in "Project Management" scope of work.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Not typically included at all, but available for an additional fee.
Define interior guidelines for architect based on workplace strategy
Not typically included at all, but available for an additional fee.
Control workplace strategy and functionality and during design process
Not typically included at all, but available for an additional fee.
Architectural design
Not available / not a service that can be offered.

Phase 3: Services Before Construction

Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Not typically included at all, but available for an additional fee.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.

Phase 4: Services During Construction

Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Typically included in "Project Management" scope of work.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Not available / not a service that can be offered.
Phase 4 Notes:
Included the collection of the as-built drawings and O&M manuals.

Additional Services: Services During Relocation

Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Not typically included at all, but available for an additional fee.

Additional Services: Project Management Services Related to Furniture/Workstation Procurement

Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Typically included in "Project Management" scope of work.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Typically included in "Project Management" scope of work.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.
Additional Services Notes:
With the design team/client support.

Operating Environment Rankings reported on a scale of 1 (least favorable) to 10 (most favorable).

Human Capital

4, 6 4/10

Labor Force Growth
Labor force growth rate (past 5 years)

5, 5 5/10

Wage Inflation
Rise in wages (past 5 years, local currency)

5, 5 5/10

Millennials
Proportion of population in the age 20-39 cohort


6, 4 6/10

High School Education Equivalent
Proportion of population attaining this level

4, 6 4/10

University Education Equivalent
Proportion of population attaining this level

5, 5 5/10

Overall Education
Composite average of High School & University


5, 5 5/10

Human Capital Composite

Business Climate

5, 5 5/10

Innovation
Presence of innovative factors in economy

6, 4 6/10

Economic Risk
Resilience of economy to unexpected events

6, 4 6/10

Business Environment
Friendliness of business environment

3, 7 3/10

Corporate Tax Rate
Favorable corporate tax rate


5, 5 5/10

Business Climate Composite

Operating Environment Composite

5, 5 5/10

Combined average score of Human Capital and Business Climate factors

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).

Back to Top