{"id":1004795893,"date":"2026-04-21T03:28:44","date_gmt":"2026-04-21T11:28:44","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004795893"},"modified":"2026-04-26T23:20:38","modified_gmt":"2026-04-27T07:20:38","slug":"office-fit-out-costs-are-rising-heres-why","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/office-fit-out-costs-are-rising-heres-why\/","title":{"rendered":"Office Fit-Out Costs Are Rising\u2014Here\u2019s Why"},"content":{"rendered":"\n<p>When it comes to fitting out office space, landlords and users aren\u2019t catching many breaks lately, JLL has reported. Globally, the average cost to fit out an office is up by between 2 percent and about 6 percent over the past year, according to the company\u2019s <a href=\"https:\/\/www.jll.com\/en-us\/guides\/global-office-fit-out-costs-guide\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2026 global office fit-out costs guide<\/a>.<\/p>\n\n\n\n<p>Although the rising construction materials prices that have bedeviled the fitting-out process for a few years have stabilized, JLL stated, \u201ca complex mix of geopolitical instability, rising energy prices, skilled labor shortages and increasingly complex technology requirements\u201d has boosted fit-out costs substantially.<\/p>\n\n\n\n<p>The result, JLL reported, is that the global benchmark for a medium-quality corporate office fit-out is now $205 per square foot ($2,150 per square meter).<\/p>\n\n\n\n<p>Unhappily for U.S. owners and tenants, North America remains the most expensive region for fit-outs, with costs averaging $295 per square foot ($3,200 per square meter). That\u2019s significantly higher than average costs in Asia Pacific ($1,550 per square meter), Latin America ($1,800 per square meter) and EMEA ($2,300 per square meter).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"616\" data-attachment-id=\"1004795899\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/office-fit-out-costs-are-rising-heres-why\/average-fit-out-costs-for-offices\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png\" data-orig-size=\"938,616\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Average fit-out costs for offices\" data-image-description=\"&lt;p&gt;Scott received permission &lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Global and regional average fit-out costs for offices, medium-finish typology. Chart courtesy of JLL Research&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png?w=938\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png\" alt=\"Chart showing global and regional average fit-out costs for offices, medium-finish typology\" class=\"wp-image-1004795899\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png 938w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png?resize=300,197 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Average-fit-out-costs-for-offices.png?resize=768,504 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/a><figcaption class=\"wp-element-caption\">Global and regional average fit-out costs for offices, medium-finish typology. <em>Chart courtesy of JLL Research<\/em><\/figcaption><\/figure>\n\n\n\n<p>Not only are New York City, San Francisco and Boston the top three most expensive cities globally for office fit-outs, but 12 of the 20 most expensive cities are in the U.S.<\/p>\n\n\n\n<p>\u201cWhile we saw some stabilization in material prices in 2025, the story for 2026 is one of compounding complexity. It\u2019s no longer a single issue, but a confluence of persistent labor shortages, volatile energy prices and new geopolitical uncertainty that is now baked into project pricing,\u201d Ruth Hynes, JLL\u2019s global project and development services research lead, as well as one of the report\u2019s authors, told <em>Commercial Property Executive<\/em>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/ma-activity-to-rebound-this-year\/\">M&amp;A Activity to Rebound This Year<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>There are specifics and intricacies beneath these larger numbers, of course. As just one example, rising copper prices are a behind-the-scenes factor in the costs of mechanical and electrical services, and in premium AV systems for hybrid work and the infrastructure needed for AI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-coping-strategies\">Coping strategies<\/h2>\n\n\n\n<p>Fortunately, JLL advises, there are some strategic decisions that can ease the pain, or at least predict it somewhat. &nbsp;<\/p>\n\n\n\n<p>\u201cIn major markets such as New York City and San Francisco, strategic decisions around typology and specification have become increasingly important, as these choices can influence project costs by over 25 percent,\u201d Daniel Pomfrett, JLL managing director of cost management for the Americas, project and development services, told <em>CPE<\/em>.<\/p>\n\n\n\n<p>The report classifies office typologies as \u201copen and agile,\u201d \u201chighly spatial\u201d and \u201cstructured,\u201d based in large part on how open vs. enclosed the layout is, underscoring current <a href=\"https:\/\/www.commercialsearch.com\/news\/office-industry-trends\/\">office space trends<\/a>. JLL stated that \u201cchoosing an office layout typology is a major cost determinant, with the potential to vary project costs by 10 percent to 13 percent before accounting for quality of finishes.\u201d<\/p>\n\n\n\n<p>Further, employees\u2019 ratings of different types of spaces (such as conference rooms, collaboration spaces, quiet spaces and outdoor spaces) as being less or more important for the workplace experience vary substantially.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png\"><img loading=\"lazy\" decoding=\"async\" width=\"958\" height=\"550\" data-attachment-id=\"1004795901\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/office-fit-out-costs-are-rising-heres-why\/employer-perspective-chart\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png\" data-orig-size=\"958,550\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Employer perspective chart\" data-image-description=\"&lt;p&gt;Scott received permission &lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Top priorities for C-suite and CRE leaders business strategies. Chart courtesy of JLL&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png?w=958\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png\" alt=\"Chart showing top priorities for C-suite and CRE leaders business strategies, according to JLL\" class=\"wp-image-1004795901\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png 958w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png?resize=300,172 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Employer-perspective-chart.png?resize=768,441 768w\" sizes=\"auto, (max-width: 958px) 100vw, 958px\" \/><\/a><figcaption class=\"wp-element-caption\">Top priorities for C-suite and CRE leaders business strategies. <em>Chart courtesy of JLL<\/em><\/figcaption><\/figure>\n\n\n\n<p>The report presents analyses based on first-quarter 2026 data only, from 68 cities worldwide. Regarding the most recent geopolitical upheaval, JLL cautioned, \u201cThe unfolding Iran conflict is causing disruption to energy markets and prices, but at the time of writing it is impossible to gauge specific impact.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A complex mix of factors is behind this surge, the latest JLL research finds. <\/p>\n","protected":false},"author":882,"featured_media":1004795902,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1490,21782,21808,23891,1600,21742,21747,1609,51037],"tags":[32796],"class_list":["post-1004795893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boston","category-development","category-featured","category-national","category-new-york","category-latest","category-office","category-san-francisco","category-trends","tag-jll"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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Chart courtesy of JLL"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/office-fit-out-costs-are-rising-heres-why\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Office Fit-Out Costs Are Rising\u2014Here\u2019s Why"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. 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