Construction

How Much Does Office Space Cost?

How much does office space cost? In this article, learn the cost of building and renting an office space and the factors that impact it.
Togal.AI
10 minutes

How Much Does Office Space Cost? 

On average, office space costs $313 - $660 per square foot to build, with fewer floor levels resulting in lower costs. But commercial construction projects, including office spaces, come with varying price tags. This is especially true with the many factors that impact the final construction costs, including size,  labor, materials used, and location. 

Thus, general contractors that bid on these projects must provide a fast and accurate cost estimate to ensure that all factors are considered. This helps them avoid any possible cost overruns that could ruin its profitability while increasing their chances of winning the project.

Major general contractors achieve this by streamlining the takeoff and cost estimation process. They do this by leveraging AI estimating software that helps them complete weeks of work in just 10 seconds with 99% accuracy. 

Read further to learn more about the cost to build or rent an office space, the factors that impact it, and the AI takeoff software you can use to achieve a fast and human-error-free construction estimate.

Disclaimer: The pricing stated here is based on average data from third-party research. Prices may still vary due to differences in seasonality and supplier.

Office Space: How Much Square Footage Do You Need?

Size or square footage is one of the main factors that greatly impact both the construction costs and renting costs of an office. To determine how much office space is needed, first look at the number of employees that your company has. 

On average, 75 sq. ft. is needed per employee. Thus, if you have a total of 30 employees, then you’ll need a 2,250 sq. ft. office space. 

Renting Vs Building Office Space: Pros and Cons

The cost of office space is largely impacted by whether you rent or build the office from the ground up. Obviously, each approach offers varying costs, advantages, and disadvantages. Read the tables below to learn more.

Rent Vs Build: Estimated Costs

Approach Estimated Costs
Renting an Office Space $2 - $23 per sq. ft.
Building an Office Space $313 - $660 per sq. ft.

Source: Starter Story  andBigRentz

Rent: Pros and Cons

Pros Cons
A flexible approach for those uncertain about staying in one location long-term Random increase in monthly rent
Becomes operational instantly right after moving to the location The structure is less personalized to the needs of the business.
Lower upfront cost and ideal for those with minimal budget The renovation and installation of certain equipment might be prohibited.
Maintenance and repair costs are taken care of by the building owner Landlords may impose rules and regulations that limit the use of your space eg. limited after-hour access

Build: Pros and Cons

Pros Cons
Personalized design and construction plan to suit company needs High upfront costs in terms of buying land, material costs, and construction costs.
Stay in desired location long-term Owning the building means you have to pay for the maintenance and repair costs
Fixed costs compared to rental properties where there are random increases in monthly payments due to inflation Unexpected situations may result in the need to move location and sell the office space
Opportunity to rent a portion of your office and add a new income stream Longer time is needed to process permits and build the office space before becoming operational

Office Space Rent Costs

How Much Does Office Space Cost in the U.S.?

The study conducted by Commercial Edge shows a snapshot of the top 50 priciest U.S. office submarkets during the fourth quarter of 2021. These were ranked by looking at the average asking rents per square foot. The result reveals that California submarkets took 27 of the 50 top spots in office rents ranking. 

Read the table below to learn more about the priciest office space cost per square foot by city and state. 

