Office Build-out Cost Estimation
In order to retrofit or build-out an office space for your specific use, the tenant improvement allowance provided by the building owner is a basic element of any lease negotiation. How much should you expect to pay for the build-out or tenant improvements? One factor on which this depends is whether the space is new or refurbished. Determining your projected total occupancy cost will be key in your decision-making.
Without the being part of the space planning process, figuring build-out costs more specific than a general range is challenging because so many lease size strictures and building type options affect this estimate.
Ziegler Cooper Architects of Houston, TX, provide the Tenant Improvement Cost Guideline Matrix below for reference. The matrix is based on a single-floor 20,000-square-foot typical tenant that might locate in one of three building types – Class A, Class B and Class C. They may have finish requirements that range from Building Standard or slightly above, Moderately Above Building Standard or High Finish without being extravagant.
The matrix is offered only as a loose guideline, as your actual costs will vary based on the amount of reusable assets, the original space’s condition, the tenant size (full floor vs. half floor) and many other factors. The matrix is based on an average of three different general contractors that specialize in tenant improvement work as well as historic experience in the market. The contractors indicate that costs should increase slightly throughout 2012.
Courtesy of Ziegler Cooper Architects, Houston, Texas
