Office Fit Out Cost Guide Americas 2026

A Cushman & Wakefield Publication

Fit Out Cost Guide 2026 OFFICE

AMERICAS

This guide, which covers 59 markets across the Americas, helps occupiers define their capital planning and relocation budgets. It includes a comprehensive fit out cost section, covering architectural trades; millwork; doors, frames and hardware; drywall, acoustic ceilings and carpentry; general finishes; mechanical, plumbing and fire protection; electrical; and more.

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Office Fit Out Cost Guide 2026

Key Findings

Moderating inflation has enabled many countries to begin easing monetary policy, though sticky CPI readings in certain markets have made the timing and pace of rate reductions less certain.

The office development pipeline across the Americas has fallen to a 25-year low, and while some markets exhibit pockets of strong demand, overall construction activity remains subdued.

Based on findings from our C&W General Contractor (GC) Sentiment Survey, GCs don’t expect material or labor costs to decline over the next six months. Against a backdrop of rising input prices and reduced construction activity, an increasing share of GCs anticipate absorbing a portion of these cost increases rather than fully passing them through.

Office fit out costs averaged $149 per square foot (psf), a 5.5% increase from our 2025 report. Overall, price growth aligned with national inflation trends, though a few markets diverged notably.

San Francisco ($228 psf), San Jose ($224 psf) and Seattle ($223 psf) ranked as the three most expensive fit out markets. Elevated labor costs, strong union presence, stringent building and energy code requirements, seismic compliance standards and consistently high operating and insurance expenses collectively drive pricing premiums in these Western U.S. metros.

Argentina, Brazil and Colombia were the most affordable markets in this year’s report, recording average costs of $57 psf, $79 psf and $84 psf, respectively.

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Office Fit Out Cost Guide 2026

• Global supply chains’ stress levels crept back above historical norms in December, while leading indicators remain mixed. The largest headwinds continue to be tariffs, shifting trade policy and geopolitical tensions leading to structural fragmentation. Historically, global supply chains were optimized for cost efficiency, just-in-time delivery and cross-border specialization. Today, more geo-political conditions have to be taken into consideration, resulting in a reconfiguration of supply chains. Nonetheless, major logistics bottlenecks have largely normalized compared to pandemic-era extremes, and firms are increasingly adopting dual- sourcing strategies to reduce exposure and improve resilience. • Inflation moderated across much of the Americas in 2025, with most countries covered in this report recording slower year-over-year (YOY) CPI growth compared to 2024. Ecuador was an exception, with annual inflation modestly higher in 2025 than in 2024, though CPI remains below 3%. While Argentina saw a sharp slowdown in consumer price growth, inflation remains extremely high, reflecting lingering effects of past fiscal imbalances, currency weakness and price distortions despite recent policy tightening. • Monetary policy is beginning to diverge across the region, with several Latin American central banks entering easing cycles, while the timing and pace of U.S. rate adjustments remain uncertain. This divergence has contributed to differing financing conditions across markets. In regions where borrowing costs are declining, improving liquidity may provide incremental support for real estate investment activity, while persistently higher rates elsewhere continue to weigh on capital deployment and development activity.

Macroeconomic: Significant Improvements

Global Supply Chain Stress (2015-2025)

150

130

Construction Conditions

110

-1

-3

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

United States

China

LATAM

Global (RHS)

Source: Federal Reserve Bank of New York; Monthly data series

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Office Fit Out Cost Guide 2026

Commodity Prices: Key Inputs Regain Pricing Momentum

Cost Index for Lumber, Steel, Copper and Cement

150 250 350 450 550 650 750 850

Forecast

Lumber

Copper

Steel (Pipe and Tube)

Cement

Inflation Rate (By Country)

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted; Monthly data series

12%

Percent Change in Index Pricing for Select Commodities

-30% -20% -10% 0% 10% 20% 30% 40%

2025 2024

Source: Moody’s Analytics, Cushman & Wakefield Research; Quarterly data series; Note: U.S. Q4 averages exclude October due to missing data; *Argentina off-chart: 2025 – 31%, 2024 - 154%

Lumber

Copper

Steel (Pipe and Tube)

Concrete

3-Year Change

YOY Change

1-Year Forecast

10-Year Treasury (By Country)

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted; Change based on monthly data

20%

• While broader commodity prices eased after 2022, many have seen increases over the past year, particularly copper and concrete. Copper price growth has been driven largely by structurally rising demand tied to electrification trends, including electric vehicles, data centers and power grid upgrades. By contrast, concrete prices primarily reflect cost-push pressures from 2022 and early 2023 when sharp increases in fuel and electricity costs raised the industry’s cost base. Although energy prices have since moderated, downstream electricity rates and other operating costs remain elevated, contributing to higher input costs. • Higher effective tariff rates on imported materials are expected to keep domestic prices elevated because imported competition is constrained and producers can maintain higher factory-gate pricing.