Top 50 U.S. Office Submarkets With the Highest Prices in Q4 2021

Rank State / District Market Submarket Avg. Asking Rent Per Square Foot
1 California San Francisco Menlo Park $118.73
2 New York Manhattan Plaza District $107.41
3 California Bay Area Mountain View - West $95.64
4 California Bay Area Palo Alto $93.49
5 California San Francisco Redwood City $92.50
6 New York Manhattan Chelsea $84.67
7 New York Manhattan Times Square - Hell's Kitchen $81.24
8 California Bay Area Sunnyvale - West $78.01
9 California Los Angeles Beverly Hills $75.20
10 California San Francisco San Francisco - South Financial District $74.83
Rank State / District Market Submarket Avg. Asking Rent Per Square Foot
11 California Bay Area San Jose - CBD $70.13
12 Florida Miami Brickell $68.52
13 California Los Angeles Santa Monica $66.43
14 California Los Angeles West Hollywood $64.66
15 California San Francisco San Francisco - North Financial District $63.84
16 California Bay Area San Jose - West Valley $63.53
17 New York Manhattan Gramercy Park $62.99
18 California San Francisco Redwood Shores $62.71
19 California San Francisco San Mateo $62.62
20 California San Francisco Larkspur $60.04
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
21 New York Manhattan Murray Hill $59.16
22 California Bay Area Oakland - Downtown $59.07
23 Texas Austin Downtown $58.93
24 District of Columbia Washington, D.C. - Suburban Maryland East End $58.17
25 California Los Angeles Hollywood $56.70
26 New Jersey New Jersey Hudson Waterfront South $56.52
27 Massachusetts Boston Boston - Central Business District $56.41
28 District of Columbia Washington, D.C. - Suburban Maryland Washington DC CBD $56.31
29 New York Manhattan Financial District $56.26
30 California Los Angeles Wilshire Corridor $56.24
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
31 California Los Angeles West Los Angeles $55.88
32 California San Diego Carmel Valley $55.60
33 Massachusetts Boston Boston - Downtown $54.77
34 California Los Angeles Culver City $53.48
35 California San Francisco San Francisco - SOMA $52.70
36 California Bay Area Campbell $52.22
37 California San Francisco Burlingame $51.50
38 California San Diego Del Mar - Encinitas $50.51
39 Texas Austin South $49.66
40 Pennsylvania Philadelphia Main Line $49.51
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
41 Connecticut Bridgeport - New Haven Greenwich $48.94
42 Florida Fort Lauderdale Hollywood $48.63
43 Washington Seattle Bellevue $48.58
44 Connecticut Bridgeport - New Haven Stamford $48.22
45 California San Diego Downtown $47.67
46 Florida Fort Lauderdale Fort Lauderdale CBD $47.48
47 Florida Miami Coral Gables - Downtown $47.04
48 Virginia Washington, D.C. - Suburban Maryland Rosslyn $46.69
49 California San Diego University City $46.55
50 Texas Dallas - Fort Worth Uptown/Oak Lawn $46.47

Source: CommercialSearch

How Much Does It Cost to Rent Office Space By Company Size?

On average, renting an office space costs around $2 - $23 per sq. ft. If the average square footage required per employee is 75 sq. ft., then a company with 50 employees will need to rent a 3,750 sq. ft. office space which will cost around $7,500 - $8,6250. 

Read the table below for the estimated cost per company and office size. However, remember that this doesn’t take into consideration additional fees for added amenities, renovations, and installation of certain equipment.

Small Enterprise (10 - 49 employees)

Company Size Office Space Size Low-End High-End
10 750 sq. ft. 1500 17250
20 1500 sq. ft. 3000 34500
30 2250 sq. ft. 4500 51750
40 3000 sq. ft. 6000 69000

Source: Starter Story

Medium-Sized Enterprise (50 - 249 employees)

Company Size Office Space Size Low-End High-End
50 3750 sq. ft. $7,500 $86,250
75 5625 sq. ft. $11,250 $129,375
100 7500 sq. ft. $15,000 $172,500
125 9375 sq. ft. $18,750 $215,625
150 11250 sq. ft. $22,500 $258,750
175 13125 sq. ft. $26,250 $301,875
200 15000 sq. ft. $30,000 $345,000
225 16875 sq. ft. $33,750 $388,125

Source: Starter Story

Large Enterprise (250+ Employees)

Company Size Office Space Size Low-End High-End
250 18750 sq. ft. $37,500 $431,250
350 26250 sq. ft. $52,500 $603,750
450 33750 sq. ft. $67,500 $776,250
550 41250 sq. ft. $82,500 $948,750
650 48750 sq. ft. $97,500 $1,121,250
750 56250 sq. ft. $112,500 $1,293,750
850 63750 sq. ft. $127,500 $1,466,250
950 71250 sq. ft. $142,500 $1,638,750
1000 75000 sq. ft. $150,000 $1,725,000

Source: Starter Story

Office Space: Tenant Improvement Costs Per Square Foot

Tenant improvement costs refer to the expenses incurred by the landlord or property owner to customize a commercial space, such as an office, for the specific needs of the tenant. This can include the cost of construction, renovation, and installation of fixtures and finishes, as well as other expenses related to the customization of the space. 

