Technical Workplace Requirements Push Office Fit-Out Costs up 10%
Office fit-out costs have jumped about 10% in the last year, at an average of $295 per square foot compared to the $205 average globally, according to JLL's U.S. and Canada Office Fit-Out Costs Guide 2026. The increase is attributed to geopolitical headwinds, including tariffs and energy spikes from the war in Iran and rising demand for high-quality, tech-enabled workspaces.
The study covered 50 U.S. and Canadian markets and included analysis of cost drivers, typology variation and the 2026 policy and trade environment.
Office markets have been recovering with falling availability for seven consecutive quarters. There is relatively little ground-up construction that would have supplied sufficient inventory to address growing needs for properties. Premium locations have become a scarce commodity.
The foundation for such sites goes beyond what was a standard corporate fit-out. Now, "basics" are more complex and expensive. Mechanical, electrical and plumbing (MEP) and audio-visual/information technology are a growing share of the total fit-out cost, hitting 12% in some markets. That share is only going to increase as more technical workplace requirements become the norm, JLL writes.
"Complex infrastructure across physical layers, including integrated building systems, high-specification AV, and elevated power and cooling specs, is no longer a premium specification," the CRE brokerage wrote. "It is the baseline."
Depending on geography, there are four general regional average costs, depending on local practices, material costs and construction wages. The Northeast is the highest, generally running more than $315 a square foot. In the Far West, prices ran from $300 to $315. In the Rocky Mountain region, Plains, Great Lakes and Southeast, prices ranged from $265 to $300. The lowest costs, below $265, are in the Southwest.
JLL ranked the 50 target areas, mostly in the U.S. but also including some in Canada, by an index compared to New York City, which was the most expensive and given a 100 score. The top ten areas were New York (100), San Francisco (97), Oakland (93), Boston (93), Sacramento (90), Chicago (90), San Diego (89), Denver (89), and Cincinnati (88.73).
The least expensive in the U.S. were Fort Worth (69.01), San Antonio (70.42), Houston (70.42), Dallas (70.42), Austin (71.83), Orlando (72), Miami (72), Phoenix (72), Louisville (73) and Raleigh (73.24).
The four least expensive areas were all Canadian: Toronto (55), Montreal (56), Calgary (63) and Vancouver (65).
The typical office fit-out cost breakdown in North America is 38% builders' works; 29% M&E services; 16% furniture, fixtures and equipment; 10% security and IT & AV works and 7% professional services.
Source: GlobeSt/ALM