Your Guide To An Office Fit Out Project: Types, Costs, and Services

Updated On 20 May 2024.

An office fit-out is a smart investment, ensuring your workspace meets specific needs and adapts as your business grows. Additionally, it fosters a human-centered corporate culture, supporting “work-life balance”. According to the Fellowes Workplace Wellness Trend Report, 93% of employees in the tech industry prefer companies offering healthier workspace benefits, like wellness rooms, sit-stands, and ergonomic seating. Moreover, research shows that a well-designed office can boost worker productivity by 20%. 

This blog will guide you through everything you need to know about office refurbishment, how much it costs, and its different variations. Additionally, discover all the services offered in an office fit-out process and strategies to make it effective and sustainable.

What is an Office Fit Out?

An office fit out is the process of “fitting out” or customizing an empty space into a fully functional workspace that meets the unique requirements of its tenant.

Essentially, the landlord provides a bare shell, usually a dark shell or white box shell, for the commercial tenant to make improvements according to their company’s preferences. This office build-out construction may include:

• Structural elements for example, placement of windows and doors, ceilings, floor finishes, etc.
• Heating, plumbing, ventilation, and air conditioning
• Lighting, electrical, and IT/Telecommunications equipment installation
• Designing and furnishing of the interior space
• Amenities such as restrooms, leisure areas, conference rooms, reception, and kitchens
• Specialized areas like data centers, labs, manufacturing areas, or private offices
• Elevator refurbishment
• ADA-compliant features for wheelchair users and others with support needs
• Exterior renovations

Office fit out projects may also require modifying the layout or interior design of the shell, depending on the scope. Ideally, the office refurbishment contractors will design an efficient layout suitable to your business objectives where employees can flow well, communicate easily, and function effectively.

Let’s say a legal consulting firm might need open floor spaces for team collaboration and private meeting rooms for client consultations. They will also consider soundproofing the rooms for confidential discussions and integrating modern audiovisual technology for presentations. In addition, ergonomic furniture with storage areas for research materials may also be a part of their plan.

The main goal of undertaking commercial office renovation projects is to build a functional, aesthetically pleasing, and productive work environment. Similar to any other commercial project, the office fit-out process entails various stages – planning, design, procurement, and construction.

Office Fit Out vs Office Renovation: What’s The Difference

An office fit out refers to the process of designing and constructing an entirely new office space from a bare shell. For example, your company decides to purchase or lease an empty shell of a building which requires personalization in the form of glass walls, partitions, HVAC, meeting rooms, decoration, etc.

Whereas, office renovation is the revamping of the interior design of an existing workspace. For example, your ten-year-old office may require a decor makeover, modern functional furniture, or upgrading existing systems. That being said, commercial renovation is more concerned with aesthetic improvements.

The main difference between the two concepts is that fit-out involves developing the internal structure and interior design of a concrete shell which doesn’t already exist while the office renovation process aims to refurbish an existing lived-in space to modernize its outdated facilities.

Professional Benefits of Office Fit Outs

Many small business owners overlook the merits of commercial office fit outs because of the associated costs that come with them. Little do they know that investing time and money in creating a purpose-fit workplace is the business growth in future.

Here are some of the undeniable professional benefits an office fit-out provides to business owners –

Boosts Employee Productivity

The Capital One Work Environment Survey, conducted among 3,608 full-time office professionals in the United States revealed that 90% of employees agree that they perform their jobs better in well-designed workspaces. Providing a comfortable and stress-free working environment boosts employee productivity, thus leading to revenue growth.

Efficient Use of Floor Space

Office fit-out contractors are experts in planning the concept, design, and layout to fully utilize the available space. Simply moving items of furniture or knocking a wall down will make your workspace more organized.

Upgrade in Technology

A professional office renovation brings an excellent opportunity to upgrade your technology. This way, you can showcase that your company is keeping up with the advanced digital technology world. Small considerations like investing in a faster WiFi connection will significantly improve work efficiency and communication.

Enhances Company Image

The first impression of the office space must reinforce your organization’s purpose, speak of internal work culture, and build credibility on how you serve business clients and visitors. By using suitable aesthetics and interior design elements, an office fit-out contractor can help you create an immersive brand experience.