Tenant improvement costs are typically negotiated between the tenant and landlord as part of the lease agreement and may be covered in whole or in part by the landlord. Here are some of the potential costs you should expect: 

Type Description Average Costs
First-generation build-out Initial construction or customization of a commercial space. $150 per square foot
Second-generation build-out Renovation or redesign of an existing commercial space. $112 per square foot

Source: Globest

Office Space Construction Costs

How Much Does Office Space Cost Per Type?

The cost to build an office per square foot is largely impacted by whether you’re building a single-story building, mid-rise, or high-rise. A single-story building usually costs $313 per sq. ft. A mid-rise office space costs $562 per sq. ft., and a high-rise office space costs $660 per sq. ft.

The more floors in the building, the greater the need for structural support to withstand strong winds and earthquakes. Thus, requiring structural specialists and other construction experts, along with sturdy and high-quality materials that will surely bump up the cost. 

Cost to Build an Office Building Per Type

Explore the varying office building construction cost per square foot, depending on the type, namely single story, mid rise, and high rise. 

Cost to Build an Office Building Per Type


Type Average Cost Low - End Cost High-End Cost
Single-Story $313 per sq. ft. $289 per sq. ft. $437 per sq. ft.
Mid-Rise $562 per sq. ft. $330 per sq. ft. $870 per sq. ft.
High-Rise $660 per sq. ft. $430 per sq. ft. $1001 per sq. ft.

Source: Levelset, Proest

Office space construction cost per square foot

Source: Levelset, Proest

Office Build Out Costs 

A high-end office build-out can cost around $243 per square foot. It's normal to expect to pay more per square foot for an office buildout, even if the company chooses a traditional office floor plan with dedicated offices and desks.

The average cost per square foot of an office build-out with bench-style seating and smaller collaboration and meeting rooms is between $194 and $221. But it can also  reach up to $257 per square foot if you’re opting for higher-quality custom flex spaces.

Office build-outs that incorporate workstations in an open setting with private offices and collaborative workspaces can cost around $205 - $275 per square foot. 

Lastly, build-outs with a higher percentage of large conference rooms and private offices can cost between $212 - $290. 

Features Low-End High-End
- Bench style seating
- Smaller Collaboration rooms
$194 per square foot $221 per square foot
- Workstation in an open setting
- Private offices
- Collaborative workspaces
$205 per square foot $275 per square foot
- Higher percentage of private offices
- Bigger conference rooms
$212 per square foot $290 per square foot

Source: Crexi 

Cost to Build an Office in the U.S.

Location impacts land costs, material prices, labor costs, and the permits needed. For example, a location that’s prone to earthquakes will require stricter building requirements which will increase material and labor costs. 

Review the table below to learn more about the average construction costs of offices per city as of 2021. 

Office Building Construction Cost Per Square Foot and Per City

Shown below are office building construction costs per square foot in select cities in the U.S. For prime office buildings, New York has the highest office construction costs per square foot while Portland has the lowest, with $272.50 per sq. ft. For secondary offices, San Francisco has the highest construction costs while Las Vegas has some of the lowest.

Location Prime Secondary
Portland $272.50 per sq. ft. $260 per sq. ft.
Las Vegas $275 per sq. ft. $162.50 per sq. ft.
Phoenix $285 per sq. ft. $167.50 per sq. ft.
Los Angeles $300 per sq. ft. $222.50 per sq. ft.
Denver $345 per sq. ft. $205 per sq. ft.
Chicago $365 per sq. ft. $227.50 per sq. ft.
Seattle $397.50 per sq. ft. $217.50 per sq. ft.
Washington $412.50 per sq. ft. $275 per sq. ft.
Honolulu $427.50 per sq. ft. $252.50 per sq. ft.
Boston $450 per sq. ft. $275 per sq. ft.
San Francisco $527.50 per sq. ft. $405 per sq. ft.
New York $595 per sq. ft. $365 per sq. ft.

Source: Statista 

Office Space: Material Costs

Here’s a commercial construction cost breakdown, focusing on the material expenses needed when you build an office space.

