The global average cost of fitting out an office has increased by 2-6% across regions over the past year, driven by a complex mix of geopolitical instability, rising energy prices, skilled labor shortages and increasingly complex technology requirements, according to a new report from JLL.
The 2026 Global Office Fit-Out Costs Guide finds that these pressures have pushed the global benchmark for a medium-quality corporate office fit-out to $2,150 per square meter/$205 per square foot.
“While we saw some stabilization in material prices in 2025, the story for 2026 is one of compounding complexity,” says Ruth Hynes, global project and development services research lead, JLL. “It’s no longer a single issue, but a confluence of persistent labor shortages, volatile energy prices and new geopolitical uncertainty that is now baked into project pricing. This report provides the critical data needed to navigate this new reality and make defensible investment decisions in an environment where cost predictability is a significant challenge.”
Key takeaways:
· The analysis of 68 cities worldwide reveals that while material prices have partially stabilized, new challenges are intensifying cost pressures.
· Geopolitical tensions, ongoing supply chain disruptions and U.S. trade tariffs – which were cited as a cost driver in 62% of markets surveyed – are creating significant uncertainty. Mechanical and electrical (M&E) services and builders’ works are the largest components of a typical budget, accounting for up to 37% and 29% of total project costs, respectively. 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.
· With 88% of commercial real estate leaders identifying energy savings as a top C-suite priority, the guide emphasizes a shift toward viewing smart M&E solutions as long-term operational investments rather than simple cost lines. Furthermore, 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 1.
· Regionally, North America remains the most expensive market for fit-outs, with an average cost of $3,200 per square meter/$295 per square foot, significantly higher than Asia Pacific ($1,550/sqm), Latin America ($1,800/sqm), and EMEA ($2,300/sqm). The report identifies New York, San Francisco, and Boston, among the Top 5 most expensive cities globally, with costs driven by broad economic conditions and intense competition for skilled labor. The findings also reveal that choosing an office layout typology is a major cost determinant, with the potential to vary project costs by 10-13% before accounting for quality of finishes.
