Office Renovation Cost Guide 2024 - How Much to Budget?

An office space needs a bunch of competing elements to keep things fresh and fun while ensuring your staff stays productive. If you’re running a business and want to change up the layout or structure of the office space, or if your company is on the up and up and you're looking into expanding, then maybe considering a commercial renovation is in the books. 

But, before jumping in, ask yourself a few important questions: What kind of renovation work are you looking to carry out? What are your company-specific needs? How big is the space to renovate? This guide will help you determine renovation-related costs and understand the factors that may affect the overall cost of your project.

How Much Does a Commercial Renovation Cost Per Square Foot in Canada?

Initial Considerations

The overall cost of your office renovation will come down to the specifics of what you’re looking to do. With that in mind, it’s important to determine what exactly you’re hoping for by taking on this renovation. Before jumpstarting this project, answer these vital questions:

• Are you moving to a new location or renovating an existing one?

• Is the space you’re renovating changing functions?

• What are the needs and requirements of your business?

• What's the reason behind the renovation? (facelift, size, spatial configuration, etc.)

• Are you a building owner or tenant?

The last question on our list is especially important given that some renovation costs are covered by landlords, including aesthetic fixes, new walls or fixtures, and so forth. If you’re moving into a new space, these costs are generally worked out before signing the lease. Another factor to consider is when the building was built. 

If you’re renovating an office space in an older building, it’ll likely end up costing more. Not to mention you may uncover defects, such as mould growth concealed behind walls. Although this may be quite a headache upfront, it’s best to deal with these things as soon as possible.

Cost Estimator: Outsourcing Construction to Contractors and Architects

Cost: 20–25% of your overall budget

If you’re taking on a large-scale renovation, you’re likely considering hiring an architect or contractor. Outsourcing work will cost between 20-25% of your budget.

For example, if you have a $100,000 budget for your commercial office renovation, set aside at least $25,000 to pay your architect or contractor fees. Working with a professional is highly recommended since it will prevent missteps or major renovation issues. And, keep in mind that most renovation projects do require a permit of some sort. Note that, in most cases, architects and contractors can help you apply for permits, they're also knowledgeable about local and municipal building codes and can prevent any law-breaking outcomes.

Electrical and Lighting

Cost: $150–$300

New wiring and efficient lighting in your office space are essential, ensuring a smooth running operation. However, any project requiring moving or rearranging of electrical wiring has to be completed by a contractor. In most cities and municipalities, it's illegal to perform any electrical wiring work without a permit. To stay on the right side of the law, all electrical wiring must be outsourced. Therefore, consider the cost of hiring an electrician.

Another aspect to consider is lighting. If the lighting in your office space has a weird vibe and you're more than happy to change it, consider the costs in your budget beforehand. Keep in mind that decent lighting should be considered to create a comfortable and inviting environment as well as impress potential clients.

Basic lighting will likely cost between $120–$180, though this is per lighting point or fixture. More expensive designs or fixtures will come in on the higher end of the price scale.

Flooring

Cost: $2–$15 per square foot

The cost of flooring varies greatly and depends on several factors, including the size of your office as well as the material you choose to work with. There are plenty of flooring materials suitable for offices that won’t break the bank, including vinyl tile, concrete, as well as certain types of wood. 

Lower-end materials will run you between $2–$7 per square foot. If you’re considering an eco-friendly option or one tipping the price scale, such as hardwood, cork, ceramic, or bamboo, these materials might end up costing you up to $10–$15 per square foot.

For more information about all of the available flooring options or specific costs involved, we suggest checking out our Flooring Renovation Guide.

Walls

Cost: $12–$180 per square foot

As with flooring, the cost of renovating or adding walls to your commercial office space will vary greatly, depending on what you’re looking for, what’s currently found in the space, as well as the materials you choose to work with. A basic partition costs around $12 per square foot, whereas walls with exclusive design elements, such as glass, cost quite a lot more to install.

In such a case, you could be looking at $180 per square foot. This may be far too costly for some to consider, so do bear this in mind when thinking about the types of walls you want to install in your office.

Cost Calculator: Office Kitchen Remodel Per Square Foot

Cost: $6,000–$31,200

Nowadays, having a kitchen in or adjacent to your office space is common. It helps your employees feel cared for and appreciated. The size of your kitchen will depend on the size of your company as well as your needs. For smaller office spaces, a kitchenette can work wonderfully, complete with a fridge and sink. For others, you may require countertop space, a stovetop, or other amenities seen in a residential kitchen. Determine your needs and budget based on the square footage and desired renovations.