Description Estimated Costs
Insulation Insulation ensures comfort in the office regardless of the season and can be in the form of foam, cellulose, or fiberglass. $0.12 - $6.87 per sq. ft.
Sound-proofing Sound-proofing encourages focus and privacy among employees and can be achieved through acoustic panels, foam insulation on the walls, and mass-loaded vinyl on the floors. $1,000 - $2,500 (includes labor, materials, and tools)
HVAC An effective HVAC system ensures that all employees are comfortable through adequate heating, ventilation, and air conditioning. $5,000 - 12,500 for a new HVAC system
Wiring This includes cable and electrical outlets that enable office equipment such as computers and telephones. $120 - $200 for electrical outlets.
Office Supplies This includes regularly used office items such as pens, papers, markers, and more. $50 - $100 per month per employee
Internet Internet is required to connect via email, phone, and meetings. Internet costs will vary depending on your chosen provider. $36 - $58 per month
Equipment This includes computers, printers, and copiers. $65 - $700 for computers
Furniture This includes office desks, tables, chairs, and storage $285 – $1,200 for office desks
$69 - $610 for office chairs

Sources: Various Sources

Office Space: Labor Costs

Here are some of the labor costs that you need to consider when building office space. 

Labor rate for construction

Construction Professional Rate
Architect $125 - $250 per hour
Carpenter $35 - $100 per hour
Electrician $50 - $100 per hour
General Contractor 10% – 20% of the total project
HVAC Technician $50 – $150 per hour
Interior Designer $50 – $200 per hour
Landscape Designer $50 – $150 per hour
Painter $20 – $50 per hour
Plumber $45 – $200 per hour

Source: HomeAdvisor and HomeGuide.

Commercial Building Costs: Office Space vs. Other Building Types

How much does it cost to build a commercial building? Well, it varies depending on the building type. This is because, depending on the building type, the overall purpose of the space changes. For example, restaurants and hospitals need smoother surfaces to encourage a sterile environment, while medical centers need a space large enough for large medical equipment. 

Office buildings typically have more expensive commercial construction costs compared to schools and retail due to their specific requirements for larger floorplates, high-tech systems, and specialized finishes. However, they are less expensive than community buildings and medical centers to build due to the latter's specific requirements for complex mechanical and electrical systems, specialized equipment, and stringent safety regulations.

Commercial Construction Cost Per Square Foot

Type Western U.S. Eastern U.S. Midwest Southern U.S.
Office Buildings $511 per square foot $518 per square foot $465 per square foot $461 per square foot
Schools $379 per square foot $349 per square foot $266 per square foot $238 per square foot
Community Buildings $657 per square foot $648 per square foot $593 per square foot $513 per square foot
Medical centers $742 per square foot $720 per square foot $581 per square foot $521 per square foot
Retail $407 per square foot $424 per square foot $388 per square foot $336 per square foot

Source: Big Rentz

Commercial Construction Cost Per Square Foot

Source: Big Rentz

How Much Does It Cost to Buy a Business Building

In the first quarter of 2023, U.S. offices cost a little over $38 per square foot. Check out the table below for a summary of average commercial rates in select U.S. cities. 

Location Cost to Buy
Metro New York $77 per sq. ft.
Los Angeles (Metropolitan Area) $44 per sq. ft.
Miami $46 per sq. ft.
Boston (Metro Offices) $38 per sq. ft.
Boston (Cambridge) $80 per sq. ft.
Philadelphia (City Center Offices) $32 per sq. ft.
Philadelphia (Suburban Space) $27 per sq. ft.
Atlanta $30 - $35 per sq. ft
Chicago $33 - $40 per sq. ft.
Dallas $25 - $30 per sq. ft.
Texas (Urban Centers) $25 - $30 per sq. ft.

Estimate Office Construction Costs in Seconds with Togal.AI

A wide range of factors can influence the cost to build office spaces, such as the type, size, and materials used. For faster and more accurate pricing, leverage our AI estimating software, Togal.AI. 

With Togal.AI, you can complete the takeoff of commercial office spaces in seconds with 99% accuracy. 

  • Save roughly 90 minutes per sheet.
  • Remove extra overhead and cut down on preconstruction costs. 
  • Eliminate error-prone manual calculations.

Experience how Togal.AI can streamline your workflow and increase the profitability of your office construction projects. Take a tour, try out Togal.AI or book a custom demo today.

