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%
0%
-20%
Source: Cushman & Wakefield Project & Development Services
30
31
Cushman & Wakefield
Office Fit Out Cost Guide 2026
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