How Much Does a Commercial Buildout Cost Per Square Foot?
It is the first question on almost every call I take. "Ballpark, what does something like this cost per square foot?"
I understand why people ask. You are trying to figure out whether the space you love is even possible before you spend money on an architect. So let me give you the honest answer, which is a real number plus the reasons your number will be different.
What does a commercial buildout cost per square foot?
A commercial buildout cost is the price to turn a leased or owned space into a finished, usable interior, and it is usually quoted per square foot. According to Cushman & Wakefield's 2026 Office Fit Out Cost Guide, the average office fit out across the Americas is about $149 per square foot, and about $162 per square foot in the United States, up 5.5 percent year over year. Restaurants, medical suites, and labs typically cost significantly more than offices because of plumbing, ventilation, and specialty systems.
The short version
National averages are a starting point, not a quote.
The condition of the space you start with matters more than the finishes you pick.
Anything with water, gas, exhaust, or medical systems pushes the number up fast.
Long lead equipment and utility upgrades are the most common budget surprises.
The earlier a contractor sees your plans, the more accurate the number gets.
Why the national number is only a starting point
An average is built from thousands of projects. Yours is one project, in one building, with one landlord. The same 5,000 square foot office can cost very different amounts depending on what is already there when you get the keys.
Costs are also still climbing. The same Cushman & Wakefield report found that 79 percent of contractors expect labor and material costs to keep rising, with copper and concrete leading the way. If you priced a space a year ago, price it again.
The six things that move your price
1. What the landlord is delivering. A space with working HVAC, a finished ceiling, and code compliant restrooms is a very different starting line than a bare concrete box. (See Post 4 on landlord delivery conditions.)
2. Mechanical, electrical, and plumbing work. This is usually the biggest single slice of a buildout budget. Moving plumbing, adding circuits, or upsizing HVAC changes the number more than any finish choice.
3. Your use. A restaurant needs a hood, a grease interceptor, and gas. A dental office needs plumbing at every chair. A standard office needs mostly walls, power, and data.
4. The building itself. Older buildings hide surprises: asbestos, undersized electrical service, floors that are not level. Newer buildings are more predictable.
5. Schedule. Night work, weekend work, or a compressed timeline costs more. So does working around an occupied building.
6. Finish level. Yes, the countertops matter. They just matter less than people think compared to everything above.
Why restaurants and medical spaces cost more
It comes down to systems. A commercial kitchen needs a Type I hood, fire suppression, makeup air, a grease interceptor, and sanitary finishes. We explain each of those in our post on commercial kitchen code requirements. A medical suite adds plumbing at every exam room, upgraded electrical, and sometimes shielding or medical gas. More systems means more trades, more coordination, and more inspections.
How to get a real number early
Walk the space with a contractor before you sign the lease. We can tell you in an hour what the building is going to fight you on.
Get a conceptual budget during design, not after. This is what preconstruction is for.
Ask for the budget broken out by trade. A single lump number tells you nothing.
Use value engineering the right way. Our value engineering guide explains how to cut cost without cutting quality.
Compare bids on scope, not price. Why the lowest bid usually costs you the most walks through how.
Frequently asked questions
What is the average cost of an office fit out in 2026? Cushman & Wakefield's 2026 guide puts the United States average at about $162 per square foot and the Americas average at about $149 per square foot. Individual projects vary widely based on building condition and scope.
Why does a restaurant buildout cost more than an office? Restaurants require exhaust hoods, fire suppression, makeup air, grease interceptors, gas service, and washable sanitary finishes. Each of those is a specialty system that offices do not need.
Does a tenant improvement allowance cover the whole buildout? Sometimes, but often not. The allowance is a negotiated amount from the landlord, and the gap between the allowance and the real cost is paid by the tenant.
How accurate is a per square foot estimate? It is useful for deciding whether a project is feasible. It is not accurate enough to sign a lease on. A walkthrough and a trade by trade budget are what you need for that.
Do costs go down for larger spaces? Usually a little, because fixed costs like permits, mobilization, and supervision are spread over more square feet. Scope still matters more than size.
Level Check
A per square foot number is a starting point. It tells you whether the road is worth going down. The real number comes from someone walking your space, reading your plans, and telling you what the building will cost to change.
If you are looking at a space and want to know what it will actually take, take a look at how we handle Office Fit Outs, Food Service, and Health Sciences buildouts, or reach out and we will walk it with you.
Frank Kenny is the owner of F. Kenny Construction, a commercial general contractor serving the greater Philadelphia region.
