Colliers Budget Planner
Everything you need to know for fit-out budget planning in 2025
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About Colliers Hungary
Colliers was established in Hungary in 1992 and has developed its strong presence in the commercial real estate market and since then has become one of the leading international commercial real estate brokerage and consultant firms in the country as well as in Central and Eastern Europe.
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About Colliers DDD
Colliers 360o Integrated approach
At Colliers we deliver 360-degree integrated services, enabling us to deliver tailored, end-to-end solutions. We understand, interpret, and consistently prioritize our clients’ needs and objectives throughout the entire project lifecycle.
We use our established Define . Design . Deliver . approach with our in-house expertise. We have experienced that in many cases, the budget is one of the key driver of the project, which is why our design-to-cost approach is highly appreciated by our clients.
Understanding this need, we created this guide for our existing and future clients to prepare insight on current cost levels. In this document we have compiled the fitout and FF&E (fixtures, furniture and equipment) costs for 2024, with differentiating 3 typical layout scenarios and 2 requirement levels.
COST
CONSULTANTS
Optimization and value engineering at every stage of the project
PROJECT MANAGERS
Organization and execution of fitout works, coordination of suppliers
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Research and analysis, repositioning brief
Depending on the priorities and constraints of the project, we select the appropriate set of in-house experts for the project
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Green certifications, sustainability, wellbeing consultancy
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Tenant representation, leading search for new office, location analysis, negotiation or renegotiation
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TEAM WITH DESIGNERS AND CONSTRUCTION TEAM
Space planning and interior design
Construction market
Overview
In 2024, the construction industry’s price dynamics show significant consolidation, primarily due to declining public and private sector investments and a simultaneous decrease in demand for construction.
For raw materials, only minimal price increases (+4% yoy) were observed in 2024. The main causes of price increases were rising labour costs (+13,2% yoy) and the price of certain specialized construction materials.
Additionally, the EUR/HUF exchange rate, which stayed below 400 forints until the end of the third quarter of 2024, did not create significant upward pressure on prices, despite its strong influence on the costs of construction materials (with an import ratio of nearly 50%).
Forecast
Although the producer price index in the construction sector has undergone a significant correction, a key risk factor remains the potential rise in construction material prices due to a weak exchange rate in Q4 2024 (above 400 EUR/HUF) and continued wage growth. For 2025, wages are expected to increase by approximately 9%.
Furthermore, demand is expected to strengthen in 2025, particularly in the second half of the year, which will also put pressure on prices
Consequently, we anticipate a return to construction price growth driven by a weak exchange rate, wage increases, and rising demand. This suggests that advancing investments could be justified under the current circumstances.
Figure 1. Construction Producer Price Quarterly Change
%
2. EUR/HUF exchange rate
EUR/HUFex.rategrowthdid noteffecteddecisivelythe prices
EUR/HUFex.rategrowth willbereflectedinprices
Source: National Bank of
Figure
Fit-out budget planning
Introduction to fit-out
Cost indicators defined within this document are the total cost of the fit-out works from shell & core* condition. Prices are presented in /sqm figures and were calculated for 6 scenarios, which are different in layout and requirement level. Price levels are based on the fit-out and FF&E offers for projects managed and delivered by Colliers in 2024-2025 Q1.
LANDLORD CONTRIBUTION:
The figures do not include fit-out contribution, which is typically provided by the landlords. Relocation to an alternative building or renegotiating the effective lease terms with your current Landlord provide an opportunity to achieve significant contribution from the Landlord. These contributions can be offset from the total fitout costs defined herein.
(In case of a 5-year lease commitment, the contribution typically covers the minimum standard fitout considering a 30-70% open-cellular ratio.)
THE FIGURES FOR FIT-OUT WORKS IN THE FOLLOWING DO NOT INCLUDE:
• Wet blocks (typically in common area)
• Sprinkler System (most cases not required in office space), if the building has sprinkler, further 30-50EUR/ sqm has to be considered.
• Landlord management fees: these vary in the different buildings.
• Special functions, e.g.: training rooms, dividable multi-functional rooms, gyms
REFURBISHMENT SCENARIOS
In the event of space that had already been used by an occupier, the total cost figures are expected to be lower than defined herein. The fit-out budget of a refurbishment may vary 3050% of a complete fit-out depending on the level of changes. The Cost Planner can be also used for such cases. The certain cost elements can be considered with different multiplier depending on the level of change.
