Gain insight into the average costs to build out three different office layouts in the U.S. and Canada using data developed from more than 2,800 projects. Learn more about our report: http://www.us.jll.com/united-states/en-us/research/tenants/fit-out-guide?utm_source=slideshare&utm_medium=social&utm_content=officefitout&utm_campaign=usfitout

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 1

2. 2018 Office fit out matrix
2
National average
Space quality and complexity
Base
Designed on a low cost and
simple budget, with finishes
focused on function over
quality. Space contains basic
technology and aesthetic
design.
Medium
Increased project complexity,
taking in to account upgraded
lighting, cabling, and some
structural changes. Average
quality materials and details
High
Complex project design with
emphasis placed on top quality
finishes and space improvements.
Increased effort spent on
aesthetics and detail design.
Officestyle
Progressive
Open office floor plan with 100% bench style space and
no enclosed offices. Design also includes numerous
varieties of both collaboration and conference spaces.
$120
per s.f.
Incl. FFE $26 AV $10
$152
per s.f.
Incl. FFE $32 AV $15
$186
per s.f.
Incl. FFE $40 AV $20
Moderate
Agile floor plan with 10% enclosed offices and 90%
open floor plan with 6’ by 6’ workspaces, with minimal
benching for visitors. Design also includes a strong mix
of conference rooms and 2-4 dedicated collaboration
spaces.
$125
per s.f.
Incl. FFE $26 AV $10
$158
per s.f.
Incl. FFE $32 AV $15
$193
per s.f.
Incl. FFE $40 AV $20
Traditional
Private office heavy floor plan with 30% enclosed
offices and 70% open floor plan with large 8’ by 8’
workspaces and no bench space. Design also includes
a several conference rooms and one collaboration
space.
$140
per s.f.
Incl. FFE $26 AV $10
$177
per s.f.
Incl. FFE $32 AV $15
$216
per s.f.
Incl. FFE $40 AV $20

3. Office styles and their impact on fit outs
Traditional Moderate Progressive
Average
cost per
square foot
$177.06
$158.23
10.6% savings over
traditional
$152.23
3.8% savings over moderate
Example
tenants
Law firms, traditional
financial companies,
privacy-focused
office spaces
Semi-modern and standard
office users, corporates
offices transitioning to
efficient office models
Tech companies, startups,
progressive corporates offices
Cost
considerations
Large volume of private
offices and significant
office furniture expenses
boost project costs
Fewer private offices
reduces construction and
furniture costs, tech
expenses are modestly
more due to increased
density
Significant savings on construction
costs due to lack of private offices is
nearly outweighed by minimal
furniture savings and a substantial
increase in tech expenses
Space
considerations
(based on sample
30,000-s.f.
floorplate)
8 conference rooms
1 open collaborative
space
12 additional conference
rooms and 4 additional open
collaborative spaces
(over Traditional)
8 additional conference rooms and 2
additional open collaborative spaces
(over Moderate)
% Change
in employee
density
0.0%
+20-25%
over Traditional
+20–25% over Moderate
+40–50% over Traditional

4. Progressive office style
2018Office Fit Out Costs
Space quality & complexity
Base
Designed on a low-
cost and simple
budget, with finishes
focused on function
over quality. Space
contains basic
technology and
aesthetic design.
Medium
Increased project
complexity, taking
into account
upgraded lighting,
cabling and some
structural changes.
Average-quality
materials
and details.
High
Complex project
design with
emphasis placed on
top-quality finishes
and space
improvements.
Increased effort
spent on aesthetics
and detail design.
OfficeStyle
Progressive
Open office floorplan with 100%
bench-style space and no enclosed
offices. Design also includes numerous
varieties of both collaboration and
conference spaces.
$120.18
p.s.f.
$152.23
p.s.f.
$186.28
p.s.f.
Moderate
Agile floorplan with 10% enclosed
offices and 90% open floorplan with 6’
by 6’ work spaces, with minimal
benching for visitors. Design also
includes a strong mix of conference
rooms and two to four dedicated
collaboration spaces.
$124.98
p.s.f.
$158.23
p.s.f.
$193.48
p.s.f.
Traditional
Private office–heavy floorplan with 30%
enclosed offices and 70% open
floorplan with large 8’ by 8’ workspaces
and no bench space. Design also
includes
several conference rooms and one
collaboration space.
$140.05
p.s.f.
$177.06
p.s.f.
$216.07
p.s.f.
Key space considerations:
• Significantly increased density over other office
styles, from 20-50 percent more employees
than Traditional and Moderate
• 100% bench-style desks create space for more
than double the amount of conference and
collaboration spaces
Key cost considerations:
• $152.23 p.s.f - 3.8 percent less than Moderate
offices and 14.0 percent less than Traditional
offices styles
• Budgets tend to be light on hard costs, with
larger technology spends
Example tenants:
• Tech companies, startups, progressive
corporate offices