15%

10%

Brazil Colombia Argentina Mexico Costa Rica

Peru Chile United States

Canada

2025 Q4

2024 Q4

2026 Q4 (Forecast)

Source: Moody’s Analytics, Cushman & Wakefield Research; Quarterly data series

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Office Fit Out Cost Guide 2026

Construction Costs: Construction Cost Pressures Linger

U.S. Construction Cost Index

30,000

4.0% YOY

25,000

20,000

3.5% YOY 5.7% YOY 4.2% YOY

15,000

10,000

5,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Construction Building Common Labor Skilled Labor

Source: Engineering News Record (ENR) (McGraw-Hill); Monthly data series

Canada Construction Cost Index

3.7% YOY

120

100

Source: StatsCan, Cushman & Wakefield Research; Quarterly data series

• Average annual construction costs for 2025 remained below the 10-year average in most markets. However, several countries have seen growth pick-up compared to the three-year average. In the United States, rising material costs, coupled with persistent skilled labor shortages, have placed upward pressure on pricing. Despite these headwinds, limited construction activity has helped offset these conditions. • In Canada, while construction cost escalation has moderated from peak levels during the global pandemic, construction costs appear to have reset to a structurally higher baseline. Ongoing trade uncertainty, persistent labor constraints and sustained wage growth will continue to exert upward pressure on construction costs, limiting the prospect of a return to pre-2020 levels. • In Mexico, cost increases have been more moderate supported by competitive labor conditions, though nearshoring-related industrial activity has sustained demand in certain regions. Brazil has seen cost escalations ease from prior peaks but has recently climbed above its three-year average. Argentina, meanwhile, has experienced a marked deceleration in price growth as recent policy measures have slowed the pace of increases.

Latin America Construction Cost Index

100% 150% 200% 250%

0% 50%

4% 22% 6%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Mexico

Argentina

Brazil

Source: Moody’s Analytics, Cushman & Wakefield Research; Monthly data series

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Office Fit Out Cost Guide 2026

The pricing benchmarks included in this guide reflect market conditions as of December 2025 and represent average fit out costs across the covered markets. While every effort has been made to ensure accuracy, ongoing geopolitical developments, including conflict in the Middle East, may influence supply chains, material availability, labor markets and energy costs , which could impact future pricing. As such, these figures should be considered indicative benchmarks rather than fixed project costs , and we recommend seeking project- specific advice for current market pricing.

Construction Labor: Constraints Persist

YOY Employment Growth

10-Year Compound Annual Growth Rate

10%

2.4% 2.3%

1.9% 1.6%

3.1%

0.7%

1.4%

0.3% 0.2%

0.0%

-0.2%

-1%

-0.5%

-2.4%

-5%

-1.6%

-2%

Construction Employment YOY Total Employment YOY

Construction Employment 10-year Total Employment 10-year

Source: Moody’s Analytics, Cushman & Wakefield Research; Quarterly data series; Note: Construction employment for Argentina is based on Q2 2025 figures

• Construction employment growth across North America was minimal in 2025, with Canada, the United States and Mexico recording modest annual changes, topping out at 0.3%. Persistent skilled labor shortages, coupled with subdued construction activity, have continued to constrain hiring. In Argentina, employment posted strong YOY gains; however, overall levels remain well below those recorded in 2022–2023. Colombia also saw strong growth, supported by a robust pipeline of infrastructure projects. By contrast, construction employment contracted in Brazil, with the lingering effects of prior monetary tightening weighing on activity.

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Office Fit Out Cost Guide 2026

Construction Labor: Wage Growth Normalizing

• Despite some cooling in wage momentum, the construction labor market in both the United States and Canada remains structurally tight. From 2016 to 2019, average YOY construction labor cost growth was approximately 2.8% in Canada and 7.3% in the United States. In 2025, Canadian construction wages increased by roughly 5.2% YOY, while U.S. construction wage growth reached 5.8%—below its pre-pandemic average but still elevated relative to overall employment wage growth. • While moderating U.S. construction wage growth might suggest easing labor pressures, subdued construction activity has reduced labor demand. Over the past decade, wage growth has exceeded employment growth by roughly 2.5 times on average, widening to approximately 3.5 times in 2025. This pattern suggests that, despite softer hiring conditions, limited availability of skilled workers continues to sustain wage growth above 5% in the U.S. • Meanwhile, construction wage growth in Canada grew at a rate of 2.3 times to that of construction employment in 2025, largely in line with the country’s 10-year average of 2.6 times. This persistent divergence underscores a structurally constrained labor supply. With sector productivity data declining since 2016, rising wages translate directly to higher unit labor costs, reflecting a structurally higher cost baseline for the development sector.

