How Much Does a Commercial Buildout Cost?
Commercial tenant buildouts cost $50-$250 per square foot in 2026, depending on the space type, finishes, and MEP complexity. A basic office is at the low end; restaurants, medical, and labs are at the high end.
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Cost by space type
Basic office: $50-$100/SF. Creative office with exposed ceilings: $75-$125/SF. Restaurant: $150-$300/SF (kitchen equipment and hood systems are expensive). Medical/dental: $150-$250/SF (specialized plumbing, electrical, and HVAC). Retail: $60-$120/SF depending on finishes.
What drives costs up
MEP complexity is the biggest variable. Moving plumbing, adding electrical capacity, or installing new HVAC zones costs far more than cosmetic finishes. Structural modifications (new openings, mezzanines) also add significantly. Demolition of existing improvements can run $5-$15/SF before you build anything new.
Tenant improvement allowances
Landlords typically offer TI allowances of $20-$60/SF for office, less for industrial. The allowance rarely covers the full buildout cost for specialized uses. Negotiate the allowance based on actual contractor pricing, not rules of thumb. And clarify who owns the improvements at lease end.
The bottom line
Budget $50-$250/SF for commercial buildouts. MEP complexity drives cost more than finishes. Negotiate TI allowances based on real bids.
Torch Engineering PLLC · (480) 490-0064 · info@torchengineering.com — PE stamping backed by Apex Grid Engineering.