How much does an office fit-out cost?
A key question to consider at this stage is how much space do you need?
There are no fixed metrics for office occupancy, businesses used to work on as low as 65 sq. ft per person, but post covid with agile working and new working practises, we have seen the requirement to be closer to 100 to 120 sq. ft per person.
The best way to ensure you choose the perfect space for your business is to conduct a simple space planning exercise, to map out your current requirements to see how much space you will need. The more traditional route of looking for new space and then seeing if you can fit into it can be a costly and time consuming process.
How can the budgets vary so much for a new office? Please read on where we will expand on how to develop budgets and plans for your project.
A key consideration is the total project cost over the term of the lease or the added value if you own the property, it may be a quicker and simpler process, to take the more expensive grade A space and just move straight in with minimal works at the lower level of expected budget.
Alternatively, it may make more sense to take on the cheaper rental property and make the space your own with a higher level of fit-out cost, but a reduced project cost over the tenure of the lease, which can also vastly reduce your ongoing running costs with new and more efficient heating, lighting etc.
Fit-out and refurbishment budgets can be leased to spread the cost over the lease term if required.
So, we can start to see that answering the question of “how much does a fit-out cost?” will need a little more detail and research to give an accurate and meaningful answer.
A successful project is not just judged on how much it cost, but is based on business improvements such as looking at how to support productivity, staff engagement and retention. Now agile working is becoming the norm, a new office offers up huge opportunities for improvement and makes a big difference to the company's performance. Whilst we are focusing on potential budgets, we also focus on the why and how to get the most from any project.
What is my starting point, and what do I need to achieve? Make sure to bear in mind that the difference in rent values will differ hugely and must be considered in the total investment for the project.
Grade A office space fit-out (£30 per sq. ft)
If you have a ready to move in Grade A office space, you will only need to make minor alterations to make a new home for your business.
Your space will already have lighting, heating, ventilation and a raised access floor, you just need to add desking, chairs, acoustics and partitions.
Whilst you will be paying higher rent, the cost of a fit-out is much lower as there is less work to carry out in terms of electrical installation.
Dilapidated office space fit-out (£50 per sq. ft)
A dilapidated office space will need some electrical upgrades as well as new fixtures and furnishings.
In order to move into this space you will need to upgrade the lighting and ventilation and add new carpets, desks, chairs and storage.
Your rent will be lower than a grade A office space, but you will need a slightly bigger budget to fit-out your new space. This can be a cost-effective solution when moving office space.
Shell & Core office space fit-out (£100 per sq. ft)
A blank canvas that requires full mechanical and electrical installations as well as a ceiling and flooring.
If you have chosen a Shell & Core office space you will need to invest in ventilation, a fire alarm, air conditioning, data cabling and furnishings.
This type of space will require a larger investment in electrical and mechanical installations but, your rent will be much lower.
Fit-Out Cost Calculator
• Grade A - £30/sq. ft
• Dilapidated - £50/sq. ft
• Shell & Core - £100/sq. ft
Further details on each office space category are outlined above.
Total Summary
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Please note that office fit-out costs can vary significantly depending on location. For example, projects in London typically come with higher rates compared to other regions.
How do we estimate project values and what detail do we need to start developing plans for which space is best for your organisation? We review all projects on a regular basis and update the rates with recent and accurate information.
Most projects can be split into three main categories to help develop budgets with a small allowance for IT improvements.
For example:
25% of budget is spent on fabric elements
The parts we need to build that are fixed to the building, such as; partitions, kitchens, toilettes, gyms, break out areas, receptions, acoustic attenuation and signage.
50% of budget goes on Mechanical & Electrical (M&E)
To make any office work we need power, data and lighting. There are many options around how to heat and vent a space to ensure compliance with building regulations, which we will get into in more detail later. Safe to say this can represent a large part of any project's budget.
20% of budget for Free Standing Fixtures and fittings (FF&E)
Office furniture - seating - storage etc. We often move existing FF&E over to reduce the costs, but with a new space and new working practices we take the opportunity to support new agile working to deliver huge productivity improvements as well as staff engagement and retention, which can be achieved with the FF&E elements. This is the bit the people touch and interact with.
5% of budget on IT improvements
You may need to add new data cabling to better connect your employees as well as installing new AV systems to your meeting rooms.
How to develop realistic budgets and timescales for a new office? Most of our clients at the planning stage want to gain an understanding on budgets with timescales and then how to buy or procure the project to deliver best value.
We would split a project into two distinct phases: design and planning followed by build.
Split out the design and specification to build an accurate design with costs to enable a procurement process. There are several options around procurement that can be followed but if you own the design and the spec you can control the procurement and cost.
Once you know what you require you can go to the marketplace to look for the best placed companies to deliver your project.
If it is a simple case of adapting the space with new furniture and small alterations you could split up the work packages and manage the project yourself.
If you have a more complicated project which will involve several contractors you will need to consider CDM regulations along with Building and Fire regulations which a design partner will help manage at the planning stages and then be able to support through the build phase.
Ready to take the next step?
We are happy to discuss your requirements to find out what the best solution is for your business and your people. Throughout the initial stages we will clarify the details and create the design concept, making sure that it fits your budget, timescales and requirements.
As many projects also involve refurbishing washrooms, kitchens, AV and acoustics, and canteens, pop in your information for quick estimates, site visits, or detailed tailored quotations.
Speak to our team:
(0)114 254 1900- Sheffield
(0)141 473 2048 -Glasgow
(0)203 435 6741- London
(0)124 866 3321 - Wales