U.S.: Construction Employment and Wages

Canada: Construction Employment and Wages

10% 15% 20% 25% 30% 35%

0% 5%

-15% -10% -5%

Construction Employment Construction Wages

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics; Quarterly data series

Source: Statistics Canada; Moody’s Analytics; Quarterly data series

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Office Fit Out Cost Guide 2026

Structural Shift in the Office Pipeline

Office: Under Construction

200

150

100

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Canada LATAM United States

Source: Cushman & Wakefield Research

Office: Under Construction as a Percent of Inventory

20%

15%

10%

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Canada

LATAM

United States

Source: Cushman & Wakefield Research

• New office construction has declined steadily since 2020, with Q4 2025 marking a cyclical low in square footage under construction. A similar contraction followed the Global Financial Crisis, though the current downturn is more pronounced. The reduction in pipeline activity reflects a combination of cyclical pressures—including elevated interest rates, economic uncertainty, tighter lending standards, the completion of pre-pandemic projects and more structural headwinds stemming from the rise of hybrid and remote work. • Soft leasing activity, a higher vacancy rate and a surge in sublease availability redirected some development capital toward other asset classes, including alternatives. While lower interest rates would provide some support, a meaningful rebound in office development is unlikely in the near term.

Office Sector

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Office Fit Out Cost Guide 2026

Leasing Momentum Improving in Select Markets • Despite ongoing headwinds, signs of stabilization in the office sector are emerging. Full-year 2025 net absorption was positive in most countries across the Americas, led by Canada with gains exceeding 4.5 million square feet (msf). Colombia also performed strongly, with net absorption surpassing 2% of total inventory and vacancy falling below 7%, well within 2019 norms. While the U.S. posted -6.7 msf of net absorption, the weakness was heavily concentrated in a handful of underperforming markets. Excluding the five weakest markets, net absorption for the year would have been 11.1 msf.

Office Demand Disproportionately Favoring Trophy Class A Buildings

Tight Mkts. More Likely to See New Supply Class A overall vacancy rates vs. U/C share of inventory, U.S. & Canada markets

0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8%

Tight Vacancy and Plenty of New Supply

Higher Vacancy and Plenty of New Supply

Montreal

Orlando

Kansas City

Washington

Salt Lake City

Milwaukee

San Diego

Philadelphia

Orange Co.

Hampton Roads

Tampa

Boston Tucson

Tight Vacancy and Less New Supply

Higher Vacancy and Less New Supply

Las Vegas Sacramento

Richmond

Greensboro

Cleveland

Colorado Springs

Baltimore

NYC - Downtown

St. Louis Calgary

Long Island

San Antonio

10%

15%

20% 25% 30% 35%

Class A Vacancy Rate (2025 Q4)

U.S. Average U.S. Markets Canada Average Canadian Markets

Source: Cushman & Wakefield Research

• Leasing activity remains selective rather than broad-based, but momentum is gradually broadening geographically. • Market fundamentals continue to reflect a pronounced bifurcation. Overall vacancy remains elevated, yet availability is disproportionately concentrated in older and lower-quality buildings. • In many major markets, Class A leasing has matched or exceeded pre-pandemic levels, reinforcing the sustained flight to quality. Well-located, amenity-rich assets are capturing an outsized share of tenant demand. • As new deliveries slow and demand concentrates within a limited pool of premium assets, occupiers in stronger submarkets are facing reduced optionality for high-quality space. • Markets with tightening availability of Class A office space are most likely to see an uptick in construction activity. Strong demand, coupled with limited supply, supports rent growth, compresses vacancy rates and incentivizes new development.

