Chicago, IL– As companies continue to refine return-to-office strategies in 2025, a growing number are prioritizing investments in high-quality, flexible office spaces designed to enhance employee experience and performance, according to JLL’s newly released U.S. and Canada Office Fit-Out Cost Guide 2025.
The annual report offers detailed insight into the evolving cost landscape and design priorities shaping workplace environments in a time of economic and policy uncertainty.
“Our 2025 guide reflects the complex challenges facing organizations as they navigate economic uncertainties while striving to create high-quality, sustainable workspaces,” said Louis Molinini, Head of Project and Development Services, Americas, JLL. “Despite these challenges, we’re seeing a continued focus on office quality and flexibility, driven by the need to enhance employee experience and performance.”
According to the report, organizations are adapting their real estate strategies to uncertain economic and trade conditions, while focusing on smart capital planning. Builders’ works—the core construction activities—represent the largest share of fit-out costs at 38%, with high variability due to regional labor costs and the mix of specialty trades required. Mechanical, electrical, and plumbing (MEP) systems, along with IT, AV, and security components, make up the next largest cost segments.
“While uncertainty is theme of 2025 so far, there are clear priorities for what makes an excellent office for occupiers,” said Andrew Volz, Research Manager, Project and Development Services, JLL. “Quality, adaptability and forward looking tech capacity are in demand regardless of any current volatility.”
Despite a turbulent economic backdrop, JLL’s 2024 Future of Work survey found that 59% of U.S. and Canadian organizations plan to increase investment in office fit-outs over the next five years. As cost pressures remain unpredictable, JLL emphasizes the importance of dynamic planning strategies.
“Helping organizations focus on short-term, actionable steps that align with long-term goals and regularly reassess market conditions is key,” added Molinini. “Close collaboration with project teams and flexible budgeting strategies are crucial to accommodate potential cost fluctuations and achieve success for our clients.”
Sustainability, wellness, and adaptability are central to the evolving office landscape. With average U.S. office fit-out costs at $280 per square foot and $278 CAD per square foot in Canada, companies are balancing quality and cost in a constrained pipeline. Major coastal cities like New York, San Francisco, and Toronto top the list for highest fit-out costs, while cities in the South and Midwest offer more budget-friendly alternatives.
Looking ahead, JLL predicts continued emphasis on modular design, sustainability, and data-driven planning to help organizations align short-term improvements with long-term objectives. Companies that invest now in adaptable, future-ready spaces stand to gain lasting value as office environments continue to evolve.
As the guide concludes, strategic upgrades to existing spaces and proactive planning will be critical: “With a limited office pipeline and uncertain replenishment timeline, strategic investments in upgrading existing spaces are crucial to meeting evolving workplace standards.”