5. Moderate office style
2018Office Fit Out Costs
Space quality & complexity
Base
Designed on a low-
cost and simple
budget, with finishes
focused on function
over quality. Space
contains basic
technology and
aesthetic design.
Medium
Increased project
complexity, taking
into account
upgraded lighting,
cabling and some
structural changes.
Average-quality
materials
and details.
High
Complex project
design with
emphasis placed on
top-quality finishes
and space
improvements.
Increased effort
spent on aesthetics
and detail design.
OfficeStyle
Progressive
Open office floorplan with 100%
bench-style space and no enclosed
offices. Design also includes numerous
varieties of both collaboration and
conference spaces.
$120.18
p.s.f.
$152.23
p.s.f.
$186.28
p.s.f.
Moderate
Agile floorplan with 10% enclosed
offices and 90% open floorplan with 6’
by 6’ work spaces, with minimal
benching for visitors. Design also
includes a strong mix of conference
rooms and two to four dedicated
collaboration spaces.
$124.98
p.s.f.
$158.23
p.s.f.
$193.48
p.s.f.
Traditional
Private office–heavy floorplan with 30%
enclosed offices and 70% open
floorplan with large 8’ by 8’ workspaces
and no bench space. Design also
includes
several conference rooms and one
collaboration space.
$140.05
p.s.f.
$177.06
p.s.f.
$216.07
p.s.f.
Key space considerations:
• Modest density when compared to other styles –
20-25 percent more dense than Traditional, 20-25
percent less dense than Progressive
• Mix of efficient workstations and limited private
offices creates a balance of Traditional office
dynamics and Progressive office efficiencies
Key cost considerations:
• $158.23 p.s.f. - 3.9 percent more expensive than
Progressive and 10.6 percent less than Traditional
• Average hard costs due to moderate number of
dividing walls and private offices, but benefits from
savings on open floorplan spaces
• FF&E costs weighted toward equipping private
offices and 6’ x 6’ workstations
Example tenants:
• Semi-modern and standard office users, corporate
office transitioning to efficient model

6. Traditional office style
2018Office Fit Out Costs
Space quality & complexity
Base
Designed on a low-
cost and simple
budget, with finishes
focused on function
over quality. Space
contains basic
technology and
aesthetic design.
Medium
Increased project
complexity, taking
into account
upgraded lighting,
cabling and some
structural changes.
Average-quality
materials
and details.
High
Complex project
design with
emphasis placed on
top-quality finishes
and space
improvements.
Increased effort
spent on aesthetics
and detail design.
OfficeStyle
Progressive
Open office floorplan with 100%
bench-style space and no enclosed
offices. Design also includes numerous
varieties of both collaboration and
conference spaces.
$120.18
p.s.f.
$152.23
p.s.f.
$186.28
p.s.f.
Moderate
Agile floorplan with 10% enclosed
offices and 90% open floorplan with 6’
by 6’ work spaces, with minimal
benching for visitors. Design also
includes a strong mix of conference
rooms and two to four dedicated
collaboration spaces.
$124.98
p.s.f.
$158.23
p.s.f.
$193.48
p.s.f.
Traditional
Private office–heavy floorplan with 30%
enclosed offices and 70% open
floorplan with large 8’ by 8’ workspaces
and no bench space. Design also
includes several conference rooms and
one collaboration space.
$140.05
p.s.f.
$177.06
p.s.f.
$216.07
p.s.f.
Key space considerations:
• Lowest employee density of all three styles, ranging from
20-50 percent fewer employees
• Higher volume of private offices and larger 8’ by 8’
workstations can limit the amount of interaction
opportunities, focus on privacy
Key cost considerations:
• $177.06 p.s.f. - 16.3 percent more than Progressive offices
and 11.9 percent more than Moderate offices
• Tends to have higher hard costs compared to other styles
due to more materials for dividing walls and enclosed
private offices
• FF&E costs in budgets tend to be high, with a significant
uptick in spending driven by private office furniture and large
high-walled workstations
Example tenants:
• Law firms, traditional financial companies,
privacy-focused office spaces

7. National outlook
Rising construction costs
• Construction costs grew by a steady 3% across the U.S. and Canada in
2017. With the economic and materials scenario today, we can expect similar
increases through 2018.
The Future of Work
• Office space is evolving in response to our dynamic workforce. Real estate is
a vehicle to help companies achieve success. Effective office styles play a
key role.
Leasing fundamentals are pivoting
• Many metros are seeing significant new development hit the market.
Landlord’s of new and existing assets are vying for tenants; and face rents,
amenities and TIs are shifting
Many factors are impacting office fit out scenarios today, and
it’s key to know how they could affect client projects

8. TI allowances
1. The wave of new supply
• In 2017, nearly 69 m.s.f. of new office space was delivered in the U.S. alone,
47% preleased. New product is impacting supply and demand as office
inventory expands faster than tenant demand.
2. A flight to quality
• Tenants are consistently moving towards higher quality office space. Today,
landlords of older buildings are increasingly offering larger TI packages to
encourage tenants to update and build out superior spaces, instead of
moving to new builds.
Four factors affecting TIs today:

9. TI allowances
3. Steady climb of construction costs
• Construction costs grew 15.5% in the U.S., and 7.1% in Canada over the last 5
years. As the cost of an office fit out continues to mount, tenants expect landlords
to foot a larger part of the build budget.
4. Offsetting higher rents
• TI’s play a key role in effective rental rates and cost of occupancy to tenants.
Recently, big TI packages have helped offset peak rents and premium new product
pricing across markets. While the face value of a deal is increasing (via rents), TI
allowances are helping maintain net effective rents.
Four factors affecting TIs today:

10. Get the whole report
Our goal is to harness the business intelligence data we collect to help our clients achieve their real
estate ambitions. In order to continue and deepen this conversation, our 2018 U.S. and Canada Fit
Out Guide, compares average costs to build out three different office styles across 59 markets.
Get the entire report here