Americas Net Abs. Totaled Positive in 2025 2025 net absorption by country

1.7 msf 2.4 msf 2.1 msf 2.1 msf

-0.6 msf 1.3 msf 1.3 msf 2.6 msf

0.2 msf 0.1 msf

1.6 msf 0.9 msf

0.2 msf 1.0 msf

-6.0 msf

-3.1 msf

LATAM (excl. Mexico)

Canada

Mexico

United States

Q1 Q2 Q3 Q4 2025 Total

Source: Cushman & Wakefield Research

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Office Fit Out Cost Guide 2026

U.S. Tenant Improvement Allowances Grow • Class A tenant improvement (TI) allowances have been steadily increasing as landlords compete for high-credit tenants, respond to elevated build-out costs and deploy capital to stabilize existing assets. At the same time, occupier expectations have evolved, with greater demand for high-end finishes, collaborative layouts and integrated amenities. These modern workplace environments are more complex and costly to deliver, particularly in newer or repositioned Class A assets. As a result, landlords are offering larger TI packages to align with tenant expectations while preserving headline rents. Performance varies by market; higher TI allowances reflect both intensified competition for quality tenants and the increased cost of delivering today’s premium office space.

• In this environment, securing the right location increasingly depends on strategic workplace investment. Thoughtful design and targeted fit outs can differentiate space, support talent strategies and maximize long-term value in a supply-constrained segment of the market.

Construction Activity Relative to Inventory Square feet under construction as a percent of inventory; select markets in U.S. and Canada

2.6%

Class A Tenant Improvement Allowances Up in 2025

0.4%

10% 15% 20%

$55 $60 $65 $70 $75 $80 $85

$80

0% 5%

2020 Q1

2025 Q4

-10% -5%

Source: Cushman & Wakefield Research; *Austin U/C pipeline off-chart: 2020 Q1 – 12%

YOY (%), RHS

TI Allowances (Trailing 4-Qtr)

Source: Cushman & Wakefield Research

Markets with Largest YOY Increase in Class A TI Allowances (Trailing 4-Qtr)

Vancouver Greater LA San Diego Orlando

208%

41%

37% 38%

9 Markets with >25% YOY Increase

U.S. Average NJ - Northern Washington Tampa Baltimore Orange Co. Raleigh/Durham Santa Clara Boston

33%

28% 31% 31%

25%

17%

9% 10% 11%

Source: Cushman & Wakefield Research

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Office Fit Out Cost Guide 2026

C&W General Contractor Sentiment Survey • To further assess conditions in the construction sector, Cushman & Wakefield surveyed general contractors throughout the Americas. The results indicate that cost pressures remain firmly embedded in contractor expectations, with limited signs of near-term relief. A significant majority of respondents (79%) expect both labor and material costs to increase over the next six months. While this outlook is generally consistent with findings from the 2025 survey, a notable shift is that none of the respondents this year anticipate a decline in input expenses.

• Supplier pricing expectations have also intensified. 83% of surveyed contractors anticipate price increases from vendors, representing a 24% increase from the prior survey. However, only 63% expect to raise their own service pricing, creating a notable disconnect between input cost expectations and planned price pass-through. Survey responses further suggest that competitive pressures are limiting contractors’ ability to fully offset higher costs. In 2025, 13% of contractors indicated they would absorb higher supplier prices rather than pass them through to clients. That share has since risen to 20%, pointing to growing margin compression amid moderating construction demand, as more contractors bid for fewer office projects.

Winter 2026 Survey: Next 6 Months

Winter 2026 Survey: GC and Supplier Prices

NEXT SIX MONTHS

GC's Suppliers

Labor Costs

14%

74%

21%

79%

General Contractors

Material Costs

34%

63%

21%

66%

13%

Decrease Significantly Decrease Slightly

No Change

Decrease Significantly Decrease Slightly

No Change

Increase Slightly

Increase Significantly

Increase Slightly

Increase Significantly

Source: Cushman & Wakefield Research

Winter 2025 Survey: Next 6 Months

Winter 2025 Survey: GC and Supplier Prices

NEXT SIX MONTHS

Labor Costs

GC's Suppliers

30%

65%

36%

59%

Material Costs

General Contractors

17%

80%

54%

46%

Decrease Significantly Decrease Slightly

No Change

Decrease Significantly Decrease Slightly

No Change

Increase Slightly

Increased Significantly

Increase Slightly

Increase Significantly

Source: Cushman & Wakefield Research

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Office Fit Out Cost Guide 2026

The Impact of Immigration Policy on Labor • Labor availability remains a concern for the industry. Against the backdrop of an ongoing skilled labor shortage, tightened immigration policy has introduced additional uncertainty. Approximately one-third of U.S.-based respondents expressed concern about the potential impact on their labor force. Unsurprisingly, markets that serve as traditional immigration hubs reported higher levels of concern.

