How companies are addressing rising office fit-out costs

Many employees continue to resist employers’ calls back to the office. From noise and a lack of privacy, lots of offices still lack the comforts of home.

Companies are addressing the issues with better workspaces. But there’s more often than not a major hurdle: costs are rising for construction, sustainable materials and fittings like sound-proof phone booths or electrical equipment.

Around the world, labor shortages and wage increases are compounding the issue. In EMEA alone, labor costs have risen over 12% in the last 12 months and the average fit-out cost is up 5.2% year on year, according to JLL’s latest Fit-Out Cost Guide.

In Asia Pacific, material price increases have stabilized, but high energy costs and supply chain disruption remain factors, while in the Americas, evolving office design strategies and occupier requests are increasing tenant-influenced costs.

“Supporting both hybrid and face-to-face work comes at a price,” says Andrew Hudson, Senior Director for Project Execution with JLL PDS. “It requires adaptability, collaborative and private space, multi-functional rooms and integrated technology solutions – all of which take capital expenditure.”