Bathroom

Cost: $18,000–$24,200

In some office buildings, there are already public restrooms, therefore, this feature may not be pertinent to your renovation budget. However, for those working with or hoping to build a bathroom within their workspace, determining the overall cost will likely come down to plumbing. Keep in mind that plumbing costs can be rather steep. 

If you're considering installing a shower because your office hours are gruelling or because there's a gym in the building, costs will be higher. Installing a shower can cost between $6,000 and $8,400.

What Factors Affect the Cost of a Commercial Renovation Project?

Renovation Work Considered

As mentioned above, the work commissioned will majorly impact your project’s overall budget. Erecting new walls or installing partitions will cost a lot more than laying new flooring. Moreover, more complex endeavours, such as electrical wiring, plumbing work, or structural changes will increase costs compared to cosmetic improvements, such as a fresh coat of paint or adding accessories. It’s important to carefully assess the scale of your renovation to understand the costs involved and prioritize necessary updates.

Square Footage

Naturally, the bigger the space, the greater the costs; a spacious office calls for more work hours and materials. However, economies of scale can affect the cost of office renovations. While a bigger office space is more expensive to renovate, the price per square foot may be lower. When selecting an office space, consider the square footage as well as the leasing fee, ensuring the space is used efficiently.

Plans and Renovation Schedule

By allowing yourself sufficient time to plan your renovation project, you can save money in the long run. Doing so will allow you to make important decisions, assess different costs, compare quotes provided by several businesses, and establish a budget. Overlooking said steps means making rash or rushed decisions, which increases the chances of useless spending.

Additionally, imposing a tight turnaround on the hired renovation company will most likely lead to additional fees. Odds are, the less time they have to finish the work commissioned, the higher their service fees. In other words, don’t rush your office renovation project.

Office Technology Essentials

Technology has a significant impact on the overall cost of an office space renovation. If you’re planning on adapting your new space to hybrid or flexible work modes, you’ll have to invest in high-tech equipment, such as webcams and digital meeting room management systems. Such add-ons are essential for modern workspaces, but they don’t come cheap.

Product Quality

The material quality and finishes you select for your office space have a direct impact on the overall cost of your renovation. The options available for finishes vary from basic and affordable, such as standard carpeting and lighting, to high-end choices like hardwood floorboards and luxury fabrics. While it may be tempting to opt for luxurious options, mix and match high-end touches with affordable options to create an elegant look without overspending.

If you’re worried about your budget, plan on using materials that are both stylish and long-lasting, such as a wood-look laminate instead of hardwood. It’s also important to choose finishes that meet your brand identity since they’ll influence the overall design while keeping costs under control.

Our Tips to Make a Well-Informed Decision

In conclusion, renovating an office space is a strategic investment that transforms your staff’s workspace, improving productivity. However, the project’s planning phase is crucial, so is considering key factors, such as the space’s square footage, the scope of the improvements, material selection, and required technology. By fine-tuning said features to your business’s specific needs and budget, you can maximize the impact of your renovation while also managing expenses. Don’t forget that planning time and collaborating with qualified professionals can also save you a ton down the line.

FAQ

On average, how much does it cost per square foot to refurbish an office?

Office refurbishment costs range from $20–$50 per square foot for basic updates (repainting, reflooring, light fixture updates, minor repairs, etc.) to over $150 per square foot for high-end finishes and technology (new desks, hardwood flooring, window treatments, textured wall partitions, etc.). The total depends on the size, location, and scope of work, including materials, layout changes, and compliance requirements.

How can I renovate my small office space for cheap?

Is your renovation budget as scarce as your office space? It's all good! There are still ways to complete an aesthetic small office renovation on a tight budget. 

Revamping a small office space can be quite an adventure, especially if you're at the head of a startup or starting from scratch with little to no renovation budget. Picture this: transforming your workspace into a buzzing hub of creativity and productivity without burning a hole in your wallet. Doing so entails strategic planning to make every square foot count, finding budget-friendly ways to spruce up the layout, and throwing in some eco-friendly flair, because, why not? 

We're talking DIY projects, energy-efficient LED light bulbs, affordable decor, and a few houseplants thrown into the mix. And this is where upcycling comes in handy. Why spend the money if you don't need to? Scavenge your local second-hand retailers for clean, eclectic-looking furniture to add personality to your formerly dull-looking office space. Or raid your parents' basement!

Do you have a few pieces of leftover wood from your last DIY project? Perfect! Put it to good use. Whether it's to make shelves, a table, storage crates, etc., upcycling is your best ally here.

Last tidbit of trade secrets: peruse all the interior design websites! There's a plethora of ideas and hacks out there specifically for budget-friendly renovation projects. The world is your oyster!