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Top 5 Factors That Influence the Cost of Office Remodel or Build-Out of your space

When looking for office space, it's important to keep in mind that the cost of rent is not the only expense you'll need to consider. There may be additional costs associated with making the space ready for your use, such as remodeling or build-out expenses. To accurately estimate the total cost of your project, there are a number of factors you'll need to take into account, some of which may need to be decided before you even sign a lease. It's important to carefully consider all of these variables in order to make an informed decision about your office space.


Our project management team has experience coordinating hundreds of office build-out projects throughout Texas and has helped us put together a list of the five most important factors that can skew the price tag higher or lower.


1. Condition of the Office You Plan to Remodel or Build Out


The condition of the space you are renovating can significantly impact the cost of your office build-out. In the real estate industry, there are two types of conditions that space may be in prior to the start of a project: second generation (also known as "second gen") space and shell space.


Second Gen Space

Second-gen space refers to a space that has previously been occupied. In these cases, most of the build-out work has likely already been completed, meaning that the new tenant will not need to completely strip the space and start from scratch. Renovations for second gen space typically involve low to moderate levels of work and funding and may include visual updates such as painting and replacing the carpet, as well as hidden changes such as plumbing and electrical work. Second-gen space typically requires a smaller budget than shell space.


Shell Space:

Shell space, on the other hand, refers to a space that has not yet been built out or finished. These spaces often require a larger budget as they will need more extensive work, including the installation of walls, electrical and plumbing systems, and other necessary infrastructure.


2. The size of your office space you wish to remodel or remodel

In general, larger projects tend to be more expensive overall because they require more materials and labor. However, economies of scale do come into play in most build-out projects. This means that the larger the space, the lower your costs will be on a per square foot basis. Fixed costs and bulk discounts on supplies can also contribute to a lower price per square foot for larger projects compared to smaller