How Much Does It Cost to Build Out Office Space?

Understanding Office Buildout Costs: A Simple Guide

Building out office space is a key step in creating a productive, functional environment for your team. Costs can range from $50 to $250 per square foot, depending on factors like customization, materials, and location. Planning your budget early can save time and money, especially during lease negotiations when landlords may offer a Tenant Improvement Allowance (TIA) to offset some expenses.

Here’s a simple breakdown of typical office buildout costs and key considerations:

1. Architecture and Engineering Costs

• Design Fees: Architects charge $3–$5 per square foot, with costs decreasing for larger, less complex projects.
• MEP Engineering: Mechanical, electrical, and plumbing (MEP) plans typically cost $1–$1.50 per square foot.
• Structural Engineering: Costs for special features like staircases vary but are often lump sums lower than MEP fees.

2. Construction Costs

Construction is the largest expense, taking up 75% or more of the budget.

• Get quotes from contractors.
• Use your space plan for cost estimates.
• Compare with similar projects for accuracy.

Pro Tip: Budget for building permits and inspections—about 2% of construction costs—and consider using a permit expediter for faster approvals (around $1,500).

3. Technology and Wiring

• Voice and Data: Wiring costs run $2–$3 per square foot.
• Security Systems: Budget about $5,000 for the first door with access control, and $3,000 per additional door.
• Audio Visual (AV): Placeholder costs range from $4–$7 per square foot.

4. Furniture and Moving

• Furniture: New furniture costs $20–$30 per square foot. Reusing old furniture may lower costs but could incur disposal fees.
• Moving: Moving just your contents costs under $1 per square foot. Relocating furniture adds $2–$3 per square foot.

5. Other Expenses to Plan For

• Landlord Fees: Landlords may charge a project management fee (1% of construction costs).
• Signage: Exterior signs can cost around $35,000, while reception area signs are closer to $5,000.
• Project Management: Hiring a project manager costs 3–5% of the total project budget and can prevent costly delays.

6. Budget Contingency

Always set aside 5% for design adjustments and 5% for unexpected costs like hidden building conditions.

Pro Tip for Growing Businesses: If flexibility is a priority, coworking spaces can provide cost-effective alternatives to traditional office buildouts.

Conclusion:
A well-planned office buildout ensures you stay on budget and timeline while creating a space tailored to your business needs. By understanding these key cost factors, you can navigate the process with confidence and set your team up for success.

Would you like help calculating your specific office buildout budget or finding cost-saving strategies? Let us know!