Office Remodeling Costs: Budgeting for a Commercial Office Project (2022)

Ready to build anew (or upgrade) your commercial business or office space? These are the costs to expect for an office remodel

Office Remodeling Costs: Budgeting for a Commercial Office Project (1)

(Above) A new commercial office remodel with Sweeten for an NYC-based tech brand

Perhaps you have outgrown your home office or coworking space or maybe your business is in need of a fresh location or configuration. An office renovation will give you a chance to dream long-term about where your business is heading and interpret that direction into blueprints for a space that will facilitate growth. In this guide, we’ll consider the many pieces of your office renovation cost.

An office renovation can be as simple as an improvement project that is negotiated between the landlord and the tenant before signing a lease. Often these are very basic renovations such as fresh paint and some new walls that the tenant ultimately pays for in the cost of the lease.

If you are after something more custom, there are, of course, many variables that will determine the cost per square foot. Is the location a new or old building? Was it previously an office? What part of the country will your office be in? What are your business needs? And what quality of work will match those needs?

(Video) How to Budget for Your Commercial Construction Project

A new building with a basic build-out of carpet, paint, and lighting, including equipment such as a photocopier and coffee machine costs about $40 a square foot, according to 42Floors, a national search engine listingreal estate for office space. On the higher end of the scale, a build-out with finishes such as wood veneer doors and a stone reception desk could hit $100 to $150 a square foot. The office renovation cost could also increase if you are renovating in an older building where quirky spaces and issues, such as slanted floors, must be taken into account. Whatever your tastes and needs, here are budget line items to consider.

Costs to hire an architect for an office renovation

Most people will choose to hire an architect or designer. Expect that to take 20 percent of your renovation budget, according to Sweeten architect Carla. That could mean $40,000 of a $200,000 budget. Bringing in a design professional early on may save heartaches in the long run. Along with the overall look and feel of the project, architects can also take care of code issues, assess if the workspace size will be comfortable for the number of employees, ensure handicap accessibility, design custom work areas, and more. “You can express creativity and individuality,” said Carla.

Office lighting and electrical costs

While planning an office remodel, first consider who will be coming to your office, said Anthony, a Sweeten general contractor. If clients are making regular visits, “you don’t want it to look like you’re working out of a bomb shelter,” he said. Decent lighting is one of those elements you can use to impress your clients, an impression that will hopefully lead to more business. Basic lighting can cost about $250 a point (a light with a switch is considered two points), according to Anthony. For each 110 volt outlet, put $150 in your budget, and don’t forget things like lighting for emergency exit signs, which are about $300 each, according to the website How to Move Your Office.

Costs for millwork and finishes in an office

This is another area where you can keep costs down while still wowing potential clients with your new office space. “I’ve done work in lawyer’s offices where inside it is a vanilla box with cubicles that the clients never see,” said Anthony. “Then you have a lobby and conference room that is decked out with custom woodwork and imported marble.” One sample office budget at Buildings.com put the cost of millwork and finishes at about $25 a square foot. The total office renovation cost for that build-out came to $90 a square foot.

Office Remodeling Costs: Budgeting for a Commercial Office Project (2)

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Costs to build walls

Similar to lighting and millwork, walls can differ greatly in cost. A basic partition wall that is ten linear square feet could cost around $60. Glass walls are not often priced per square foot and are insteadsold as a package. However, using executive design elements suchas glass walls could push the entire cost of your office renovation towards the $150 a square foot range.

Office flooring costs

Commercial-grade carpet or a vinyl tile can cost as little as $4 a square foot to supply and install. Wood plank floors can cost around $7 a square foot for a 5,000-square-foot office. If there will be an industrial theme in your new office, then concrete flooring might be an economical option starting at $2 a square foot, according to the Concrete Network.

Office bathroom costs

Many office buildings will have a communal bathroom area on each floor for tenants. If there is no bathroom, you must install at least one. US code requires one bathroom per one to 15 staff members. That climbs to six bathrooms for 111 to 150 staff. A single restroom could cost a little under $15,000, according to How to Move Your Office. If your staff likes to shower at work after jogging or riding into the office, a shower (make sure it is handicap friendly as per the Americans with Disabilities Act), will cost just shy of $6,000.

