If you’re budgeting for office interior build outs what can you expect to spend? The answer to this question relies on a few different things, including building size, age, and quality of materials.
Turnkey Build Out Vs. Tenant Improvement Build Out
A boring office space and a great space include one difference: quality of interior office build out. No one has an unlimited budget but depending on what you have to spend and other factors the best course of action may vary between a turnkey build-out and a tenant improvement build-out.
A turnkey build-out means a landlord finances the entire build out out of pocket and the renter comes in and takes over the property for use right away. The tenant comes to the landlord prior to leasing the building with all of the design elements they need. These factors are compromised on in exchange for their tenancy. This type of build out typically includes walls, lighting fixtures, electrical components, closets and any other sensible requests. The tenant also determines carpet and paint colors. Even though the tenant gets to pick out many elements they have very little overall control, and will pay whatever the landlord sees fit based upon space and office improvements. The one major downside to this arrangement is that landlords may do everything cheaply trying to save money. This is a downer for the tenant when they get into the new space and everything is cheaply put together and unreliable.
A tenant improvement build-out puts the tenant in control as they select the contractor, and everything else they want for the build out because it is paid for out of the tenant’s pocket. The landlord and tenant must come to an agreed price per square footage that both parties see as fair post office build out. When tenants are in charge of the build out they stay in budget because it’s coming out of pocket but they do exactly what needs to be done in order to prosper. As a result, everyone wins, which is why this is often a recommended option unless you are renting out over 10,000 square feet of space or the tenant is only signing a short-term lease.
How Much Does The Average Interior Office Build Out Cost?
Everyone wants to know: How much does an office interior build out really cost? The answer is far more complex than a simple set of numbers can define alone.
To give you a ballpark figure here are some average prices by square footage for office interior build outs.
The average price per square foot ranges between $40 and $60, this includes standard finishes for paint, carpet, ceiling tiles, lighting, etc.
If you go with moderately above average finishes the costs increase to around $75 to $100 per square foot.
Using a higher finish that is nice but not extravagant will generally cost over $100 per square foot. Where you live and the current state of the market will greatly influence these costs. Also, these average prices are indicative of union labor prices.
Another influential factor in the overall cost of your interior office build out is the condition of the building. Buildings are classified into three groups, new building, 2nd generation A/B, and second generation B/C. (Reference)
Is The Bid Usually Too High Or Too Low?
The original bid you get for any project related to construction, be it pouring brick masonry or installing a decorative wall, is not going to be the same as the final bill. That’s just the way it is. Unforeseeable factors are always a likely possibility and they have the power to greatly increase or decrease the final total. Some common price influences include changes in labor wages, increased cost of materials, delivery delays, weather conditions, and the list goes on and on.
Due to fluctuations here and there throughout a project it’s very easy for costs to get out of hand without noticing. As a result, the final bill ends up way over budget or the work isn’t done on time, or even to proper standards. This is why having someone managing and maintaining any project and its related costs throughout the entire process is so important.
A contracted project manager will constantly measure how productive workers are, how equipment is performing to get the job done on time and in line with the budget, as well as dishing out the proper funds to the proper places. This sort of attention to detail can make all the difference in the end results of an office interior build out. In fact, the service pretty much pays for itself.
Contact Perillo Construction to learn more about our full service consulting services at competitive prices.