Stay, renovate or relocate?

Your office is more than a place to work. It's a driver of culture, productivity and talent. Whether your lease is expiring or you're just reassessing your footprint, this decision deserves a hard look at the data.

If your lease has fewer than five years remaining, now is the time to act. You need a strong workplace to attract and keep good people and clients, and good Class A buildings are in short supply.

Offices in 2026 look different than they did even a few years ago. Things like integrated building systems, high-spec AV and stronger power and cooling used to be extras. Now tenants expect them as standard.

A quality fit-out costs more than it used to, and it needs to flex as work patterns keep changing.

Once the business case for a better workplace is clear, the next question is whether to renovate in place or relocate entirely. The right answer depends on your lease timeline, sustainability goals, workforce needs and capital strategy.

Construction costs are rising. Per JLL’s 2026 U.S. and Canada Fit-Out Cost Guide, a medium-quality corporate office now averages $295 per square foot, with total fit-out costs up 3% to 10% year over year through mid-2026.

Per the same research, labor, metals and mechanical systems are behind most of that increase. Contractors are struggling to find skilled trade workers, wages are climbing and tariffs are raising material costs. MEP (mechanical, electrical and plumbing) and technology trades are moving fastest and carry the most risk of further cost increases.

If retrofitting makes sense, here are the key advantages and considerations to weigh.

Relocation offers a clean slate and can unlock significant long-term value if planned carefully.

Wherever you land, how you design the space decides how well it pays off in productivity, retention and culture. Two decisions dominate: how you configure the layout and the quality of finishes you choose.

Stay, renovate or relocate?

According to JLL’s U.S. and Canada Design Trends and Cost Guide, cost benchmarks can vary by up to 12% across typologies in the U.S. and Canada, or up to 35% when also considering variation in finishes. No single typology or cost benchmark will serve an entire portfolio.

The spread between the highest- and lowest-cost U.S. and Canadian markets has widened

Regional cost hierarchy, according to our latest Fit-Out Cost Guide:
 

Highest cost (>$315/sqft): New York, San Francisco, Boston
High cost ($300-$315/sqft): Coastal gateway markets
Mid-range ($265-$300/sqft): Chicago, Seattle, Washington D.C.
Most competitive (<$265/sqft): Dallas, Atlanta, Sun Belt markets

Gateway markets are paying more for specialty trade and running into capacity limits. Sun Belt markets are seeing the same pressures, but cheaper labor and lower demand are keeping costs down.

Typical fit-out cost breakdown
 

The following categories represent the primary cost drivers for most tenant fit-out projects:

The latest Fit-Out Cost Guide also shows average % cost allocation in the U.S. and Canada:
 

• Builders’ works: 38%
• M&E services: 29%
• FF&E: 16%
• Security, IT & AV works: 10%
• Professional services: 7%

Regardless of whether you stay or go, how you manage the project is as important as what you decide. Good project management can be the difference between a fit-out that runs over budget and one that pays off for years.

Up to 5% savings on your fit-out cost
 

Experienced project managers can help you avoid up to 5% in unnecessary fit-out costs through smarter procurement, vendor management and schedule optimization.

"The earlier you can bring in a cost manager to your capital planning, the greater the opportunity they have to improve your cost efficiency and capture savings."
— Daniel Pomfrett, Americas Cost Management Lead, JLL

A dedicated project manager brings end-to-end support, including:

• Lease negotiation strategy and market intelligence
• Space planning and design programming
• Cost management and vendor procurement
• Construction oversight and schedule management
• Technology and AV coordination
• Timely, on-budget project completion

Every office decision is unique, but the sequence for making a smart one is consistent. Follow this process to move from uncertainty to a clear, confident plan.

Our Project and Program Management team can walk you through every stage of this decision, from lease strategy and space planning to construction oversight and your move. Get in touch and let’s start working through the numbers together.