As corporations worldwide continue to adjust their hybrid policies to favor in-office attendance, the office sector has regained a central role in commercial real estate. But improving office space to suit current needs comes at a price, reported JLL in its “Global Office Fit-Out Costs Guide 2025,” which analyzes data from 68 cities in 40 countries around the globe.
Across all regions surveyed, office fit-out costs have increased in the last 12 months to varying degrees. With 59% of organizations globally planning to increase investment in space design, multinational corporations must understand regional disparities in office fit-out costs to inform strategic planning. As with previous years, JLL found fit out costs are highest in U.S., Canada, U.K., Switzerland, Saudi Arabia and UAE, Singapore and Japan.
“Five years following the start of the global pandemic, we continue to see the evolution and growing momentum toward the office sector,” said Cynthia Kantor, CEO, project and development services, work dynamics. “While global fit-out costs vary greatly, depending on regulations, design preferences and functional requirements, our team and the Global Office Fit-Out Costs Guide helps organizations plan their office spaces and projects in the face of market uncertainty.”
Regionally, a significant premium for office fit outs is commanded by North America, where the average fit out costs is $3,070 per square meter, compared to the global average of $1,830 per square meter. In Latin America the average fit out cost is $1,790, followed by Europe, the Middle East and Africa, which present a wide range of office fit-out costs, with an average of $1,970. Asia Pacific offers the lowest regional average fit out cost at $1,460.
Global variations between major cities also persist. U.S. cities dominate the top 20 cities by office fit-out cost globally, alongside other major cities such as Vancouver, Tokyo, London and Dubai. Alternatively, global cities with high growth across India, South Africa, Vietnam and China offer among the lowest fit-out costs globally, though they are actively experiencing high construction growth and an evolving cost landscape.
Of the markets assessed, fit-out cost increases over the last 12 months were driven by inflation, material costs and currency volatility. Three-quarters of markets reported increases in raw material prices, and half have experienced labor shortages in the last 12 months that have increased construction costs.
Amid growing interest in healthier, energy-efficient workspaces, paired with the friction created by a lack of immediate supply, demand for sustainable fit outs is on the rise, with 60% of markets surveyed reporting an increase in client inquiries for a more sustainable fit out in the last 12 months.
