NEW YORK--(BUSINESS WIRE)--Mar. 26, 2026-- Cushman & Wakefield has released its 2026 Americas Office Fit Out Cost Guide, covering 59 markets and providing benchmarks to help occupiers plan capital investments and relocation budgets.

Office fit-out costs across the Americas increased 5.5% year-over-year to an average of $149 per square foot. Most general contractors expect labor and material costs to continue rising over the next six months, with 79% anticipating increases and none expecting declines.

Though some markets exhibit pockets of strong demand, the office pipeline has fallen to a 25-year low. Overall construction activity remains subdued, yet fit-out costs continue to rise.

Key Findings

• Fit-out costs increased to $149 per square foot
  • Average costs rose 5.5% year-over-year, with most countries seeing price growth broadly aligned with national inflation.
• No near-term relief expected
  • 79% of contractors expect labor and material costs to rise over the next six months. None expect declines.
• Contractors are absorbing more cost pressure
  • 83% expect suppliers to raise prices, but only 63% expect to increase their own pricing. 20% expect to absorb higher costs, up from 13%.
• Office construction remains limited
  • The development pipeline is at a 25-year low, with overall activity subdued.
• Wide fit-out cost variation across markets
  • San Francisco ($228 psf), San Jose ($224 psf) and Seattle ($223 psf) are the most expensive markets.
  • Argentina ($57 psf), Brazil ($79 psf) and Colombia ($84 psf) are the most cost-effective.

“Office fit-out costs continued to increase across the Americas in 2026, even as construction activity remained subdued,” said Andy Jansen, President of Project & Development Services at Cushman & Wakefield. “Contractors still expect labor and material costs to rise in the near term, with no expectation of declines.”

Cost Drivers and Market Conditions

Higher costs in Western U.S. markets reflect elevated labor expenses, strong union presence, strict building and energy codes, seismic requirements, and higher operating and insurance costs.

Commodity prices eased after 2022 but increased over the past year, particularly copper and concrete. Copper demand is being driven by electrification, including electric vehicles, data centers and power infrastructure. Tariffs on imported materials are expected to keep domestic pricing elevated.

Labor remains a key constraint. Construction employment growth across North America was minimal in 2025, while wage growth remained elevated and continued to outpace employment growth.

Electrical work accounts for the largest share of fit-out costs at 24% of total project expenses. Architectural millwork represents the smallest share at 3%.

Office Leasing and Tenant Improvement Trends

Class A tenant improvement allowances are increasing as landlords compete for high-credit tenants and respond to higher build-out costs. Occupiers are also demanding higher-end finishes, more collaborative layouts and integrated amenities, all of which increase project complexity.

Leasing activity remains selective, with demand concentrated in trophy and Class A buildings. In many major markets, Class A leasing has matched or exceeded pre-pandemic levels.

“The guide shows that office build-out decisions are being shaped by persistent cost pressure, selective demand and wide market variation,” said Jansen. “Costs continue to depend heavily on location, labor conditions and project scope.”

Regional Highlights

• United States
  • Fit-out costs increased about 5% year-over-year. The Northeast led growth at 7%, while the Midwest saw the lowest increase at 2.1%. The Tri-State region recorded the highest average costs at $193 psf.
• Canada
  • Costs have moderated from pandemic peaks but remain elevated, with a higher baseline driven by labor constraints, wage growth and trade uncertainty.
• Latin America
  • Latin America remains the most cost-competitive region at $108 psf, followed by Mexico at $119 psf, reflecting lower labor costs and less complex regulatory environments.

Brazil, Boston and Los Angeles recorded the largest year-over-year increases at 50%, 19% and 15%, respectively. Montreal, Toronto, Minneapolis, Detroit and Costa Rica saw declines. Gateway markets averaged $196 psf, about 21% above the U.S. average of $162 psf.

Click here to read the report: https://www.cushmanwakefield.com/en/insights/office-fit-out-cost-guide

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260326220155/en/

Media Contact:

Garrett Derderian
Vice President
Garrett.Derderian@cushwake.com

Source: Cushman & Wakefield