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, 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 ones. Essentially, the larger the project, the more you may be able to benefit from economies of scale, resulting in a lower overall cost.
3. Quality of Finishes for Your Office Remodel
The quality of the finishes you select can significantly impact the cost of your project. For example, choosing high-quality woods or other materials will cost more than using laminate or lower-quality options. Decisions like these will determine how much you need to budget for higher-priced items. Keep in mind that while investing in higher-quality materials may cost more upfront, they may also have a longer lifespan and add value to your space in the long run.
The quality of finishes you choose for your office remodel can vary depending on your business and its needs. For example, law firms may be willing to invest in high-quality finishes, such as wood accents and large desks, as they often have in-person interactions with clients. On the other hand, a small tech company with mostly virtual client interactions may prioritize cost-saving measures and opt for simpler finishes, like concrete floors. Ultimately, the level of finish quality you choose will depend on your business’s budget and needs.
4. Office Layout & Amenities in Office build-out or remodel
The layout and design of your office space can also impact the overall cost of your project. For instance, an office space with multiple private offices, conference rooms, and break rooms may be more expensive to build out due to the additional walls and wiring required. On the other hand, an open floor plan with one large shared space may be more cost-effective as it requires fewer materials and labor. Keep in mind that amenities such as break rooms and conference rooms can also add to the overall cost of the project. Consider your business’s needs and budget when designing the layout and amenities for your office space.
5. Duration of the office build-out or remodel
Proper planning is crucial to the success of an office build-out project. Allowing ample time to find contractors, make design decisions, and gather materials can help ensure a better-finished product and stay within budget. However, starting the process late or making major changes during the project can lead to additional costs. To avoid these issues, it’s important to have a preliminary project schedule that outlines important milestones and the critical path of the project. This can help you stay on track and avoid costly delays or changes.
As stated in this blog, there are numerous factors that can influence the cost of your office to remodel or build-out office space projects.
If you are interested in starting your office remodel or build-out project, or want to learn more about the process, please don’t hesitate to contact our project management team. We would be happy to assist you.