commercial cost guide
How much does a commercial build-out cost?
Commercial tenant build-outs typically cost $80–$250 per square foot. Restaurant build-outs run $250–$500/sqft, while warehouse or office shell-only fit-outs can be as low as $40–$80/sqft.
Key Takeaways
- •Office build-out: $80–$200/sqft
- •Restaurant build-out: $250–$500/sqft
- •Retail build-out: $90–$220/sqft
- •Permits and inspections required
Cost Breakdown
| Line item | Typical share / cost |
|---|---|
| Demolition (if existing) | $5–$15/sqft |
| Framing + drywall | $15–$35/sqft |
| MEP (electrical, plumbing, HVAC) | $30–$80/sqft |
| Flooring | $8–$25/sqft |
| Ceilings + lighting | $10–$25/sqft |
| Permits + design | $8–$20/sqft |
Factors That Affect Your Cost
Use type
Restaurants and medical offices need extensive MEP; raw office space is the cheapest.
Code compliance
ADA/AODA accessibility, fire suppression, and ventilation drive significant cost.
Landlord allowance
Many leases include a tenant improvement (TI) allowance of $25–$75/sqft.
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Related Questions
Who pays for a commercial build-out?
Typically a mix: landlord covers a TI allowance, tenant pays the balance. Negotiate this in the lease.
How long does a commercial build-out take?
Office build-outs run 8–14 weeks. Restaurants and medical can take 16–28 weeks due to permit complexity.