FF&E AND SERVICES
We mean all furniture, fixture and equipment under this term which are necessary in a new office but are not part of the fit-out. These are typically sourced by the tenants.
Please consider the following notes for the FF&E lines:
• All FF&E is considered to be new, quantities follow the floor plans.
• IT network equipment and desktop equipment is not included.
• There is allowance planned for tenant owned security system, but it is not needed in all cases.
* Shell and core status means: only the perimeter of the tenancy exists (façade, slabs, windows, entrance door, tenancy perimeter walls), and the mechanical and electrical connection points with meters.
Fit-out budget is a spectrum
Project budget and timeline
Project phase
Budget type
As the project progresses, the budget will require ongoing revisions to reflect having more clarity on requirements and concrete solutions. In this process we will do adjustments to align with budget goals while simultaneously decreasing the contingency.
Requirement levels
Requirement levels
Standard
The standard fit-out is about keeping it simple and functional. While it fulfils basic requirements for operational effectiveness, there is limited opportunity for customizing the design to the company’s specific requirements Standard product assortments are limited This requirement level can potentially by covered by the landlord contribution.
Key notes:
• Standard architecture package (white walls, cost effective carpet and ceiling)
• Minimal glazed partitions and joinery package (simple kitchen and wardrobe)
• Standard mechanical and electrical solutions (cost effective lighting and mechanical elements, still meeting the standard specification of the building!)
• Standard FF&E package (cost effective furniture, minimum AV package)
Enhanced
An enhanced fit-out takes the standard category a step further, introducing additional features that improve both functionality and aesthetics. There is allowance planned for features like upgraded finishes, improved technology integration contribute to a more inviting atmosphere for employees and visitors. While still focused on budget limitation, this category emphasizes is seeking to create much value on the extra budget.
Key notes:
• Enhanced architecture (better acoustics, higher specification finishes, some glazed partitions, some non-standard ceiling solutions)
• Standard M&E solutions (some allowance for design lighting)
• Higher quality FF&E package, higher allowance for technology integration
Tesa
BT
Requirement level
This category offers a high level of customization, providing broad opportunities for the creation of an inspiring workplace environment, with much visual excitement . This features high specification finishes, innovative design elements, and advanced technologies. Businesses can create a distinctive brand presence through customized interior. This category not only enhances employee wellbeing and experience but also leaves a lasting impression on visitors, ultimately elevating the company's image.
Please note there are no limits on requirements and prices above the "high category," as they may rise to premium or luxurious levels based on unique specifications not addressed in this document.
Key notes:
• Enhanced architecture solutions, better acoustics and aesthetics (walls, ceilings, glazed partitions, extensive use of glazed partitions, extensive joinery package)
• High quality finishes (floor covers, wall covers, ceilings)
• High specification Mechanical solutions (e. g.: adaptable air volumes)
• High specification Electrical solutions (e.g: design specific lighting package)
FF&E description
• High specification AV (large, professional screens, budget for audio solutions, web conference devices, room booking system)
• High specification office furniture (e. g. motoric desks, top brands)
• High specification Site setup solutions (e.g.: smart lockers, extensive branding package, project specific plant concept, art programme)
Layout scenarios
Dynamic seating plan
One of the defining attributes of seating plans and test fits is the ratio of open to closed spaces (this ratio is optimized by developers for fresh air capacity). The most widely accepted area ratio is 70% open space (e.g., workspaces, reception areas, lounges, etc.) and 30% closed space (e.g., meeting rooms, dining areas, offices, etc.). If the spatial layout is designed using relocatable elements without demolition, while thoroughly defining the possible uses of the spaces, future modifications can be easily adapted to the organization's growth by replacing and moving furnishings.
However, always consider that current regulations determine the maximum occupancy of spaces!
Reference project: Qualtrics
* Please see page 15 for detailed description of Technical Specification for each level of quality. ** Fit-out cost estimation is considered from Shell & Core condition. *** Other costs include: Furniture, IT Network & Server, AV and Security.
Static seating plan
Another common example among seating plans and test fits is where the ratio of open to closed spaces is nearly equal. In this case, typically, the number of occupants is lower for the same area, and the space is more static and less adaptable. With the rise of remote work and hybrid culture, the demand for closed, typically collaborative, meeting room functions has increased. Therefore, many organizations have created such functions by reducing open spaces, shifting the initial 70-30 ratio.
It should be noted that such transformations require the involvement of multiple disciplines and can be costly, while mobile "booth" systems can also meet the increased demand!
Reference project: Borg-Warner
* Please see page 15 for detailed description of Technical Specification for each level of quality.