Office Remodeling Costs: Budgeting for a Commercial Office Project (3)(Above) The office kitchen and go-to snacking area from Domino’s NYC office renovation with Sweeten

Office kitchen costs

An office kitchen can help team membersfeel appreciated. In the office renovation cost outline at the end of this article, Sweeten contractor Anthony installed an office bathroom and kitchenette. The total budget for those two items was around $16,000. The kitchenette, which consisted of a sink and fridge, took about 25 percent or $4,000 of that budget. Because the kitchenette and the bathroom were near each other, the project made double use of the plumbing to reduce overall costs. “It really depends on how much plumbing and millwork you need,” said Anthony. “You could have a simple cabinet or a whole countertop with a microwave, fridge, and sink.”

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Fire protection

Depending on the building you are leasing, this could (hopefully) already be in place. If there is a sprinkler system, it is well worth spending a few hundred dollars to have an engineer inspect it to ensure it works and that it is up to current code. Installing a system from scratch in a small to a medium-sized office could set you back between $5,000 to $10,000, according to Anthony. He estimates that a sprinkler system will cost about $200 per sprinkler head, plus an additional $2,000 to have a plan drawn up as well as permits and inspections.

HVAC for offices

Keeping an office well ventilated and at a comfortable temperature can have a big impact on employee productivity. So, installing an HVAC—heating ventilation and air conditioning system—might be worth it if there isn’t already one in your new location. An HVAC system could cost between $15 to almost $30 a square foot or 15 to 20 percent of your entire office renovation cost, according to the Builder’s Association.

Labor costs for an office remodel

For a typical office renovation, labor should take about ten percent of your entire budget. However, consider the geographic differences in labor costs. For example, the cost of labor in New York City is 70 percent higher than the national average, according to Fixr. Philadelphia is 40 percent and Dallas ten percent above the national average. Charleston, South Carolina, and Scottsdale, Arizona, are both one percent below the national average.

Certainfactors in individual cities canadd another variable. For example, in New York City, there are union and non-union buildings. For union buildings, tenants are required to use union labor, which can almost double the office renovation cost of a project, said Joseph, a Sweeten general contractor. The basic build-out of an office in a non-labor building can be as little as $40 a square foot or as much as $100 a square foot in a labor building, according to 42Floors.

Here, a real budget for a 5,500 square-foot office renovation inNYC from Sweeten contractor Paul:

(Video) Excel Budget Template | Automate your budget in 15 minutes

Finding the right general contractor for a commercial office renovation

Starting an office space remodel can mean an exciting step forward for a business whether you’re a start-up or an established company in need of a new environment for your team. The process of dreaming up the future of your company and your new office space can be exhilarating, especially if you have the right team of experts guiding you. Are you looking for experienced commercial-space contractors near you? Sweeten matches business professionals with vetted general contractors, offering guidance and financial protection—at no cost to the business owner. Start by posting your project on Sweeten today.

Whether you’re a beginner restaurateur or simply daydreaming about opening a cafe, check out our Commercial Guide: A Cost Breakdown to Open a Restaurant.

Sweeten handpicks the best general contractors to match each project’s location, budget, and scope, helping until project completion. Follow the blog for renovation ideas and inspiration and when you’re ready to renovate, start your renovation on Sweeten.

(Video) A Modern Office Design for an Austin Tech Company’s New HQ | Full Floor Renovation for CCC

FAQs

How much does it cost to redo an office? ›

The average price is around $200 per square foot. Let's say your office space is 15' long by 12' wide, which comes to 180 square feet. Then, multiply 180 by $200 to equal $36,000, so the $36,000 should approximate your budget for the office renovations.

How much does it cost to add an office? ›

According to data from Fixr, the average cost of adding a home office is $3,500, assuming the project involves converting an existing space. Costs can be much higher for building an extension or a new work area. A 2020 survey from HomeLight predicted that adding a home office can offer an 87% return on investment.

How much does it cost to renovate an office in Malaysia? ›

Office Renovation Cost

1000 sqft office: RM60,000 – RM120,000. 2000 sqft office: RM110,000 – RM200,000. 3000 sqft office: RM180,000 – RM400,000.