• Tariff-related cost concerns remain prevalent. 69% of respondents believe tariffs will continue to exert upward pressure on vendor pricing over the next six months. However, just over half expect tariffs to directly drive increases in their own service pricing. This divergence further reinforces the theme of partial cost absorption and competitive restraint within the contractor community.

Winter 2026 Survey: To what extent do you expect tariffs to impact pricing over the next six (6) months at …?

Winter 2026 Survey: How concerned are you about immigration policy im- pacting your labor force?

Midwest U.S. Northeast U.S. South U.S. Southeast U.S. Tri-State U.S. West U.S.

20%

80%

33% 33%

67%

GC's Suppliers

26%

69%

33%

40%

60%

33% 33%

67% 67%

General Contractors

40%

51%

United States

33%

59%

Decrease Significantly Decrease Slightly

No Change

Increase Slightly

Increase Significantly

Not at all

Slightly Concerned

Moderately Concerned

Significantly Concerned

Source: Cushman & Wakefield Research

Source: Cushman & Wakefield Research; Note: Responses regarding the impact of immigration policy were limited to United States general contractors

• Material lead time expectations remain largely stable compared to the prior year, with most respondents anticipating no significant change. However, regional variation has widened. Contractors in Latin American markets were more likely to expect longer lead times, reflecting localized supply chain constraints. Conversely, respondents in the Western United States expressed greater optimism, with a higher share anticipating shortened lead times.

Material Lead Times: Next 6 Months

Winter 2025

72%

19%

Winter 2026

11%

66%

16%

Decrease Significantly Decrease Slightly

No Change

Increase Slightly

Increase Significantly

Source: Cushman & Wakefield Research

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Office Fit Out Cost Guide 2026

Americas Office Fit Out Costs PDS Americas Fit Out Guide – Construction Pricing Criteria

Generation 1 Project Description: The Generation 1 tenant improvement project (Gen 1) scope and related costs are based on modern-day corporate office space with private offices, office workstations, executive areas, reception, training rooms, conference rooms and all other associated ancillary space customary in a corporate facility. Low Voltage Cabling, Audio Visual Equipment, Security, Furniture and other Furniture, Fixtures & Equipment (FF&E) items are excluded from the pricing. Given the fluidity of the construction market, a ten percent (10%) contingency allowance has been included in the cost. Generation 2 Project Description: The Generation 2 tenant improvement “adaptive reuse” project (Gen 2) scope and related costs are based on all the design criteria of the Gen 1 project except for the adaptive reuse scope described as follows: • Selective demolition of the existing tenant improvements including finishes, partitions, ceilings and mechanical/electrical systems • Reuse 25% of existing partitions and ceiling systems

• Reuse 25% of existing sprinkler head locations • Reuse 80% of perimeter zone air distribution • Reuse 20% of interior HVAC zone air distribution

• Reuse 100% of existing electrical distribution infrastructure • Reuse 25% of existing electrical power & lighting distribution • Reuse 100% of existing fire alarm main loop with 75% new and 25% relocated devices

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Office Fit Out Cost Guide 2026

Region/Country Overview

Tenant Improvement Cost Change by Country Generation 1, Year-over-Year change (based on local currency)

50%

-10% 0% 10% 20% 30% 40% 50%

• Canada was the only non-U.S. market to report average fit out costs exceeding that of the Midwest, underscoring the significant pricing gap between major U.S. markets and the broader Americas. LATAM, excluding Mexico, remained the most cost-competitive region at $108 psf, followed by Mexico at $119 psf. Construction costs in these markets are structurally lower due to factors such as reduced labor wages, lighter benefit and insurance burdens, less complex regulatory frameworks and leaner contractor overhead structures.

7% 6% 5% 5% 5% 5% 5% 4% 4%

2% 2%

Tenant Improvement Costs by Market Generation 1

Source: Cushman & Wakefield Project & Development Services

$200

• Office fit out costs for 2026 averaged $149 psf, representing a 5.5% average increase since our 2025 report. Brazil recorded the most significant YOY gain at 50%, followed by Colombia (+7%) and Argentina (+6%). Costa Rica remained effectively flat, with less than one basis point (bps) of movement. Peru and Canada showed limited growth, each posting annual increases of approximately 2%. Overall, fit out pricing trends across most countries generally tracked inflation patterns discussed earlier, with Brazil and Argentina serving as notable outliers. The large fluctuation in the Brazil numbers could be attributed to multiple factors such as general contractor coverage and currency fluctuations. Actual construction inflation in 2025 was 5.63% YOY. Local currency volatility and a 23% decline in available construction work—which intensified competition and tempered market escalation—contributed to fit out cost increases in Argentina lagging broader inflation. • The United States recorded an average annual increase of 5% in fit out costs, aligning with YOY changes in construction and building cost indices published by Engineering News- Record (ENR). Regionally, the Northeast experienced the strongest growth at 7%, while the Midwest posted the most modest increase at 2.1%. The Tri-State region reported the highest average fit out pricing nationally at $193 psf.