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How Much Does Office Space Cost?

March 23, 2023
Togal.AI
10 minutes

How Much Does Office Space Cost? 

On average, office space costs $313 - $660 per square foot to build, with fewer floor levels resulting in lower costs. But commercial construction projects, including office spaces, come with varying price tags. This is especially true with the many factors that impact the final construction costs, including size,  labor, materials used, and location. 

Thus, general contractors that bid on these projects must provide a fast and accurate cost estimate to ensure that all factors are considered. This helps them avoid any possible cost overruns that could ruin its profitability while increasing their chances of winning the project.

Major general contractors achieve this by streamlining the takeoff and cost estimation process. They do this by leveraging AI estimating software that helps them complete weeks of work in just 10 seconds with 99% accuracy. 

Read further to learn more about the cost to build or rent an office space, the factors that impact it, and the AI takeoff software you can use to achieve a fast and human-error-free construction estimate.

Disclaimer: The pricing stated here is based on average data from third-party research. Prices may still vary due to differences in seasonality and supplier.

Office Space: How Much Square Footage Do You Need?

Size or square footage is one of the main factors that greatly impact both the construction costs and renting costs of an office. To determine how much office space is needed, first look at the number of employees that your company has. 

On average, 75 sq. ft. is needed per employee. Thus, if you have a total of 30 employees, then you’ll need a 2,250 sq. ft. office space. 

Renting Vs Building Office Space: Pros and Cons

The cost of office space is largely impacted by whether you rent or build the office from the ground up. Obviously, each approach offers varying costs, advantages, and disadvantages. Read the tables below to learn more.

Rent Vs Build: Estimated Costs

Approach Estimated Costs
Renting an Office Space $2 - $23 per sq. ft.
Building an Office Space $313 - $660 per sq. ft.

Source: Starter Story  andBigRentz

Rent: Pros and Cons

Pros Cons
A flexible approach for those uncertain about staying in one location long-term Random increase in monthly rent
Becomes operational instantly right after moving to the location The structure is less personalized to the needs of the business.
Lower upfront cost and ideal for those with minimal budget The renovation and installation of certain equipment might be prohibited.
Maintenance and repair costs are taken care of by the building owner Landlords may impose rules and regulations that limit the use of your space eg. limited after-hour access

Build: Pros and Cons

Pros Cons
Personalized design and construction plan to suit company needs High upfront costs in terms of buying land, material costs, and construction costs.
Stay in desired location long-term Owning the building means you have to pay for the maintenance and repair costs
Fixed costs compared to rental properties where there are random increases in monthly payments due to inflation Unexpected situations may result in the need to move location and sell the office space
Opportunity to rent a portion of your office and add a new income stream Longer time is needed to process permits and build the office space before becoming operational

Office Space Rent Costs

How Much Does Office Space Cost in the U.S.?

The study conducted by Commercial Edge shows a snapshot of the top 50 priciest U.S. office submarkets during the fourth quarter of 2021. These were ranked by looking at the average asking rents per square foot. The result reveals that California submarkets took 27 of the 50 top spots in office rents ranking. 

Read the table below to learn more about the priciest office space cost per square foot by city and state. 