How much does it cost to renovate a house in the Philippines? ›

An average renovation project will cost you about P15,000 to P20,000 per square meter.
...
Sample breakdown.
Cost itemsSample Budget
Electrical14,40072,000
Total project cost144,000720,000
Contractor (and/or Labor)57,600288,000
Estimated cost201,6001,008,000
3 more rows
12 Apr 2021

How much does it cost to build an office room? ›

At 300 square feet or less, a small home office requires less flooring, lighting, and furniture than a medium office, typically between 300 and 600 square feet.
...
Cost to Build Home Office by Size.
Office SizeCosts (Labor and Materials)
11 x 11 feet$18,500
12 x 12 feet$20,000
15 x 15 feet$22,000
20 x 20 feet$25,000
4 more rows
11 Mar 2021

Is it cheaper to add on or build up? ›

Building up is always the least expensive option for increasing your home's square-footage because it requires less material and labor. For example, if you have 1,000 sq. feet on the main level and want to add 1,000 sq. feet as a second floor, all you have to do is add more wood and framing labor.

What is the cheapest way to build an addition? ›

Finishing a basement, attic, or garage is one of the more inexpensive ways to add a room to your home as you won't need to add a foundation, roof, or structural elements.

How much does a 12x12 room addition cost? ›

The average room or house addition costs $86 to $208 per square foot, with most homeowners spending between $22,500 and $74,000. Adding a 20x20 family room costs $48,000 on average, while adding a 12x12 bedroom costs about $17,300.

What is renovation in accounting? ›

upgrading of a component of the asset that has been treated separately for depreciation purposes such as hotel furniture and fixtures as well as fittings.

Is renovation tax deductible in Malaysia? ›

KUALA LUMPUR: The government extending tax deduction of up to RM300,000 for business renovation and refurbishment until Dec 31, 2022 is something businesses can look forward to for the remainder of this year, said education platform director Genesis Origo Low Chin Ann.

How do you budget for home renovations? ›

How much to budget for a renovation. Homeowners should be budgeting at least 20% over the estimated cost of the renovation. Sit down with your contractor, be realistic about your budget, and set a contingency line item for 20% of the projected costs.

How do you calculate renovation costs? ›

The more square footage involved in your home renovation project, the more expensive it will be. Renovating an entire home will cost, on average, $10 – $60 per square foot5. As a result, the more square footage involved in your renovation project, the more you're likely to pay.

Is 100k a good renovation budget? ›

According to HomeAdvisor, the cost of a remodel was estimated at approximately $46,755. If this figure has to be included homeowners who complete only one or two projects at one time. Most homeowners should spend somewhere between $100,000 and $200k for a house renovation.

How much does it cost to build a commercial building in the Philippines? ›

As of the first quarter of 2021, commercial constructions in the Philippines cost an average of around 10 thousand Philippine pesos per square meter. The average per square meter cost of commercial constructions in the country was lowest in the fourth quarter of 2020.

Is office renovation capital expenditure? ›

(Basically Renovation belongs to capital expenditure which are not allowed to tax reduction): Any taxpayer incurs R&R expenses on business premises and the premise is used for business purpose, he is eligible for renovation tax deduction.

How long does a business renovation take? ›

The time it takes to renovate a commercial space depends on the size and scope of the project. A project as simple as updating paint and flooring could only take a couple of weeks, while larger-scale renovations — like creating an entirely new floor plan — can take eight months or more.

What should I consider in new office space? ›

8 Things to Consider When Looking for Commercial Office Space
  • Security and Safety. ...
  • Building Accessibility. ...
  • Office Accessibility. ...
  • Competitor Presence. ...
  • The Work Environment. ...
  • Proximity to Amenities. ...
  • Technology Compatibility. ...
  • Eco-friendly Features.
21 Mar 2018

What is an office build out? ›

In a commercial office buildout, tenants will work with office designers and contractors to ensure an optimal working environment for employees, developing an intentional space that's both appealing and functional.

How much does it cost to make a shed into an office? ›

A general answer to the question of “How much does it cost to convert a storage shed into an office?” is between $2,000 – $35,000. Considering the alternative to converting a shed into an office, building onto your home, sheds turned offices offer you a good deal!

How much does it cost to add 1000 square feet to a house? ›

Home addition costs by square footage
Square feet addedTypical cost
500$40,000-$100,000
600$48,000-$120,000
800$64,000-$160,000
1,000$80,000-$200,000
6 more rows
9 Jan 2020

What is a bump out addition? ›

A bump-out is a minor addition to a house that increases its total square footage but doesn't reach the scale of a full addition with multiple rooms. A bump-out can be as small as two or three feet that push out the side of the house, or as large as a single room.

