Global office fit-out costs jumped as much as 6% over the past year

An analysis of 68 global cities by JLL found that office fit-out costs have surged by up to 6% over the past year.

North America is the most expensive region at $3,200 per square meter or $295 per square foot. Geopolitical tensions, ongoing supply chain disruptions, and U.S. trade tariffs (cited as a cost driver in 62% of markets surveyed), are creating significant uncertainty.

The report also cites mechanical and electrical (M&E) services as a key driver, accounting for up to 37% of fit-out budgets. These categories are particularly exposed to rising copper prices, skilled labor shortages affecting 55% of markets, and the intricate technology now required for modern offices.

The report also highlights the growing importance of energy-efficient solutions and advanced technology integration for high-performance workplaces. With 88% of CRE leaders identifying energy savings as a top C-suite priority, there is a shift toward viewing smart M&E solutions as long-term operational investments rather than simple cost lines.

Additionally, the growing complexity of technology, from premium AV systems for hybrid work to the underlying infrastructure needed for AI, is becoming a baseline requirement that must be budgeted for from day one.