Fit-out cost estimation is considered from Shell & Core condition.
Other costs include: Furniture, IT Network & Server, AV and Security.
Description & cost levels
Description
ARCHITECTURE
RAISED FLOOR Regular 600*600 mm modular gypsum fibre raised floor on legs, 3,5 kN/m2 load bearing capacity
WALLS Raised floor to slab gypsum walls, 2*2 layers gypsum boards, R’w+C = 37-42 dB
GLAZED PARTITIONS Minimum glazed partitions: 40 cm wide glass panels at the doors
CEILINGS Suspended raster ceiling with 600*600 mm tiles and visible grid
DOORS DIN frame, HPL door leaf finish, 2 125 mm height
Same as standard In IT room: ESD vinyl coated 5 kN/m2 modular raised floor, allowance for adjusting to walls
Same as enhanced
Mix of slab to slab and raised floor to slab gypsum walls, 2*2 layers gypsum boards, R’w+C = 42-47dB dB Higher acoustic level in each room, R’w+C = 47-51 dB
210 cm high glass walls, single layer glass, Rw = 37 dB, frameless glass or solid doors, moderate quantity
Same as standard, in cca. 15% of the space: monolith acoustic ceilings, open ceilings, basic feature ceilings
270 cm high glass walls, double layer glass, Rw = 42 dB, framed glass doors, high quantity
Allowance higher specification suspended ceilings (higher acoustic level, concealed grid), in cca. 30% of the space: monolith acoustic ceilings, open ceilings with acoustic insulation, high-specification feature ceilings
Same as standard, glazed partitions have glazed windows Allowance for full height door, allowance for increased acoustics, automatic threshold, higher specification finishes
FLOOR FINISHES Standard modular carpet and vinyl tiles in the kitchen Enhanced quality modular carpet and vinyl tiles in the kitchen High specification carpet, vinyl tiles, gress tiles
WALL FINISHES White/ pale colour painting, on Q3 surfaces
JOINERY Custom made furniture to the kitchen
SHADING Manual standard vertical blinds or roller blinds
Same as standard, in 30% of the space: allowance for vibrant colour walls, and some acoustic panels
Custom made furniture to the reception, kitchen, wardrobes, lockers.
Standard materials and solutions.
Same as standard
Same as enhanced, additional allowance for further 30% of the space: acoustic wall covers, joinery wall covers, wallpapers, vibrant colours, feature walls (e.g. plaster works)
Same positions as in the Enhanced, but higher specification materials: stone counters, veneer, unique furniture design solutions, higher specification kitchen appliances
Roller blinds with higher specification, motoric moving in special rooms, allowance for curtains, allowance for black out in special rooms
Cost levels
the building specification requires minimally. Usually: thermostats, integration of meters in the BMS
standard features: window opening sensors to stop HVAC, monitoring of HVAC equipment
enhanced: structured utility metering, remote setting of HVAC and lighting, programable HVAC, tenant monitoring capabilities
Cost levels – Fit-out
Cost levels – Refurbishment
If you consider a refurbishment, cost levels will highly depend on the level of layout change and change of built structures.
E xamples and consideration:
- Facelift scenario: orange will apply with 100%
- 30% layout change scenario: orange will apply with 100%, PLUS yellow cells will apply with 20-50%, depending the actual assumed works
- Unit price might be higher due to lower scope
- Organizational costs depend on project phasing and terms to perform work
Cost levels – FF&E
Key notes for the FF&E budget lines:
- IT team has to be involved in an early stage to create IT scope and requirements
- Reuse can have a large impact on the FF&E budget
- In the FF&E budget prices can go very high. A well designed scope and effective tender will support to reach the budget goals.
Givaudan
Summary
With the 2 layout scenarios (Static Seating Plan, Dynamic Seating Plan) and the 3 requirement levels (Standard, Enhanced, High), we created 6 office fit-out budget scenarios.
The more cellular the space, the higher the fit-out costs will be, while the costs for furniture, fixtures, and equipment (FF&E) will decrease. It's important for to recognize that the level of requirements and associated costs, and the cellularity, are on a spectrum. Consequently, the final project goals and budget should be tailored to your specific needs.
Colliers ESG Strategy
The building's CO2 emissions constitute 30% of its overall environmental impact, with the fit-out accounting for 10% during its lifecycle. Therefore, we urge all our partners to plan their projects meticulously, considering ESG factors, and we can also advise on optimizing CO2 emissions alongside cost management.
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