Commercial office fitout costs are driven by the total floor area, the starting condition of the space, the level of finishes, and the complexity of building services. The difference between a base build and a turnkey delivery significantly impacts the total budget.
The starting state of the tenancy is the primary factor that determines if your budget is spent on basic infrastructure or high impact design.
How floor area and shape impact the budget
Most fitout contractors quote by the square metre. Budget fitouts typically range from $500 to $1,000 per square metre, mid range sits between $1,000 to $2,000 per square metre, and premium specs can exceed $4,500 per square metre. While total sqm is the baseline, awkward or narrow floor plates increase costs because they waste materials compared to rectangular spaces.
Difference between Category A and Category B
Category A covers basic landlord provisions such as raised floors, suspended ceilings, and air conditioning. Category B is the tenant fitout including branded reception areas, custom joinery, breakout zones, and full IT infrastructure. Because Category B makes the office functional for a specific business, it costs significantly more than Category A. The gap between these two can be tens of thousands of dollars for larger offices.
Building services and existing condition
Hidden costs often reside in the services located inside walls and ceilings. Upgrading electrical capacity, modifying HVAC zones, and adding plumbing for kitchens or extra bathrooms add up quickly, especially in older buildings where services are non compliant. In over 35 years of delivering Melbourne office fitouts, we have found that building services are the most commonly misunderstood part of a fitout budget.
Why you should evaluate the space before signing a lease
Signing a lease before calling a fitout company often leads to budget blowouts because the most expensive decisions are already made. A specialist can identify old services that need replacing or compliance issues that a tenant might miss. Progressive Corporate’s project team can review the floor plate to ensure the space actually suits your intended layout before you commit.
Frequently asked questions
What is a warm shell?
A warm shell is a space where basic services like power and air conditioning are installed, but no partitions or furniture exist.
How much contingency should be included in a budget?
You should hold back 10 to 15 percent of the budget for unexpected surprises that arise during construction.
Do finish choices significantly change the cost?
Yes. There is a massive cost difference between standard options like flat pack joinery and premium custom built finishes.
Questions to ask your fitout company before you sign
- Are the existing building services compliant with current codes or will they require a full upgrade?
- Does the current floor plate shape cause material wastage for our planned layout?
- What is the cost difference between a budget and premium finish for this specific square metre area?