Good Return on Investment (ROI)

Whenever fitting out an empty shell, one can reduce organizational costs by installing energy-efficient LED alternatives. Moreover, promoting the use of natural lighting increases employees’ well-being and retention rates.

With great design for both the employees and visitors, companies can efficiently use their commercial office space, retain top talent, and increase their brand value.

Types of Office Fit Out

1. Shell and Core

Shell and core fit out is when the framework and envelope of the office building are complete, but key systems and services, such as power, interior walls, flooring, and lighting are missing. A shell and core office fit-out happens prior to CAT A and CAT B as these involve developing the infrastructure of the building.

Shell and core fit out includes:

• Structure
• Cladding
• Main plant
• External finishes
• Common areas such as toilets, lifts, staircases, and reception

Ideal for – Large-scale businesses requiring plenty of interior space to customize according to their specific needs.

2. Category A Fit Out

Category A or Cat A fit out is the basic finishing of the building’s interior, typically undertaken by the landlord to market the space to the potential tenants. Little more than a blank canvas, Cat A fit-out offers the installation of standard amenities every business needs to operate in a workspace. From here, the tenant is responsible for implementing the functional design and finishes that meet their company’s requirements through a Cat B fit out.

Cat A office fit out means installation of:

• Basic mechanical and plumbing services
• Electrical services like lighting, power systems, etc.
• Raised access floors
• Suspended ceilings with a basic finish
• Fire detection and protection systems, for ex. smoke detectors and alarms
• Heating, ventilation, and air-conditioning (HVAC)
• Basic internal finishes, for ex. painted perimeter walls
• Refurbished communal areas like lobbies, lifts, toilets, reception, etc.

Ideal for – Companies on a budget and/or already have office furniture. Cat A fit out is also advantageous to landlords, commercial property developers, and investors for creating a blank canvas to attract tenants.

3. Category A+ Fit Out

 

A relatively new and popular concept emerging in the industry is the Category A+ or Cat A+ office fit out which is the middle ground between Cat A and Cat B. Basically, they elaborate a Cat A fit-out with additional levels of design finishes and make it ready for immediate occupation. A CAT A+ office space represents a ‘plug and play’ ready-to-work concept which entices tenants who want to move straight in without delays.

In addition to Cat A fit out components, Cat A Plus fit outs typically include:

• Fitted kitchens and restrooms
• Partitioning including meeting rooms, offices and breakout spaces
• Furniture and workspaces
• Air conditioning and power points
• IT installation and infrastructure

Ideal for – Small business owners who can’t afford a full office refurbishment but still want to apply their branding on the space. Also, Cat A+ offices are profitable for landlords due to higher rates and shorter rent-free periods. Due to immediate occupation, it results in quicker turnarounds for landlords than Cat A.

4. Category B Fit Out

Resembling Cat A+ fit out, Category B aka Cat B office fit out provides a move-in ready space for organizations to start working. However, unlike Cat A+, Cat B fit out involves collaborating with architects and interior designers to design a bespoke office that reflects the brand’s personality.

It all starts with fit out specialists understanding the employee work culture and how the new space can bolster the company’s future goals. Here, the tenant is fully engaged in decision-making of every aspect of the Cat B fit out, whether it’s interior partitions, ceiling design, furniture selection, or brand detailing.

A Cat B office layout will have the following elements:

• Air conditioning, heating, and power points
• Fully-fitted kitchens and non-communal office amenities
• Partitioning, for ex. meeting rooms, private offices, break-out spaces, and reception areas.
• Fitted office furniture such as desks, workstations, chairs, and meeting booths.
• IT installation and infrastructure
• Design and brand detailing

Ideal for – Business owners of all sizes as it allows for designing purpose-built office areas. Cat B fit out is also suitable for those firms wanting to commence their business operations without delays.

How Much Does an Office Fit-Out Cost?

