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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Cushman & Wakefield
Office Fit Out Cost Guide 2026
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