Fitout costs are primarily driven by the total floor area, the starting condition of the shell, the level of finish, and whether the scope is a Cat A or Cat B fitout.
The starting point of the space determines the bulk of the initial budget.
Does the size of the space affect cost?
Floor area is the primary starting point for any budget as most contractors quote by the square metre. A rectangular space is cheaper to deliver than an awkward, narrow floor plate that wastes materials. In Melbourne, basic open plan setups cost $550 to $600 per square metre, mid range options cost $1,200 to $1,400, and premium executive fitouts can exceed $3,000 per square metre.
What is the difference between Cat A and Cat B fitouts?
The difference between a base build and a warm shell significantly impacts the budget. A base build is essentially a concrete shell starting from scratch, whereas a warm shell already has basic services like power and air conditioning installed. Cat A fitouts cover these landlord basics including raised floors and suspended ceilings, but Cat B fitouts add the business identity through custom joinery, branded reception areas, breakout zones, and full IT infrastructure.
How do location and building age impact the budget?
Location and building age change the cost of labour and regulatory compliance. Labour costs vary by city, and heritage listed buildings often have strict restrictions that require specialist trades to meet current building codes. A bargain lease in an old building can quickly become expensive when the cost of upgrading services or modifying the structure to meet modern standards is added to the fitout.
How to reduce fitout expenses
You can lower costs by prioritising high traffic areas like reception and reusing quality existing furniture. Buying direct from manufacturers and using modular furniture removes middleman markups and allows for easier reconfiguration. Progressive Corporate provides design consultations to lock in the layout early and can implement staged fitouts to spread the investment over time.
Frequently asked questions
What is the difference between a warm shell and a base build?
A base build is a concrete shell where you start from scratch. A warm shell includes basic services like power and air conditioning.
How long does a medium office fitout take in Melbourne?
A medium office between 50 to 200 square metres typically takes 3 to 6 weeks.
Can I reuse existing furniture to save money?
Yes. Chairs, storage, and desks in good condition can often stay to reduce the total spend.
Questions to ask your fitout company before you sign
- What is included in the quote regarding labour, furniture, and installation?
- Will the space planning be optimised to avoid material waste from an awkward floor plate?
- How does the building condition affect the timeline for authority approvals?