The office fit out cost depends on a multitude of factors including –

• Location
• Size and type of office space 
• Quality of finishes
• Design intricacies
• Regulatory compliances
• Mechanical and electrical services
• Sustainability improvements
• Professional fees
• Unexpected timeline delays
• Contingencies and others

 

According to a 2024 office fit out cost guide from Cushman & Wakefield, the average fit out cost in the US is $153 per square foot. If we look at the cost breakdown, 

• Mechanical and electrical systems take 41% of the costs
• Drywall and acoustic carpentry cover around 13% of costs
• Doors, frames, and hardware around 10% 
• General conditions cover 12% of costs
• Other expenses 

If tenants opt to adaptively repurpose existing commercial space, the pricing will be at a 10-15% discount. According to Statista, the average fit out cost per square foot in New York is $213, $223 in San Francisco, and $237 in San Jose. The lowest office build-out cost per square foot is $102 in St. Louis, Missouri. 

Thanks to the rising costs, Category A and A+ options are becoming popular because they give modern companies the most bang for their buck. Along with flexibility and customization, these spaces are operational with basic amenities already in place.

As employees are gradually returning to physical office spaces in the post-pandemic era, companies are more interested in high-quality properties with bonus amenities. Besides, JLL’s latest report observes that landlords are offering appealing tenant improvement packages to negate the impact of higher rents and compete for tenants.

The national average for tenant improvement allowances was reported at $44 per square foot.

Alternatively, commercial tenants having small budgets can lessen their overall square footage and optimize their space to be more efficient.

Key Elements to Consider Before a Successful Office Fit-Out Project 

Any successful commercial office fit-out project requires meticulous planning and preparation. Before starting your project, consider these key factors to ensure a smooth and efficient office renovation:

Assessing Office Needs 

Evaluate your existing space to identify areas requiring tenant improvements. Focus on optimizing layout, storage solutions, lighting, acoustics, and functionality to create a practical work environment. 

Extensive Budget Planning 

Obtain a comprehensive quote from your fit-out contractor, covering aspects such as design and technical plans, building inspections, professional services, cost of materials, and construction. This extensive planning ensures accurate cost estimation and prevents the risk of budget overruns. If you have budget limitations, prioritize the most important aspects first. 

Design Aligned with Company Brand and Functionality 

Ensure the new office renovation design reflects your brand’s colors, company’s culture, values, and vision. Ideally, the office design should maximize space utilization. Consider the latest workspace design trends including open layout spaces, flexible workstations, breakout zones, privacy pods, etc. 

integration of Service Systems 

Design the office layout to integrate essential systems such as data cabling, lighting, power outlets, air conditioning, and ventilation. Create a smooth migration plan for uninterrupted internet and telecom systems. This ensures a comfortable and functional workspace for employees.

Adherence to Regulations 

Ensure the new office design complies with all local government regulations, including fire safety, electrical setups, accessibility requirements, and health standards. Compliance reduces the risk of workplace accidents and legal issues.

Planning for Future Growth  

Every successful office fit out must consider the company’s future growth. Keep additional spaces for equipment and furniture as business expands, which can save relocation costs in the future.

Taking Input from Employees 

Engage office employees in the fit-out process by seeking their input on needs and preferences. This fosters a sense of ownership and ensures the new space meets their requirements. 

Planning the Construction to Reduce Disruption 

Your office build-out timeline should be planned to minimize disruptions to daily operations. Consider phased renovations, temporary workspaces, or after-hours construction to maintain productivity.

By addressing these factors, you can ensure a successful office fit-out that enhances productivity, reflects your brand and supports future growth.

What Services Do Office Fit Out Companies Offer?

Being an experienced design-build and renovation company, Constructive Solutions, Inc. has refurbished offices of varying scope and complexity. We understand how a commercial office fit-out can prove to be game-changing for your business. That is why, our team leaves no stone unturned to fulfill your unique requirements within time and budget.

Here is the wide range of office build-out services we as a commercial construction company offer to our clients:

Client Briefing and Site Analysis

Before undertaking an office fit out, the commercial contractor will thoroughly understand your project aspirations and unique requirements. We will also conduct site surveys to assess feasibility and help you plan the office space efficiently.

Concept Design

Using the site information and documentation gathered during the preparation stage, our team produces a concept interior design that reflects your brand, supports employee workflow, and is adaptive. Clients will be able to visualize these office fit-out designs through BIM models after which an initial budget is developed.

Design Development and Specifications

In the design development phase, our architects and interior designers will closely work with you. They will factor in the number of employees, space intention, as well as your preferences on color, finishes, functionality, and ergonomics.