Top 50 U.S. Office Submarkets With the Highest Prices in Q4 2021

Rank State / District Market Submarket Avg. Asking Rent Per Square Foot
1 California San Francisco Menlo Park $118.73
2 New York Manhattan Plaza District $107.41
3 California Bay Area Mountain View - West $95.64
4 California Bay Area Palo Alto $93.49
5 California San Francisco Redwood City $92.50
6 New York Manhattan Chelsea $84.67
7 New York Manhattan Times Square - Hell's Kitchen $81.24
8 California Bay Area Sunnyvale - West $78.01
9 California Los Angeles Beverly Hills $75.20
10 California San Francisco San Francisco - South Financial District $74.83
Rank State / District Market Submarket Avg. Asking Rent Per Square Foot
11 California Bay Area San Jose - CBD $70.13
12 Florida Miami Brickell $68.52
13 California Los Angeles Santa Monica $66.43
14 California Los Angeles West Hollywood $64.66
15 California San Francisco San Francisco - North Financial District $63.84
16 California Bay Area San Jose - West Valley $63.53
17 New York Manhattan Gramercy Park $62.99
18 California San Francisco Redwood Shores $62.71
19 California San Francisco San Mateo $62.62
20 California San Francisco Larkspur $60.04
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
21 New York Manhattan Murray Hill $59.16
22 California Bay Area Oakland - Downtown $59.07
23 Texas Austin Downtown $58.93
24 District of Columbia Washington, D.C. - Suburban Maryland East End $58.17
25 California Los Angeles Hollywood $56.70
26 New Jersey New Jersey Hudson Waterfront South $56.52
27 Massachusetts Boston Boston - Central Business District $56.41
28 District of Columbia Washington, D.C. - Suburban Maryland Washington DC CBD $56.31
29 New York Manhattan Financial District $56.26
30 California Los Angeles Wilshire Corridor $56.24
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
31 California Los Angeles West Los Angeles $55.88
32 California San Diego Carmel Valley $55.60
33 Massachusetts Boston Boston - Downtown $54.77
34 California Los Angeles Culver City $53.48
35 California San Francisco San Francisco - SOMA $52.70
36 California Bay Area Campbell $52.22
37 California San Francisco Burlingame $51.50
38 California San Diego Del Mar - Encinitas $50.51
39 Texas Austin South $49.66
40 Pennsylvania Philadelphia Main Line $49.51
Rank State / District Market Submarket Q4 2021 Avg. Asking Rent
41 Connecticut Bridgeport - New Haven Greenwich $48.94
42 Florida Fort Lauderdale Hollywood $48.63
43 Washington Seattle Bellevue $48.58
44 Connecticut Bridgeport - New Haven Stamford $48.22
45 California San Diego Downtown $47.67
46 Florida Fort Lauderdale Fort Lauderdale CBD $47.48
47 Florida Miami Coral Gables - Downtown $47.04
48 Virginia Washington, D.C. - Suburban Maryland Rosslyn $46.69
49 California San Diego University City $46.55
50 Texas Dallas - Fort Worth Uptown/Oak Lawn $46.47

Source: CommercialSearch

How Much Does It Cost to Rent Office Space By Company Size?

On average, renting an office space costs around $2 - $23 per sq. ft. If the average square footage required per employee is 75 sq. ft., then a company with 50 employees will need to rent a 3,750 sq. ft. office space which will cost around $7,500 - $8,6250. 

Read the table below for the estimated cost per company and office size. However, remember that this doesn’t take into consideration additional fees for added amenities, renovations, and installation of certain equipment.

Small Enterprise (10 - 49 employees)

Company Size Office Space Size Low-End High-End
10 750 sq. ft. 1500 17250
20 1500 sq. ft. 3000 34500
30 2250 sq. ft. 4500 51750
40 3000 sq. ft. 6000 69000

Source: Starter Story

Medium-Sized Enterprise (50 - 249 employees)

Company Size Office Space Size Low-End High-End
50 3750 sq. ft. $7,500 $86,250
75 5625 sq. ft. $11,250 $129,375
100 7500 sq. ft. $15,000 $172,500
125 9375 sq. ft. $18,750 $215,625
150 11250 sq. ft. $22,500 $258,750
175 13125 sq. ft. $26,250 $301,875
200 15000 sq. ft. $30,000 $345,000
225 16875 sq. ft. $33,750 $388,125

Source: Starter Story

Large Enterprise (250+ Employees)

Company Size Office Space Size Low-End High-End
250 18750 sq. ft. $37,500 $431,250
350 26250 sq. ft. $52,500 $603,750
450 33750 sq. ft. $67,500 $776,250
550 41250 sq. ft. $82,500 $948,750
650 48750 sq. ft. $97,500 $1,121,250
750 56250 sq. ft. $112,500 $1,293,750
850 63750 sq. ft. $127,500 $1,466,250
950 71250 sq. ft. $142,500 $1,638,750
1000 75000 sq. ft. $150,000 $1,725,000

Source: Starter Story

Office Space: Tenant Improvement Costs Per Square Foot

Tenant improvement costs refer to the expenses incurred by the landlord or property owner to customize a commercial space, such as an office, for the specific needs of the tenant. This can include the cost of construction, renovation, and installation of fixtures and finishes, as well as other expenses related to the customization of the space. 

