The value of the office has been reevaluated globally, identifying a particular focus on quality and flexibility in the U.S. and Canada. Increased emphasis on structured policies and encouraging in-office attendance in 2025 continues to drive many corporate occupiers to create high-quality office spaces that enhance employee experience and performance.

While the current economic climate may encourage cautious decision-making, forward-thinking companies focused on growth and expansion continue to invest strategically in office fit-outs. These investments aim to support long-term goals and capitalize on potential benefits in the coming months.

Our U.S. and Canada Office Fit-Out Cost Guide 2025 provides crucial insights into market trends and cost drivers to inform capital planning and office fit-out strategies in this dynamic environment.

• Uncertainty is driving market dynamics. Multiple factors reshaping business investment assumptions currently: policy shifts in trade, immigration, and federal spending are creating short-term impacts that companies must balance against long-term needs while competing for limited high-quality space and little new product. As a result, builders and occupiers alike are having difficulty staying proactive and managing these challenges.

• Office quality priorities remain constant. Organizations continue to prioritize high-quality, sustainable spaces that support employee well-being and productivity. The persistent focus on wellness, collaboration, and sustainability reflects the enduring value of the office environment. Corporate sustainability goals and local regulations further reinforce the demand for premium, environmentally conscious workspaces.

• The future office is top of mind. Organizations are prioritizing design strategies that can adapt to evolving workplace needs while balancing short-term uncertainties with long-term plans. Modular and adaptable design solutions, supported by advanced space utilization monitoring are increasingly common, enabling companies to accommodate fluid workspace requirements and support the accelerating return to office trends.

The average costs of fitting out an office vary geographically, with costs in each region influenced by material and labor costs, market practices and construction regulations. The average cost in Q1 2025 for moderate style medium- quality office was $280 USD per square foot and $278 CAD per square foot for the U.S. and Canada, respectively.

The U.S. and Canadian construction industries are grappling with a complex array of cost pressures in 2025 while occupiers continue to reevaluate and optimize their space needs under new economic uncertainty. Organizations are seeking to understand the relative cost factors and potential associated outcomes to better inform the design and delivery of office fit-outs as a result.

Builders works occupy the largest share and have the highest variance between and within countries:

• Specification of materials and finishes can have a significant impact on the quality of workplaces but also can account for more than a 20% difference in total costs.
• Cost variations for builders works are heavily influenced by labor, with local wages and proportion of specialty trades required for projects having considerable impact.
   

M&E services and IT/AV/Security are the next highest costs and share some similar properties:
 

• The floor for these costs has generally increased, as corporate requirements continue to converge on a higher baseline. These categories enable much of the adaptability and value that is being prioritized by occupiers in the current period of uncertainty.

Navigating uncertainty through adaptive planning. The U.S. and Canadian fit-out markets are facing elevated uncertainty due to evolving trade policies, economic fluctuations, and shifting workplace dynamics. In this environment, capital planning is the best opportunity to stay proactive despite uncertainty:

• Focus on short-term, actionable steps that align with long-term goals
• Regularly reassess market conditions and adjust strategies accordingly
   

Capitalizing on the persistent demand for quality. Despite economic uncertainties, there is a continued demand for high-quality space that will be able to support business needs through change. Given a limited office pipeline and an uncertain timeline to replenishment:

• Invest strategically in upgrading existing spaces to meet evolving workplace standards
• Focus on creating environments that support employee well-being, productivity, and changing demand
   

Embrace long-term value drivers and trend. The gap between base and high quality spend continues to narrow due to continued increases in the acceptable floor of tech readiness. These tools make for better workplaces and enable better planning:
 

• Align fit-out projects with long-term corporate goals and iterate using data analytics and performance metrics
• Work with partners that can evaluate emerging technologies and consider their long-term value in context of specific goals