Occupiers invest in office spaces to enhance experience and performance

CHICAGO, May 13, 2025 – 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. JLL’s 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.

“Our 2025 guide reflects the complex challenges facing organizations as they navigate economic uncertainties while striving to create high-quality, sustainable workspaces,” said Louis Molinini, Head of Project and Development Services, Americas, JLL. “Despite these challenges, we're seeing a continued focus on office quality and flexibility, driven by the need to enhance employee experience and performance.”

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 – the core, on-site activities and services in construction – account for 38% of fit-out costs, the largest share, and have the highest variance between and within countries. Cost variations for builders' works are heavily influenced by labor, with local wages and proportion of specialty trades required for projects having considerable impact.

Mechanical, electrical and plumbing services and IT, AV and Security are the next highest costs, with baseline requirements generally increasing. Specification of materials and finishes can account for more than a 20% difference in total costs.

“While uncertainty is theme of 2025 so far, there are clear priorities for what makes an excellent office for occupiers,” said Andrew Volz, Research Manager, Project and Development Services, JLL. “Quality, adaptability and forward looking tech capacity are in demand regardless of any current volatility.”

The U.S. cost landscape is characterized by considerable uncertainty due to ongoing trade tensions and evolving policies. Despite these challenges, 59% of organizations in the U.S. and Canada plan to increase investment in office fit-outs over the next five years – according to JLL's 2024 Future of Work survey. Changing trade policy and economic conditions have the potential to disrupt costs and project delivery nationally. It is difficult for occupiers to proactively manage real estate strategies and maintain cost discipline

“Helping organizations focus on short-term, actionable steps that align with long-term goals and regularly reassess market conditions is key,” added Molinini. “Close collaboration with project teams and flexible budgeting strategies are crucial to accommodate potential cost fluctuations and achieve success for our clients.”

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 reinforce the demand for premium, environmentally conscious workspaces. Depending on layout typology and quality, average cost for U.S. office fit-outs is $280 USD per square foot. Coastal cities like New York, San Francisco and Los Angeles remain the most expensive for office fit-outs, while cities in the South and Midwest offer more competitive pricing.

While in Canada, the average cost for office fit-outs is $278 CAD per square foot, with Toronto and Vancouver as the most expensive cities.

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.

Sustainability remains a key consideration in future-proofing offices, with greater incorporation of eco-friendly materials, energy-efficient systems and waste reduction strategies. The gap between base and high-quality spend continues to narrow due to increased tech readiness requirements. By leveraging data for better planning, companies are aligning fit-out projects with long-term corporate goals. 

Prioritizing adaptive capital planning will be key to navigating uncertainty. This involves focusing on short-term, actionable steps that are aligned with long-term objectives, while continuously reassessing market conditions and adjusting strategies accordingly to maintain flexibility.

Despite these uncertainties, a strong demand for high-quality, adaptable spaces persists. With a limited office pipeline and uncertain replenishment timeline, strategic investments in upgrading existing spaces are crucial to meeting evolving workplace standards. Working with partners who can evaluate emerging technologies and assess an organization’s long-term goals, businesses can capitalize on lasting trends and enhance workplace environments.

JLL Project and Development Services is a leader in the advisory, design, management and delivery of commercial real estate projects for the world’s most prominent corporations, educational institutions, public jurisdictions, healthcare organizations, industrial facilities, retailers, hotels, sports facilities and real estate owners. JLL’s project management team comprises 9,300 project managers across 80 countries with $87.4 billion in projects managed annually. JLL’s design teams consist of 1,200 design professionals from over 50 countries, across more than 50 studios and three Centers of Excellence to service clients with end-to-end design solutions. Visit jll.com/deliver-projects to learn more.

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