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s companies refine their return-to-office strategies in 2025, many are prioritizing investments in high-quality office spaces that enhance employee experience and performance. According to JLL's U.S. and Canada Office Fit-Out Cost Guide 2025, this shift is driven by the need for adaptable workspaces that can withstand economic uncertainty.
The report highlights the importance of smart capital planning as organizations adapt their real estate strategies to uncertain conditions. Builders' works account for 38% of fit-out costs, with regional labor costs and specialty trades contributing to high variability. Mechanical, electrical, and plumbing systems, along with IT and security components, make up the next largest cost segments.
Despite economic volatility, JLL's research shows that 59% of U.S. and Canadian organizations plan to increase investment in office fit-outs over the next five years. To mitigate cost pressures, companies must adopt dynamic planning strategies, collaborate closely with project teams, and be prepared for potential cost fluctuations.
Sustainability, wellness, and adaptability are key drivers in the evolving office landscape. With average U.S. office fit-out costs at $280 per square foot and $278 CAD per square foot in Canada, companies must balance quality and cost in a constrained pipeline. Cities like New York, San Francisco, and Toronto top the list for highest fit-out costs, while cities in the South and Midwest offer more budget-friendly alternatives.
Looking ahead, JLL predicts continued emphasis on modular design, sustainability, and data-driven planning to help organizations achieve long-term objectives. Companies that invest now in adaptable spaces will reap lasting value as office environments continue to evolve. Strategic upgrades to existing spaces and proactive planning will be crucial in meeting evolving workplace standards.