$150

$100

$50

Northeast U.S.

Tri-State U.S.

West U.S.

Midwest U.S.

Southeast U.S.

South U.S.

Canada

Mexico

LATAM

Source: Cushman & Wakefield Project & Development Services

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Office Fit Out Cost Guide 2026

Markets

Tenant Improvement Costs First and second generation by market

$100 $150 $200 $250

• Brazil, Boston and Los Angeles recorded the largest YOY increases, rising 50%, 19% and 15%, respectively. Brazil experienced broad-based cost growth across segments, with a notable 177% surge in general finishes. In Boston, a 68% increase in electrical costs accounted for approximately 40% of the market’s $35 psf annual rise. In Los Angeles, an estimated $10 psf increase in drywall, acoustical and carpentry work was the primary contributor to the market’s $26 psf YOY gain. Boston’s sharp rise in electrical costs likely reflects sustained competition for skilled labor. The market has continued to see activity in life sciences, healthcare and institutional construction, all of which compete directly for licensed electricians and specialized electrical contractors. • Montreal, Toronto, Minneapolis, Detroit and Costa Rica posted YOY price declines. Costa Rica remained relatively stable across cost categories, while reductions in electrical pricing in Detroit, Montreal and Toronto helped offset increases in other segments. In Minneapolis, more modest but widespread cost declines across categories contributed to overall pricing relief. • Gateway markets continue to command a pricing premium, averaging $196 psf, approximately 21% above the broader U.S. average of $162 psf. • The Dominican Republic stood out among LATAM markets, ranking 12th overall at $171 psf. The next highest- priced market in the region was Panama, at a $33 psf discount relative to the Dominican Republic.

$0 $50

Generation 1

Generation 2

*Due to the extreme volatility of the Argentinian political and economic landscape, these values are fluctuating based on currency. Our local teams in Argentina can answer specific questions around costs at a particular time.

Source: Cushman & Wakefield Project & Development Services

• San Francisco ($228 psf), San Jose ($224 psf) and Seattle ($223 psf) ranked as the three most expensive fit out markets. Notably, all are located in the Western United States. These markets command a premium due to elevated labor costs, strong union presence, stringent building and energy code requirements, seismic compliance standards, and persistently high operating and insurance expenses. Latin American markets accounted for the five most cost-effective locations, including Argentina, Brazil, Colombia, Chile and Peru, where average fit out costs ranged from $57 to $101 psf.

Tenant Improvement Cost Change by Market Generation 1, Year-over-Year (2025 - 2026 % change, based on local currency)

60%

40%

20%

-20%

Source: Cushman & Wakefield Project & Development Services

Cushman & Wakefield

Office Fit Out Cost Guide 2026

Segments • Across all markets and fit out segments, electrical work represented the largest share of total project costs, accounting for 24% of overall expenses. Regionally, Latin America recorded the highest proportional allocation to electrical costs at 24%, while Mexico reported the lowest share at 18%. • Architectural millwork represented the smallest cost segment, accounting for just 3% of total fit out expenses. This relatively modest share is consistent with broader workplace trends favoring standardized layouts and modular components, though the proportion of millwork can vary meaningfully depending on tenant design priorities and project type.

Office Fit Out Cost Guide 2026

Cushman & Wakefield

Tenant Improvement Costs by Segment and Market

Generation 1: U.S. Most Expensive Markets

Segment Cost by Market

Segment Cost Composition by Market

$50

$100

$150

$200

$250

20%

40%

60%

80%

100%

San Francisco San Jose Seattle New York City Boston Lower CT Los Angeles Portland San Diego Chicago Sacramento Denver Baltimore Philadelphia Orange County Charlotte San Antonio Miami

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Dom. Republic Costa Rica Guatemala Argentina Peru

Tampa Atlanta Raleigh

Tampa Atlanta

Arch. Millwork

Contingency

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Cushman & Wakefield

Office Fit Out Cost Guide 2026

Tenant Improvement Costs by Segment and Market

Generation 1: U.S. Cost Effective Markets

Segment Cost by Market

Segment Cost Composition by Market

$0 $20 $40 $60 $80 $100 $120 $140 $160

20%

40%

60%

80%

100%

East Rutherford Austin Upstate NY Detroit Puerto Rico Las Vegas Orlando Boca / Fort Lauderdale Phoenix Washington DC Nashville Reno Dallas Salt Lake City