After solidifying office design ideas, we create detailed specifications outlining suppliers, parts, quantities, finishes, and pricing. This guides our logistics planning of schedules, layouts, receiving, inspection, delivery, and installation instructions.

Building Approvals

Once the final office design is agreed upon, our technical design team will prepare all the necessary documentation for the construction team to execute the fit-out. This set of documentation including floor plans, drawings, and FF&E specifications will be submitted to the relevant authorities for obtaining building permits. Our compliance services ensure that your commercial project stays code-compliant.

Budget Estimation

Most office renovation companies will have a dedicated team of professionals who provide accurate cost estimates for your project. Our cost estimates are based on various factors like the scope of the work, labor rates, material specifications, permits and inspections, design fees, etc. This process leads to a realistic office build-out budget estimation.

Procurement

As part of commercial office build-out services, we procure furnishings, accessories, and other materials as per specifications from our trusted vendors. Considering long lead times and supply chain barriers in the construction industry, we communicate accordingly with manufacturers for the timely completion of your project.

Commercial Construction Services

When it comes to actualizing the office fit-out, our experienced commercial construction team ensures every aspect is done to perfection. Be it the selection of materials, quality of finishes, or placement of furniture and fixtures, we pay meticulous attention to details.

Our office build-out construction process involves –

• Site preparation and establishment of office infrastructure like partitions, walls, and ceilings.
• Installation of electrical, plumbing, and HVAC systems.
• Subcontractors completing office interiors, including flooring, painting, and other finishes as per the project’s scope.
• Installing office furniture, individual workstations, and storage units.
• Setting up IT infrastructure, cabling, lighting fixtures, and other accessories.

At the end of office fit-out construction, we develop a comprehensive “punch list” that addresses minor tasks and defects for a flawless result.

Project Management Services

Our project management services let our clients focus on their business operations while we handle day-to-day implementation. We plan, coordinate, and execute commercial office fit outs responsibly for successful outcomes within the project’s scope and budget.

Sourcing office fit-out services from commercial contractors has become more accessible and personalizable nowadays. However, business owners should only choose to work with reputable service providers.

7 Tips for an Effective Office Fit-Out

 

Tip No.1 – Brainstorm a list of ‘must have’ and ‘optional’ office fit out ideas with your employees.

Tip No.2 – Allocate extra budget to cover unforeseen expenses, also known as contingency funds.

Tip No.3 – Build a variety of workspace environments, like collaboration areas, leisure zones, or even a game room.

Tip No.4 – Make your staff members test different furniture solutions to choose the most ergonomic options. Install LED overhead lights and desk lamps wherever natural light is not feasible.

Tip No.5 – Consult IT experts on what are your technological requirements. Strategically place printers, outlets, wifi routers, and digital screens while hiding their cables to avoid clutter.

Tip No.6 – Install energy-efficient fixtures, use sustainable construction materials, and maintain optimal indoor environmental quality. Introduce greenery in the workplace to support employee health.

Tip No.7 – Consider future growth while planning the office layout to avoid unnecessary and expensive reorganizations.

How to Make an Office Fit Out Sustainable? 

IBM’s Institute for Business Value (IBV) study found that 68% of workers accept jobs from companies that follow sustainable practices. Creating a sustainable office fit-out involves several key strategies:

1. Set Sustainability Goals – Define your sustainability goals early, aligning with LEED standards to guide your office fit-out project.
2. Opt for Sustainable Materials – Use eco-friendly materials such as low-VOC paints, FSC-certified wood, and reclaimed furniture to minimize environmental impact.
3. Optimize Energy Efficiency – Implement energy-efficient lighting, maximize natural light, and use renewable energy sources. Consider technologies like circadian lighting for both sustainability and employee well-being.
4. Indoor Air Quality – Improve indoor air quality by using air purifiers, choosing non-toxic materials, and ensuring proper ventilation.
5. Water Conservation – Install water-efficient fixtures and systems to reduce water usage, and consider rainwater harvesting and greywater recycling where possible.
6. Waste Management – Properly manage and recycle waste during the commercial fit-out process, and repurpose existing furniture to reduce landfill impact.
7. Encourage Green Practices – Promote sustainable commuting options and integrate biophilic design elements, like plants, to improve employee well-being and reduce carbon footprints.

