Cost Of Construction Fit Outs Tick Up Amid Rising Hard Costs, New Design Standards

Construction costs for office fit outs are up 23% this year, according to JLL’s latest office fit out guide released today. Hard costs have played the biggest role at an increase of more than 25 percent, while rising design standards have also played a role.

JLL benchmarked office fit out costs according to style (progressive, moderate, and traditional) and space quality and complexity (base, medium, and high).  Progressive fit outs involved efficient open-office floor plans with predominantly bench-style desk seating and few or no enclosed offices, and include a high ratio of small huddle rooms for privacy or small group collaboration, as well as a variety of collaboration and conference spaces.  Moderate spaces consist of agile floor plans composed mainly of workstations in an open setting, as well as a moderate number of private offices and a mix of medium-sized conference and collaboration spaces.  Traditional spaces, conversely, are private-office-heavy with a quarter to a third of the space dedicated to private offices.