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Dom. Republic Costa Rica Guatemala Argentina Peru

Houston St. Louis Columbus Indianapolis Minneapolis Cincinnati Kansas City

Arch. Millwork

Contingency

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Cushman & Wakefield

Office Fit Out Cost Guide 2026

Tenant Improvement Costs by Segment and Market

Generation 1: Canada (USD)

Generation 1: Mexico (USD)

Segment Cost by Market

$50

$100

$150

$20

$40

$60

$80

$100 $120 $140

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Dom. Republic Costa Rica Guatemala Argentina Peru

Toronto

Mexico City

Vancouver

Guadalajara

Montreal

Monterrey

Calgary

Arch. Millwork

Contingency

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Segment Cost Composition by Market

20%

40%

60%

80%

100%

20%

40%

60%

80%

100%

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Toronto

Dom. Republic Costa Rica Guatemala Argentina Peru

Mexico City

Vancouver

Guadalajara

Montreal

Monterrey

Calgary

Arch. Millwork

Contingency

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Cushman & Wakefield

Office Fit Out Cost Guide 2026

Tenant Improvement Costs by Segment and Market

Generation 1: Latin America (USD)

Segment Cost by Market

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Dom. Republic Panama

Dom. Republic Costa Rica Guatemala Argentina Peru

Costa Rica El Salvador Guatemala Peru Chile Colombia Brazil Argentina

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Segment Cost Composition by Market

20%

40%

60%

80%

100%

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Dom. Republic Panama

Dom. Republic Costa Rica Guatemala Argentina Peru

Costa Rica El Salvador Guatemala Peru Chile Colombia Brazil Argentina

Arch. Millwork

Contingency

Doors, Frames, Hdwr

Drywall, Acoustic, Carpentry

Electrical

General Requirements, General Conditions & Fee

General Finishes

Mechanical, Plumbing, Fire Protection

Misc. Architectural Trades

Source: Cushman & Wakefield Project & Development Services

Cushman & Wakefield

Office Fit Out Cost Guide 2026

TIER 1 MARKETS

Percentage of HC

Low Range

High Range

Soft Costs

10%

$17.65

$27.59

$7.06

$11.03

A/V

12%

$21.18

$33.09

Furniture

22%

$38.83

$60.67

Miscellaneous

$3.53

$5.52

TIER 2 MARKETS

Percentage of HC

Low Range

High Range

Soft Costs

11%

$15.15

$22.72

$5.51

$8.26

A/V

12%

$16.53

$24.79

Furniture

20%

$27.54

$41.32

Miscellaneous

$2.75

$4.13

Office Fit Out Cost Supplement

TIER 3 MARKETS

Percentage of HC

Low Range

High Range

The fit out construction costs featured in this guide do not include low voltage cabling, audio visual equipment, security, furniture, fixtures & equipment (FF&E) and soft costs; however, to provide users with a process to arrive at an all-in fit out construction cost, we offer general information about these additional costs. See low to high ranges of costs for Tier 1, Tier 2 and Tier 3 markets. Note that these cost ranges are based on the type of project being priced. Further adjustments to these ranges may be necessary based on the actual scope of the project. For example, if a space includes a telepresence room, the A/V and IT costs may exceed the high range of these values to reflect the scope of that item. HOW TO USE THIS SUPPLEMENT: • Identify your market and its tier. • Find your 2026 fit out construction cost—i.e., hard costs, from the market tables provided at the back of the report. • Use the high-low ranges and add them to your hard costs (HC), or, alternatively, use the percentage of HC column to calculate the percentage of hard costs and add that to your total. • These numbers provide a range. For more accurate pricing, please reach out to your local Cushman & Wakefield PDS professional.

Soft Costs

13%

$12.67

$19.01

$4.87

$7.31

A/V

17%

$16.57

$24.85

Furniture

24%

$23.39

$35.09

Miscellaneous

$1.95

$2.92

TIER DEFINITIONS Tier 1 Markets: New York, Los Angeles, Boston, Lower CT, Sacramento, San Diego, San Francisco, San Jose, Seattle, Toronto, Vancouver, Montreal Tier 2 Markets: Atlanta, Austin, Baltimore, Fort Lauderdale, Denver, East Rutherford, Orange County, Chicago, Philadelphia, Las Vegas, Miami, Nashville, Orlando, Phoenix, Portland, Salt Lake City, San Antonio, Upstate NY, Dallas, Washington DC, Calgary

