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%
0%
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
$0
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
28
29
Cushman & Wakefield
Office Fit Out Cost Guide 2026
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