Tenant improvement costs are typically negotiated between the tenant and landlord as part of the lease agreement and may be covered in whole or in part by the landlord. Here are some of the potential costs you should expect: 

Type Description Average Costs
First-generation build-out Initial construction or customization of a commercial space. $150 per square foot
Second-generation build-out Renovation or redesign of an existing commercial space. $112 per square foot

Source: Globest

Office Space Construction Costs

How Much Does Office Space Cost Per Type?

The cost to build an office per square foot is largely impacted by whether you’re building a single-story building, mid-rise, or high-rise. A single-story building usually costs $313 per sq. ft. A mid-rise office space costs $562 per sq. ft., and a high-rise office space costs $660 per sq. ft.

The more floors in the building, the greater the need for structural support to withstand strong winds and earthquakes. Thus, requiring structural specialists and other construction experts, along with sturdy and high-quality materials that will surely bump up the cost. 

Cost to Build an Office Building Per Type

Explore the varying office building construction cost per square foot, depending on the type, namely single story, mid rise, and high rise. 

Cost to Build an Office Building Per Type


Type Average Cost Low - End Cost High-End Cost
Single-Story $313 per sq. ft. $289 per sq. ft. $437 per sq. ft.
Mid-Rise $562 per sq. ft. $330 per sq. ft. $870 per sq. ft.
High-Rise $660 per sq. ft. $430 per sq. ft. $1001 per sq. ft.

Source: Levelset, Proest

Office space construction cost per square foot

Source: Levelset, Proest

Office Build Out Costs 

A high-end office build-out can cost around $243 per square foot. It's normal to expect to pay more per square foot for an office buildout, even if the company chooses a traditional office floor plan with dedicated offices and desks.

The average cost per square foot of an office build-out with bench-style seating and smaller collaboration and meeting rooms is between $194 and $221. But it can also  reach up to $257 per square foot if you’re opting for higher-quality custom flex spaces.

Office build-outs that incorporate workstations in an open setting with private offices and collaborative workspaces can cost around $205 - $275 per square foot. 

Lastly, build-outs with a higher percentage of large conference rooms and private offices can cost between $212 - $290. 

Features Low-End High-End
- Bench style seating
- Smaller Collaboration rooms
$194 per square foot $221 per square foot
- Workstation in an open setting
- Private offices
- Collaborative workspaces
$205 per square foot $275 per square foot
- Higher percentage of private offices
- Bigger conference rooms
$212 per square foot $290 per square foot

Source: Crexi 

Cost to Build an Office in the U.S.

Location impacts land costs, material prices, labor costs, and the permits needed. For example, a location that’s prone to earthquakes will require stricter building requirements which will increase material and labor costs. 

Review the table below to learn more about the average construction costs of offices per city as of 2021. 

Office Building Construction Cost Per Square Foot and Per City

Shown below are office building construction costs per square foot in select cities in the U.S. For prime office buildings, New York has the highest office construction costs per square foot while Portland has the lowest, with $272.50 per sq. ft. For secondary offices, San Francisco has the highest construction costs while Las Vegas has some of the lowest.

Location Prime Secondary
Portland $272.50 per sq. ft. $260 per sq. ft.
Las Vegas $275 per sq. ft. $162.50 per sq. ft.
Phoenix $285 per sq. ft. $167.50 per sq. ft.
Los Angeles $300 per sq. ft. $222.50 per sq. ft.
Denver $345 per sq. ft. $205 per sq. ft.
Chicago $365 per sq. ft. $227.50 per sq. ft.
Seattle $397.50 per sq. ft. $217.50 per sq. ft.
Washington $412.50 per sq. ft. $275 per sq. ft.
Honolulu $427.50 per sq. ft. $252.50 per sq. ft.
Boston $450 per sq. ft. $275 per sq. ft.
San Francisco $527.50 per sq. ft. $405 per sq. ft.
New York $595 per sq. ft. $365 per sq. ft.

Source: Statista 

Office Space: Material Costs

Here’s a commercial construction cost breakdown, focusing on the material expenses needed when you build an office space.

