CONSTRUCTION COST REPORT STOBG GLOBAL
SERVICES
Commercial
Regional
Trade-Specific
Conclusion
ABSTRACT
ABOUT STOBG GLOBAL SERVICES
STOBG Global Services reimagines the construction experience for enterprise clients with delivery models focused on collaboration, measurable impact, and predictable results. We thrive in repeat client work across multiple geographies.
We leverage data-driven insights and a national network to streamline execution, enhance efficiency, and ensure consistent outcomes.
Our flexible approach fosters lasting partnerships, helping clients achieve sustainable growth and maximize value.
STOBG actively engages with regional construction professionals to monitor cost and construction trends as they develop and seek to inform and connect with others in the commercial real estate industry so that we may all better understand the daily reality of our markets.
Through our global network of operating companies and Strategic Alliance Partners, STOBG collects and analyzes data from actual projects across our geographic platform to generate timely reports that represent the market as it stands.
This pricing data is captured from a variety of actual projects and not standardized benchmarks; it is intended only to inform and advise and not for specific planning purposes. For a deep dive, our global team is here to support you.
Stephen Dennis
Account Executive
Global
Services
Stephen.Dennis@STOBuildingGroup.com
Beth Moore Senior Vice President Global Services
Beth.Moore@STOBuildingGroup.com
STOBG US OFFICE LOCATIONS
Atlanta, GA
Augusta, GA
Austin, TX
Bala Cynwyd, PA
Boise, ID
Boston, MA
Charleston, SC
Dallas, TX
Denver, CO (2)
Fairfield, NJ
Fort Myers, FL
Gainesville, FL
Honolulu, HI
Houston, TX
Irvine, CA
Jacksonville, FL
Lihue, HI
Los Angeles, CA
Mountain View, CA
Nashville, TN
New Haven, CT
New York, NY
Orlando, FL (2)
Pasadena, CA
Philadelphia, PA
Phoenix, AZ
Sacramento, CA
Salt Lake City, UT
San Antonio, TX
San Diego, CA
San Francisco, CA
San Jose, CA
Sarasota, FL
Seattle, WA
Stamford, CT
Tacoma, WA
Tallahassee, FL
Tampa, FL
Windham, NH
Woodbridge, NJ
STOBG INTERNATIONAL OFFICE LOCATIONS
Calgary, Canada
Dublin, Ireland
Edmonton, Canada Kitchener, Canada
London, United Kingdom
Ottawa, Canada
Toronto, Canada
Vancouver, Canada
METHODOLOGY
The following data represents median construction costs from actual projects under construction as well as recently procured interior fit-out projects spanning between Q3 and Q4 2024 by our family of builders within these specific locales. The data is normalized to an assumed 30,000 USF commercial interiors project in a central business district.
‘High End’ values are assumed as Class A buildings with all MEPS run from a building core and include finishes such as stone flooring, specialty lighting, and veneer casework.
‘Medium End’ projects are assumed to be Class A/ Class B new interiors within existing buildings, reuse existing perimeter heating, and more accurately reflect region median construction values.
‘Low End’ projects are based on building standard spec suites, Class B buildings, or projects that include higher levels of reuse of prior finishes, partitions, and MEPS.
All pricing includes General Contractor Fees and Staffing and assumes a Q1-2025 construction start (no escalation is included). Pricing does not include: design or consultant fees, commercial kitchen equipment, FF&E, Security, AV and other Low-Voltage infrastructure, or any work outside of tenant interior space such as site work, foundations, roofing, fenestration, or building superstructure.
STOBG understands that office design is an extension of an organization’s brand, values, and culture and that the spectrum of possible materials and inspiration changes and grows every day. Our indexing deliberately excludes ‘Showcase’ and other significantly high-value spaces to prevent the skewing of average values.
We hope this bulletin helps you understand the current cost trends and strategically plan your company’s growth into the upcoming quarters.
Corporate Interiors Market Data presented in this report reflects information collected as of January 1, 2025.
KEY TRADE COST BREAKDOWNS
FIGURE 1:
The graph above represents average key trade cost breakdowns across major markets in the United States, Canada, London, and Dublin through Q4-2024. The availability of skilled labor, economic and political uncertainty, and the desire to build backlog remained the primary drivers for construction hard costs at the beginning of 2025. Increased volatility in commodity pricing is anticipated due to escalating international trade negotiations.
COMMERCIAL INTERIOR RENOVATION CONSTRUCTION COSTS
FIGURE 2:
The graph above represents the typical range of costs of commercial tenant interior construction across major cities in North America, as well as select international markets spanning from Q3-Q4 2024. The majority of our responding markets experienced flat procurement costs through 2024 as escalation slowed and subcontractor competition increased to secure backlog through 2025.
While it’s too early to predict the effects that the proposed tariffs may have on the construction industry, some regions are reporting increased volatility in the pricing and availability of metals, fuel, and petroleum-derived materials, such as paint, plastic, and insulation.
Procurement costs leveled in 2024 as escalation slowed and subcontractor competition heated up—shaping a strong market for securing backlog into 2025
REGIONAL COST BREAKDOWNS
Cost Per Usable Square Foot
TRADE-SPECIFIC BREAKOUT COSTS
CONCLUSION
As anticipated in our previous reports, commercial interior construction costs were largely stable throughout 2024. While most major markets have sufficient labor to manage demand, regions with less robust pools of skilled labor (particularly in the Southeast and Mountain Regions) saw costs rise due to a mixture of pursuit selectivity and longer schedule durations.
Entering 2025, the corporate interiors market is optimistic, and competition remains fierce to secure backlog and procure long-lead materials ahead of potential international trade and procurement concerns. Fueled by a mixture of improving lending costs, increased landlord flexibility, newly completed amenity offerings, and ongoing Return-to-Office policies, the corporate interiors sector is seeing renewed activity from CBDs to suburban campuses.
It is important to note that project value is determined by more than just the cost of labor and materials, and potential occupants are focused on their teams’ comfort and collaboration within their new spaces. Scope elements such as sound absorption and attenuation, audio-visual integration, and social gathering and networking spaces are increasingly ‘must haves’ that need to be properly projected and incorporated into project budgets with schematic designs.
STOBG is committed to working with our clients to collect and analyze market data and being proactive in assessing potential risks and disruptions, and we continue to advise ongoing and robust due diligence in sourcing and vetting capable, qualified, and reliable trade partners. STOBG has pioneered and rigorously upheld an industry-leading prequalification process which remains our primary tool to help our clients manage risk and uncertainty.