Is renovating cheaper than building? ›

A: It's almost always less expensive to renovate an existing house than to buy used or build a new one.

What is cheaper brick or wood? ›

While wood is more affordable than brick, according to a 2017 study conducted by RSMeans and the Brick Industry Association, the national average total construction cost of a clay brick-sided home is only two percent more than wood and fiber cement. So it's cheaper, but not by much.

Can you add an addition without foundation? ›

Can You Build a Room Addition With No Foundation? Unless you are willing to add a second story to your building or bumping out, every structural addition requires a solid foundation. Without it, your building won't be able to stand for long.

How can I raise my home value for $50000? ›

8 ways to increase the value of your home
  1. Clean and declutter. ...
  2. Add usable square footage. ...
  3. Make your home more energy-efficient. ...
  4. Spruce it up with fresh paint. ...
  5. Work on your curb appeal. ...
  6. Upgrade your exterior doors. ...
  7. Give your kitchen an updated look. ...
  8. Stage your home.
5 Jul 2022

How much does it cost to enclose a room? ›

Most homeowners spend from $42,000 to $88,000 to add a room of this size. The national average 20×20 room addition cost is $65,000. The rate breaks down to about $80 to $200 per square foot for an average cost of $140 per square foot.

How big is a 20x20 room? ›

How many square feet is a 20x20 room? The square footage of a room 20 feet wide and 20 feet long is 400 square feet. The square footage is found by multiplying the width (20 ft) by the length (20 ft).

How much does it cost to add $500 square feet to a house? ›

Cost to Add 500 Square Feet to a House

addition is around $75,000 to $100,000. An addition of this size offers many possibilities. You can add a single large space for expanding open floor plans.

How much does it cost to add a master bedroom and bathroom? ›

How Much Does It Cost to Add a Primary Bedroom and Bath? For a master suite addition, you will pay $25,000 to $100,000 or $62,500 on average. Adding a bedroom and bathroom to your home typically falls in the $35,000 to $84,000 range, depending on the room size, features and material quality.

What type of expense is renovation? ›

A renovation is not an expense, any way you look at it. It's a property improvement that gest capitalized and depreciated over time. For a rental property, deprecation is over 27.5 years. You'll add the property improvement in the Assets/deprecation section of the program.

What repairs and maintenance should be capitalized? ›

When can equipment repairs be capitalized? Equipment repairs and/or purchase of parts over $5,000 (including upgrades and improvement) which increase the usefulness and efficiency of the equipment can be capitalized.

What costs are capitalized with a building? ›

Buildings acquired by construction should be capitalized at their original cost. The following major expenditures are capitalized as part of the cost of buildings: Cost of constructing new buildings, including material, labor, and overhead. Cost of excavating land in preparation for construction.

Are office renovations tax deductible? ›

Business owners who work from a dedicated home office – meaning it's not used for any other purpose besides business – can deduct repairs made to their office in the year they are made. Bigger renovations, which affect the long-term value of the home, can be depreciated over time.

Are remodeling costs tax deductible? ›

Home improvements on a personal residence are generally not tax deductible for federal income taxes. However, installing energy efficient equipment may qualify you for a tax credit, and renovations for medical purposes may qualify as tax deductible.

Can I deduct renovation expenses? ›

Can I deduct the money I spent remodeling my home using home improvement tax deductions? No, you cannot deduct the expense of home improvement using a home renovation tax credit.

How much should you budget for renovations? ›

Typically, you can expect to spend at least $10 to $60 per square foot on any renovation. When you're deciding on your home renovation budget, it can be easier, and more affordable, to prioritize projects by room and build a budget around the cost of each individual project.

How much should you spend on renovations? ›

As a general rule of thumb, the amount you spend on your renovations should not be more than 10% of the current market value of your home.

What should I spend and save when renovating? ›

Spend on fixtures, save on furniture.

Everything that doesn't move is trickier so you want to get it right. I always encourage clients to take their time buying items that are large and important for a good overall design, like sofas, tables, TV units and furniture, especially if budgets get tight.

How do you calculate labor cost for remodeling? ›

Determining the construction labor cost

They are working 8-hour shifts, which will translate into a 40 hour work week. Crew's hourly rate X 3 (amount of workers) X 6 (number of weeks) X 40 (hours per week) = cost of the project.