Description Estimated Costs
Insulation Insulation ensures comfort in the office regardless of the season and can be in the form of foam, cellulose, or fiberglass. $0.12 - $6.87 per sq. ft.
Sound-proofing Sound-proofing encourages focus and privacy among employees and can be achieved through acoustic panels, foam insulation on the walls, and mass-loaded vinyl on the floors. $1,000 - $2,500 (includes labor, materials, and tools)
HVAC An effective HVAC system ensures that all employees are comfortable through adequate heating, ventilation, and air conditioning. $5,000 - 12,500 for a new HVAC system
Wiring This includes cable and electrical outlets that enable office equipment such as computers and telephones. $120 - $200 for electrical outlets.
Office Supplies This includes regularly used office items such as pens, papers, markers, and more. $50 - $100 per month per employee
Internet Internet is required to connect via email, phone, and meetings. Internet costs will vary depending on your chosen provider. $36 - $58 per month
Equipment This includes computers, printers, and copiers. $65 - $700 for computers
Furniture This includes office desks, tables, chairs, and storage $285 – $1,200 for office desks
$69 - $610 for office chairs

Sources: Various Sources

Office Space: Labor Costs

Here are some of the labor costs that you need to consider when building office space. 

Labor rate for construction

Construction Professional Rate
Architect $125 - $250 per hour
Carpenter $35 - $100 per hour
Electrician $50 - $100 per hour
General Contractor 10% – 20% of the total project
HVAC Technician $50 – $150 per hour
Interior Designer $50 – $200 per hour
Landscape Designer $50 – $150 per hour
Painter $20 – $50 per hour
Plumber $45 – $200 per hour

Source: HomeAdvisor and HomeGuide.

Commercial Building Costs: Office Space vs. Other Building Types

How much does it cost to build a commercial building? Well, it varies depending on the building type. This is because, depending on the building type, the overall purpose of the space changes. For example, restaurants and hospitals need smoother surfaces to encourage a sterile environment, while medical centers need a space large enough for large medical equipment. 

Office buildings typically have more expensive commercial construction costs compared to schools and retail due to their specific requirements for larger floorplates, high-tech systems, and specialized finishes. However, they are less expensive than community buildings and medical centers to build due to the latter's specific requirements for complex mechanical and electrical systems, specialized equipment, and stringent safety regulations.

Commercial Construction Cost Per Square Foot

Type Western U.S. Eastern U.S. Midwest Southern U.S.
Office Buildings $511 per square foot $518 per square foot $465 per square foot $461 per square foot
Schools $379 per square foot $349 per square foot $266 per square foot $238 per square foot
Community Buildings $657 per square foot $648 per square foot $593 per square foot $513 per square foot
Medical centers $742 per square foot $720 per square foot $581 per square foot $521 per square foot
Retail $407 per square foot $424 per square foot $388 per square foot $336 per square foot

Source: Big Rentz

Commercial Construction Cost Per Square Foot

Source: Big Rentz

How Much Does It Cost to Buy a Business Building

In the first quarter of 2023, U.S. offices cost a little over $38 per square foot. Check out the table below for a summary of average commercial rates in select U.S. cities. 

Location Cost to Buy
Metro New York $77 per sq. ft.
Los Angeles (Metropolitan Area) $44 per sq. ft.
Miami $46 per sq. ft.
Boston (Metro Offices) $38 per sq. ft.
Boston (Cambridge) $80 per sq. ft.
Philadelphia (City Center Offices) $32 per sq. ft.
Philadelphia (Suburban Space) $27 per sq. ft.
Atlanta $30 - $35 per sq. ft
Chicago $33 - $40 per sq. ft.
Dallas $25 - $30 per sq. ft.
Texas (Urban Centers) $25 - $30 per sq. ft.

Estimate Office Construction Costs in Seconds with Togal.AI

A wide range of factors can influence the cost to build office spaces, such as the type, size, and materials used. For faster and more accurate pricing, leverage our AI estimating software, Togal.AI. 

With Togal.AI, you can complete the takeoff of commercial office spaces in seconds with 99% accuracy. 

  • Save roughly 90 minutes per sheet.
  • Remove extra overhead and cut down on preconstruction costs. 
  • Eliminate error-prone manual calculations.

Experience how Togal.AI can streamline your workflow and increase the profitability of your office construction projects. Take a tour, try out Togal.AI or book a custom demo today.

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