Tier 3 Markets: Cincinnati, Columbus, Detroit, Indianapolis, Kansas City, Minnesota, Raleigh, St. Louis, Houston, Tampa, Latin America, South America

Cushman & Wakefield

Office Fit Out Cost Guide 2026

Local Market Data

ARGENTINA (LC)

ATLANTA

BOCA / FORT LAUDERDALE 2025

BOSTON

2024 2025 2026

2026

2024 2025 2026

Misc. Architectural Trades

2,845.01

2,276.00

2,412.57

$3.31

$6.46

$4.05

$3.18

$3.14

$6.16

$10.16

$16.36

Arch. Millwork

1,165.16

932.13

988.05

Arch. Millwork

$6.69

$9.41

$7.34

Arch. Millwork

$8.80

$8.68

Arch. Millwork

$6.81

$3.26

$6.38

Doors, Frames, Hdwr

2,263.44

1,810.76

1,919.40

$20.16

$16.94

$18.19

$18.79

$21.35

$17.39

$23.40

$21.46

Drywall, Acoustic, Carpentry

2,724.60

2,179.68

2,310.46

$23.95

$28.31

$22.58

$13.21

$14.63

$26.85

$21.09

$23.65

General Finishes

1,639.28

1,311.43

1,390.11

General Finishes

$13.56

$11.43

$11.14

General Finishes

$10.03

$13.70

General Finishes

$10.86

$12.03

$13.05

Mechanical, Plumbing, Fire Protection

2,881.95

2,305.56

2,443.90

$31.82

$28.03

$31.74

$21.61

$20.84

$39.25

$48.72

$49.14

Electrical

4,570.45

3,656.36

3,875.74

Electrical

$34.27

$33.27

$38.94

Electrical

$26.19

$28.01

Electrical

$22.56

$20.78

$35.00

General Requirements, General Conditions & Fee

9,098.15

7,278.52

7,715.23

$12.45

$14.16

$15.25

$20.68

$24.26

$27.99

$22.40

$25.67

Contingency

2,688.83

2,151.06

2,280.12

Contingency

$13.17

$13.68

$13.35

Contingency

$11.87

$11.51

Contingency

$14.80

$16.94

$22.57

Total

29,876.87

23,901.50

25,335.58

Total

$159.38

$161.70

$162.58

Total

$134.36

$146.12

Total

$172.66

$178.77

$213.28

AUSTIN

BALTIMORE

BRAZIL

CALGARY (LC)

2024 2025 2026

2025

2026

2024 2025 2026

Misc. Architectural Trades

$4.50

$3.52

$4.02

$7.66

$5.04

$5.25

$3.97

$6.21

5.28

5.44

6.58

Arch. Millwork

$5.52

$8.33

$8.29

Arch. Millwork

$8.56

$7.86

$8.88

Arch. Millwork

$2.88

$4.76

Arch. Millwork

9.73

10.02

12.72

Doors, Frames, Hdwr

$12.56

$12.54

$16.98

$13.03

$15.54

$17.28

$5.66

$8.16

18.91

19.48

10.71

Drywall, Acoustic, Carpentry

$16.06

$16.56

$18.38

$16.78

$19.92

$18.60

$4.49

$6.86

25.09

25.84

22.54

General Finishes

$8.27

$11.20

$12.27

General Finishes

$9.11

$8.81

$10.18

General Finishes

$3.30

$9.15

General Finishes

12.89

13.27

13.28

Mechanical, Plumbing, Fire Protection

$22.67

$33.31

$35.29

$34.23

$38.51

$42.18

$8.27

$11.82

23.61

24.32

29.17

Electrical

$30.41

$35.01

$33.47

Electrical

$30.03

$38.13

$32.88

Electrical

$5.62

$9.35

Electrical

30.40

31.31

43.81

General Requirements, General Conditions & Fee

$20.14

$14.42

$14.69

$19.33

$17.67

$18.71

$13.31

$15.17

21.06

21.69

25.41

Contingency

$10.81

$13.09

$12.92

Contingency

$12.95

$9.80

$16.11

Contingency

$5.09

$7.60

Contingency

14.70

15.14

16.88

Total

$130.93

$147.97

$156.31

Total

$151.67

$161.28

$170.07

Total

$52.59

$79.08

Total

161.67

166.52

181.10

Notes: Currency is USD unless otherwise indicated; LC=Local Currency All costs are generation 1 Generation 2 costs have a 10-15% discount

Cushman & Wakefield

Office Fit Out Cost Guide 2026

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