AMERICAS

Fit-out cost landscape across The Americas

Explore fit-out trends across North and South America, where market pressures, occupier expectations and delivery challenges vary widely by location. From the flight to quality and amenity-led workplaces in major US cities to rising demand, import pressures and evolving workplace standards across South America, these insights highlight the key forces shaping fit-out decisions across the Americas.

North America

Amenities, amenities, amenities

While regional markets vary significantly, what links them is a lack of premium space – from tech and finance firms looking for unparalleled levels of amenities in New York and Silicon Valley, to the increased quality of Latin American fit outs to compete in the global market for staff.

“Sentiment in the North American corporate occupier market is generally strong – characterised by a return to offices and many businesses refocusing on their portfolios in established tier-one cities, rather than the secondary markets that were boosted by the post-pandemic move to hub-and-spoke-models.”

Michael Hardman, Head of Occupier & Portfolios, NAM

Miami (US$402 per ft2 for high specification) was a particular city that experienced an influx of workers post-pandemic, leading to increased office leasing activity and fit out. This direction is less prominent now, with investment increasingly focused on more traditional hubs, particularly on the East and West coasts.

New York City and San Francisco are key locations where increased demand for Grade-A space and amenity-led fit out is causing cost increases, with premium fit outs now averaging US$547 and US$532 per ft2 respectively. NYC is seeing activity ramp up both in terms of new fit-out activity and refurbishment of existing stock, as the city looks to repurpose its 20th century skyscrapers, capitalising on cost and carbon savings.

One of the elements driving the cost of new amenities in major US market fit outs is the focus on digitisation and technology. Occupiers are not just adding cafes, bars and collaboration zones – the amenities are increasingly now AI-enabled or even AI-driven. Everything from usage of specific services (including lunch and snacking) to the management of climate control and lighting is now digitally tracked and synced up. This allows for better analytics, space management decisions, and efficient building operation, but the upfront installation investment is often a significant cost. AI is not the future, it is here, and businesses are racing to keep up and lead the way in full adoption and integration into daily office life.

Uncertainty around the Tariff landscape and the crisis in the Middle East continues to impact cost volatility but in general the North America fit-out market has remained resilient and robust.

The lifestyle play

Demand in top-tier US cities is being driven in particular by technology, finance and legal businesses that are seeking to compete in the war for talent – using the office to attract and maintain key staff by focusing increasingly on how the workplace benefits people’s lifestyles and wellbeing. This means that occupiers are starting to move away from a focus on desk density that has dominated recent years – allowing more flexibility in how space is used to appeal to and attract workers.

San Francisco has had a tough time in recent years, and although vacancy rates fell modestly towards the end of last year, the market is still grappling with how to reposition itself. Technology companies and start-ups continue to favour it, providing a source of optimism.

Across the border in Toronto, high-specification fit-out costs are now CA$432 per ft2, closely comparable to Vancouver. Overall, the Canadian occupier market is poised for growth, but it will require careful management and strategic planning to navigate the evolving landscape and recent geopolitical knocks to confidence.

South America

“In Latin America, we’re seeing a significant step up in the quality of fit outs that alongside high sector demand and limited availability of Grade-A floorplates is pushing up costs. This comes as regional occupiers are also having to manage the volatile trade relationship with North America, leading to more clients seeking to build up local supply chains.”

Jacquelina Dankfort, Occupier & Portfolios Lead, LATAM

It is a widely varying picture across the region. Bogota offers affordable high-specification fit outs, averaging Col$742,862 per ft2, while Buenos Aires remains at the top of the region at Arg$550,979 per ft2. This gap is largely driven by high import taxes which can increase the cost of imported materials and provisions by up to 150%, rather than by excess market demand.

Demand at a sector level is also fuelling costs. Chile’s historically strong mining sector is still experiencing significant backing, with investment forecasted to reach US$104.5bn through to 2034. This is putting upward pressure on demand, reflecting in average high-specification fit-out costs in Santiago standing at Ch$311,105 per ft2.

Tariff fall-out

At the same time, policy from the United States means that Latin American clients are having to navigate customs challenges and factor these into lead times. As a result – despite limited local manufacturing capacity for particular furniture items and HVAC equipment for premium fit outs – global occupiers are increasingly exploring local market vendors to cut these down where possible. Mexican markets benefit from some shielding from foreign trade policy due to the United States-Mexico-Canada Agreement (USMCA).

Move costs for the region

The Americas, specifically North America, continue to represent the highest-cost region globally for office fit outs, with average rates reaching $3,515 per m² (US$327/ft2), significantly above the global benchmark. This premium environment has a direct knock-on effect on move-in budgets, as elevated construction and technology costs drive up the price of sequencing, commissioning, IT migration and wider business-readiness activities.

View data here

Persistent shortages of skilled labour, combined with ongoing increases in material prices, are maintaining upward pressure on budgets, and contractors anticipate further cost escalation in the short term.

For occupiers, this translates into more expensive decant strategies, greater reliance on complex swing‑space arrangements, and a growing need for early contractor involvement to manage risk and maintain programme certainty.