The office sector is facing a difficult period due to increased vacancies, hybrid work models and flight to quality. JLL’s recently released “U.S. and Canada Office Fit-Out Guide” provides data on average fit-out costs across major U.S. markets and Canada that can help inform decisions about office fit-outs in the coming years. Three trends are expected to significantly increase office fit-out costs by 2023: right sizing for the future of work, better baseline programming, and collaborative ESG implementation (environmental sustainability goals).
Right sizing for the future of work involves reducing square footage while increasing technology density within a smaller footprint which can lead to an increased cost per square foot compared with total project cost increases alone; this trend is driven by hybrid working models where employees are both in person or remotely based on their needs or preferences at any given time.. Better baseline programming includes health & wellness features such as mothers’ rooms & yoga spaces along with multi use areas & tech compatible furniture – all necessary elements for successful recruitment & retention strategies today – but these come at additional expense if special mechanical/electrical/plumbing requirements must be met too . Collaborative ESG implementation requires metrics plus effective tools like green leases that offer value propositions such as pathways towards net zero carbon goals; upfront costs may be high but collaboration between occupiers/owners could result in significant savings over time according to estimates from IMB ($3 billion annually) . By understanding these trends now , businesses will have greater insight into what they need when planning their own offices going forward .
