How much is your new
office going to cost?

The real cost of building out

JLL has launched a new tool providing a
holistic picture of total office build out costs and tenant
improvement allowances across 51 U.S. markets.
Dive into it now.

Get the report

The real deal

You now have in your hands a powerful tool that will help you understand the tangible costs of building out an office space and how it compares across the U.S. Leveraging nearly 2,500 of our own projects and 2,100 of our lease transactions you will find details on what you can really expect to pay for new office space throughout the nation.

A complete cost guide

What

This guide details what you can expect to pay, all in, to build out a new office space across the nation.

How

This guide leverages nearly 2,500 JLL project budgets and over 2,100 JLL Research lease transactions within the United States.

Why

It is meant to provide clients with powerful insights and data surrounding new office builds. 

2017: A deeper look

Being an educated occupier in 2017 is more important than ever. The construction and development industry saw a record year in 2016, with a 2.7 percent growth in construction costs across the United States. 2017 is expected to follow suit, and robust leasing fundamentals throughout the nation will place market favorability squarely on the side of landlords as the U.S. office market enters a peaking phase.

2017 national averages

The Champions

10 most expensive cities to build

Silicon Valley – The Heart of Tech is officially the most expensive market of 2017. With high materials and labor costs, a standard in the region, Silicon Valley ranks 3rd in standalone build out costs and below national average TI packages do little to offset tenants’ bottom lines.

 

San Francisco – San Francisco landed in 2nd place due to sheer build out costs, but tenant friendly $45 per square foot TI allowances bring the market down a few spots, coming in as the 5th most expensive for tenants, leading NYC by $13 per square foot. 

 

New York City – New York is the number one most expensive city for build out costs alone, but with landlords vying for tenants and sizable TI packages, the market lands in 5th place for effective out of pocket spending.

 

Detroit – In a perfect storm of above average build out costs and minimal TI packages, Detroit swings in as one of the top out of pocket cost markets, beating out Chicago costs by $0.43 per square foot.

10 least expensive cities to build

Washington, DC – The District of Columbia comes in as the most inexpensive market of 2017. Slightly below average build out costs are offset substantially by large concession packages that are leading the national average.

 

Los Angeles – In a surprise to many, Los Angeles is the 6th least expensive market to build a new office. Enormous TI packages in the metropolis (tied with DC for the largest in the nation), prove an affordable option in notoriously expensive California. 

 

Atlanta – The flourishing city of Atlanta steps in as the 5th most affordable market, pairing southern affordability with TI allowances nearly 25 percent higher than the national average, at $52.50 per square foot. 

 

The South – In a strong showing of force, six of the ten most affordable markets in the U.S. exist in the South – further proof that affordable labor and materials in the region can greatly affect the occupiers’ bottom line. 

 

Power in numbers

This guide was built off:

Contact PDSBusinessDevelopmentResources@am.jll.com with questions on the data you see here or to talk to one of our Subject Matter Experts. 

©JLL 2017