“Office Fit-Outs Cost in NYC Saw the Biggest Increase in 2020”

New York City experienced the largest increase in office fit-outs cost last year, with costs soaring by 14% to $213 per square foot according to a recent Office Fit Out Cost Guide published by Cushman & Wakefield. Electrical expenses accounted for the largest portion of fit out costs at 21%, followed by mechanical costs at 18%. Despite rising prices and challenges such as material delays and labor expenses, many businesses are upgrading their office spaces in order to attract employees in a hybrid work environment. However, economic uncertainty and rising interest rates may impact planned construction projects which could affect new constructions, renovations, and conversions/redevelopments.