By following these steps, businesses can create functional, stylish, and environmentally responsible office spaces through fit-outs.

Case Study – Art Deco Inspired Flexible Workspace

Live Better, Sacramento

Client Details

Live Better is a lifestyle publication company operating in the United States. Their magazines contain informative segments on decor, leisure, trending topics, social issues, grooming, and related themes. Influencing readers for nearly a decade, Live Better aims to educate and entertain its audience.

The Brief

The client had recently acquired a vacant 4th floor in a commercial building for their business expansion. They needed art deco style interior design and fit out services for their 3,500 square feet office. Live Better went ahead with Category A+ fit out as it provides high-quality finishes, greater customization, and integration of modern amenities. Sustainability, flexibility, and an open-plan space were the focus of this office fit-out.

Project Delivery

After understanding the client’s vision for the office, the contractor’s team assessed the building’s infrastructure, noted down staff requirements, and created a fresh concept. The office construction company negotiated favorable prices with their suppliers, adhering to the client’s budget while executing a Cat A+ fit-out. It also prevented any compromise on the overall quality and aesthetics of the space.

Privacy and Collaboration

The open space accommodation provided desks and chairs for 70 employees alongside printing stations and storage facilities. Employees wanting to focus on individual work without distractions were assigned the specially designed breakout room. To protect the confidentiality of client interactions, we installed double glazing and acoustic door seals in the private meeting rooms.

Art Deco Vibe

Balancing modern functionality and the glamorous, luxurious aesthetic of the Art Deco era posed a challenge. Keeping in mind the client’s budget restrictions, our team brought a strong sense of identity to the office space by –

• Taking inspiration from the bold geometry typical of Art Deco style, we create accent walls for the select rooms including reception, meeting rooms, and the open space area.
• Sourcing art deco-inspired artwork from local artists to decorate the office furniture.

Functionality Solutions

Our team built a “lifestyle studio”, a multi-use area for photo shoots, content creation activities, and product display with adaptable backdrops and studio lighting.

We decided to install modular furniture and flexible partitions to accommodate different team sizes and activities. Plus, integrated high-speed internet connection to enhance digital operations.

Commitment to Sustainability

• Keeping in mind Live Better’s holistic approach, we opted for natural, earthy tones for the office interiors.
• Incorporated sustainable wooden furniture instead of plastic ones.
• Used planters to frame pathways, line walls, and decorate workstations.
• Climate control HVAC systems that optimize energy consumption.
• Smart lighting systems that enable workers to adjust brightness levels.

Results

Careful planning and flawless implementation by the office contractor’s team resulted in a truly inspiring workplace that represented identity. Owners of Live Better approved the multiple creative solutions offered by the developer in terms of adaptability, sustainability, and visual design. Staff members equally lauded the end product and the office environment it created for them.

Final Thoughts

Professional office fit-out services enable company owners to build tailor-made offices that fulfill the diverse needs of their modern workforce, inspire employees to show up, and thus boost their productivity levels. Depending on the project’s budget and desired levels of customization, tenants can choose from different build-out categories. Partner with an experienced commercial contractor to ensure a successful office fit out that meets your staff’s needs and stays within scope.

Contact us today to discuss your office renovation project.

FAQs

What mistakes should I avoid when fitting out my office?

Some of the common mistakes to avoid while fitting out your office are:

• Poor budget management
• Inefficient space planning
• Uncomfortable lighting and airflow
• Failing to engage staff members in the build-out process
• Hiring an inexperienced commercial contractor

How long does a commercial office fit out take?

A commercial office fit out will take anywhere around 12 to 16 weeks depending on the project’s scope of work. 

What are some trending office build-out ideas?

Below are some of the modern office fit out ideas:

• Flexible, hybrid, and co-working spaces
• Multi-functional furnishings and design features
• Smart office technology and connectivity
• Biophilic workspaces
• Employee health care (The WELL Building Standard)
• Sustainability

How to select the right office fit out contractor for my project?

Hire a design-build contractor who has expertise/experience in your type of office refurbishments or fit-outs. Check their accreditations, project portfolio, and the services they offer. Ask for detailed quotes from different office building contractors to compare prices.

Relevant Resources:

• What Is Fit-Out Construction
• 10 Tips On Choosing An Office Renovation Contractor