How do you quote a renovation project? ›

  1. Name & Contact Information.
  2. Registration Numbers.
  3. Detailed Description of the Project.
  4. Timeline of Project.
  5. Renovation Guide.
  6. Total Cost & Terms of Payment.
  7. Comparing Quotes – Not As Easy As It Seems.
18 Mar 2019

What should I renovate first? ›

This is why experts agree that choosing to remodel your kitchen or bathroom first is traditionally the smartest move. And while kitchens typically cost more to remodel than bathrooms, they tend to yield a better return on investment, so they end up paying for themselves over the long run.

Is 20000 enough to renovate a house? ›

Replacing or refinishing the flooring, painting or wallpapering the walls and ceiling, and building or redesigning the closet space are aspects of the main bedroom that have a good recoupment on investment and impact on your daily life, says Fisher. Those projects can easily fit in a $20,000 budget.

How much does a kitchen remodel increase home value 2022? ›

The kitchen is one of the most expensive rooms to remodel fully, but a minor renovation can look almost as good, and it comes with a 72.2 percent ROI.

Do renovations add value? ›

Key Takeaways. Remodeling can boost the return on investment (ROI) of a house. Wood decks, window replacement, and kitchen and bathroom upgrades tend to generate the highest ROIs.

How do you calculate construction costs? ›

Cost of construction = area of plot x construction rate per sq ft. To arrive at the construction rate per square foot, you must include the following: Construction material: Cement, steel, sand, gravel, finishing, color, tiles, bricks, fittings, windows, doors, plumbing, sanitary, and electrical. Labour cost.

How much is the construction cost per square meter in the Philippines 2022? ›

Housing Index in Philippines is expected to be 12500.00 PHP/SQ. METRE by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Philippines Average Construction Cost is projected to trend around 13000.00 PHP/SQ.

How much is construction cost per square meter in the Philippines? ›

Residential and Non-Residential Construction Cost per Square Meter
TYPE OF CONSTRUCTION4th QUARTER OF 20204th QUARTER OF 2019
RESIDENTIAL10,590.0011,872.00
NON-RESIDENTIAL9,772.0011,684.00
10 Apr 2021

How do you calculate renovation costs? ›

The more square footage involved in your home renovation project, the more expensive it will be. Renovating an entire home will cost, on average, $10 – $60 per square foot5. As a result, the more square footage involved in your renovation project, the more you're likely to pay.

How do you budget for a home renovation? ›

You don't want to spend more than 10 to 15 percent of your home's value on a single room. If you spend more, the value of the renovation will not proportionally add to the value of your home. For example, if your home is worth $100,000, the maximum you should spend on a kitchen or bathroom renovation is $15,000.

How do you calculate labor cost for remodeling? ›

Determining the construction labor cost

They are working 8-hour shifts, which will translate into a 40 hour work week. Crew's hourly rate X 3 (amount of workers) X 6 (number of weeks) X 40 (hours per week) = cost of the project.

How do you quote a renovation project? ›

  1. Name & Contact Information.
  2. Registration Numbers.
  3. Detailed Description of the Project.
  4. Timeline of Project.
  5. Renovation Guide.
  6. Total Cost & Terms of Payment.
  7. Comparing Quotes – Not As Easy As It Seems.
18 Mar 2019

How much should you spend on renovations? ›

As a general rule of thumb, the amount you spend on your renovations should not be more than 10% of the current market value of your home.

What should I spend and save when renovating? ›

Spend on fixtures, save on furniture.

Everything that doesn't move is trickier so you want to get it right. I always encourage clients to take their time buying items that are large and important for a good overall design, like sofas, tables, TV units and furniture, especially if budgets get tight.

Is 20000 enough to renovate a house? ›

Replacing or refinishing the flooring, painting or wallpapering the walls and ceiling, and building or redesigning the closet space are aspects of the main bedroom that have a good recoupment on investment and impact on your daily life, says Fisher. Those projects can easily fit in a $20,000 budget.

Is 100k enough to renovate a house? ›

According to HomeAdvisor, the cost of a remodel was estimated at approximately $46,755. If this figure has to be included homeowners who complete only one or two projects at one time. Most homeowners should spend somewhere between $100,000 and $200k for a house renovation.

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