A guide to cost-efficient office fit-outs

As a professional responsible for your company's real estate and workplace strategy, you're at the forefront of managing one of its most significant investments: its physical workspace. While often viewed as a necessary expense, a smart fit-out of your current office can transform your space into a powerful tool for business growth and employee satisfaction without breaking your budget.

You're likely navigating the changing dynamics of work daily. Employees are seeking environments that rival home comforts while fostering collaboration and productivity. Simultaneously, you're tasked with managing costs effectively and demonstrating the value of workplace investments.

Office development and new construction are at historic lows, which is leading more companies to use office fit-outs to update the workplace and meet changing employee expectations. Of course, workplace renovations come with a price tag, and costs are rising for everything from construction materials and mechanical and electrical services to IT.

"Supporting both hybrid and face-to-face work requires adaptability, collaborative and private space, multi-functional rooms, and integrated technology,” says Andrew Hudson, Senior Director for Project Execution with JLL PDS. “All of which impact capital expenditure."

With 86% of CRE leaders focused on cost reduction, the need for smart, cost-effective decisions across your offices and other real estate has never been more important.

There’s much work to be done: From distracting office noise to a lack of private space, lots of offices still fail to measure up to the tasks needed for today’s work. And companies that don’t get their fit-outs right risk alienating the very employees they want to attract.

Smart, decisive planning is essential to manage office fit-out costs. The first step is to conduct a thorough analysis of how your existing office is being used and identify areas for improvement.

Then, collaborate with leaders across your organization—from finance to HR to operations—to align on needs and, most importantly, budget. JLL’s research indicates average fit-out costs have increased across the US and globally in the last 12 months, with three-quarters of markets reporting increases in raw material prices and half of markets reporting are increases in construction costs. JLL’s latest Fit-Out Cost Guide shows the average fit-out cost globally for an office is $1,950/sqm and ranges from $770/sqm to $3,790/sqm across the markets surveyed.

However, it's crucial to look beyond these expenses and focus on the potential returns they can generate for your business. As you reevaluate your company’s workplace strategy, you can reimagine the office as a tool to tackle these business challenges:

A well-designed office space can be a powerful magnet for top talent and a key factor in employee retention. By creating an environment that reflects modern work preferences, fosters well-being, and supports diverse work styles, companies can showcase their commitment to employee satisfaction and career growth, making them stand out in a competitive job market.

Thoughtfully designed workspaces can significantly enhance employee productivity by providing the right mix of focus areas, collaboration zones, and creative spaces. By optimizing the office layout and incorporating elements that support different work modes, companies can create an environment that nurtures innovation, improves concentration, and facilitates seamless teamwork, ultimately driving better business outcomes.

Investing in a flexible office design allows your workspace to evolve alongside your business, accommodating changing team sizes, work patterns, and technological advancements. This adaptability not only future proofs your office but also provides significant cost savings in the long run by reducing the need for frequent major renovations or relocations.

Once you’ve decided to transform your office, an integrated approach can help deliver the best ROI by providing access to experts across multiple steps in the process:

Leasing strategies

JLL's leasing experts help corporate tenants make necessary amendments to leases and secure favorable renewal terms that maximize leverage based on the value created by renovations. Working with a partner that has deep local knowledge ensures that current market conditions are factored into any lease renewal or renegotiation.

Design services

These specialists craft environments that meet current needs and anticipate future demands based on evolving workplace trends. JLL has deep experience tailoring solutions for both office and retail settings, creating spaces that align with business objectives and work for employees and customers alike.

Construction management

A skilled construction management team can assist with the entire process, from initial design to final fit-out, with a focus on delivering projects on time and on budget. JLL’s construction managers coordinate every phase to minimize disruptions and avoid costly overruns. For more complex projects, JLL offers guidance on master planning and feasibility studies.

Workplace strategy

As the nature of work evolves, companies face the challenge of aligning their physical spaces with changing business needs. JLL's workplace strategy team helps organizations navigate this shift by harmonizing physical space, people, and technology. Their approach focuses on optimizing space utilization to improve efficiency and reduce costs while creating inspiring work environments

Cost-effective office fit-outs are about more than just reducing expenses. They're about creating spaces that work harder for your business. By partnering with experienced real estate professionals, organizations can transform their offices into powerful assets that drive business growth.

Remaining flexible, listening to employees, and making small tweaks over time can ensure you get maximum value from your fit-out dollars. That’s vitally important because, in today's competitive landscape, smart office design isn't just a nice-to-have—it's a strategic necessity.

To learn more about how to unlock the full potential of your workplace, download this step-by-step guide from JLL’s workplace experts: From Spaces to Places with Purpose.

JLL is a commercial real estate firm that combines a global platform with trusted local experts across every sector and asset class. From reducing energy costs to creating workspaces that improve productivity and attract talent, we’re always seeking a brighter way forward.