What is an office fit-out?

How it works

Fit-outs are usually described by their starting point. Shell and core space has the structure, main services and common areas but little else. A Category A fit-out, a common UK term, adds raised floors, suspended ceilings, basic lighting and air distribution. A Category B fit-out, often called a build-out in the US, adds the occupier's own layout, rooms, finishes, furniture and technology.

In the US, landlords often contribute through a tenant improvement allowance: a set amount per square foot the tenant can spend on the build-out, usually in return for a longer lease or higher rent. Costs beyond the allowance fall to the occupier.

Cost is set mostly by early decisions: how much space, what mix of open areas, enclosed rooms and focus space, the quality of finishes, and how much mechanical, electrical and audiovisual work is needed. Because a fit-out lasts for the life of the lease, the brief should come from measured demand, not the old floor plan.

How to measure it

Before the brief, measure average and peak occupancy by space type, so the fit-out adds the spaces people use and drops the ones they avoid.
Budget per square foot or square meter, split into construction, mechanical and electrical, furniture and technology.
After the move, compare use of each new space type with the brief, using occupancy data and a post-occupancy evaluation.

Examples

A company moving to a smaller floor replaces rows of assigned desks with shared desks, more small video meeting rooms and a team area for anchor days.
A tenant negotiates a larger improvement allowance in return for a longer lease and spends it on meeting room technology.

Benchmarks

JLL puts the global average fit-out cost for a moderate corporate office at $2,150 per square meter.
JLL, Global office fit-out costs guide 2026
JLL reports North America as the most expensive region for fit-out, at $3,200 per square meter on average.
JLL, Global office fit-out costs guide 2026
According to JLL, fit-out costs can vary 10% to 30% across office typologies and specifications.
JLL, Global office fit-out costs guide 2026

Common mistakes

Designing from the old floor plan or from headcount instead of measured use.
Spending on large amenity areas before fixing basics such as enough small video rooms.
Forgetting exit obligations: many leases require the tenant to return the space to its original condition at the end.
Building fixed walls where demand is uncertain, when movable partitions would let the layout change later.

How Kadence helps

Kadence Workplace Insights shows how existing desks, rooms and floors are used, including heatmaps and no-shows, so the fit-out brief reflects measured demand. After the move, desk and room booking, check-ins and occupancy reports show whether the new spaces are used as planned. Admins can also edit floor plans in the browser, included with SpaceOps and available as a WorkOps Pro add-on.

Workplace analytics · Office space planning guide · Space management

Frequently asked questions

How much does an office fit-out cost?

It depends on the city, the size of the space and the specification. JLL's global guide puts the average for a moderate corporate office at $2,150 per square meter, with wide variation by region. The biggest levers are how much space you fit out and the mix of open and enclosed areas.

What is the difference between Category A and Category B fit-out?

Category A turns shell space into a basic, lettable office with raised floors, ceilings, lighting and air distribution. Category B adds everything specific to the occupier: the layout, meeting rooms, kitchens, finishes, furniture, branding and technology. The terms are most common in the UK.

What is a tenant improvement allowance?

A tenant improvement allowance is money a landlord provides, usually per square foot, toward the tenant's build-out. It is negotiated as part of the lease, often in exchange for a longer term or higher rent. Anything the fit-out costs above the allowance is paid by the tenant.

How long does an office fit-out take?

A light refresh of an existing office can take a few weeks. A full build-out of a large shell floor usually takes several months, plus time for design, approvals and procurement beforehand. Order long-lead items such as furniture and audiovisual equipment early to protect the move date.

Space planning Deciding how office floor area is divided and allocated, from which teams go on which floors to where each desk and room sits.
Workspace types The settings an office offers, such as desks, focus rooms, phone booths, huddle rooms and lounges, each suited to a kind of work.
Activity-based working (ABW) A workplace model in which people move between settings designed for different tasks instead of working at one assigned desk.
Lease event A lease date that forces or allows a decision, such as an expiry, a break option, a renewal option or a rent review.
Test fit A quick draft layout that checks whether a space program fits a specific building before a lease is signed.
Post-occupancy evaluation (POE) A structured review of how a building or workplace performs for the people using it, carried out after they move in.

Sources

Global office fit-out costs guide 2026, JLL

Kadence editorial team · Last reviewed September 30, 2026