Tenant Improvement Cost per Square Foot: $50 to $300 by Finish Level (2026)

Modern Northwest Design and Build Team · Published September 14, 2026

A tenant improvement, or office build-out, costs about $50 to $100 per square foot for a basic office, $100 to $175 for a mid-range office, and $175 to $300 or more for a high-end one, based on 2026 contractor cost guides. Those are construction-only numbers. Corporate-grade fit-outs that also count furniture, technology, and design fees average $295 per square foot in JLL's 2026 U.S. guide. The two things that move your number most are the finish level you choose and the condition of the space you start from.

The quick-reference version. Contractor tiers from Bowser Construction Group, Prestige 360 Design, and Terrapin Consulting Group; the corporate row from JLL. Full detail and every source is below.

We build tenant improvements across Portland and Southwest Washington, and the question we hear before any other is "what does this cost per square foot?" The honest answer is a range, because a per-square-foot number hides two very different things: how finished you want the space, and how much of the work the building already did for you. This guide lays out the published 2026 ranges, what sits inside each one, and how to turn them into a real budget for your suite.

How much does a tenant improvement cost per square foot?

Most 2026 guides land in the same place: about $50 to $100 per square foot for a basic office build-out, $100 to $175 for mid-range, and $175 to $300 or more for high-end. Prestige 360's Texas guide runs lower at $50 to $150 all the way up, which is a reminder that labor markets matter. Terrapin's national office range is $50 to $180 per square foot, with most tenant improvement projects across all space types landing between $100 and $300.

The large corporate benchmarks sit higher because they measure more. JLL's 2026 U.S. and Canada guide puts a medium-quality corporate office fit-out at $295 per square foot, with a typical range of $230 to $375 and full market ranges from $170 to $425 depending on layout. Those figures fold in items like security, IT, and AV, which JLL says run 10 to 12 percent of the total, and they describe big-company projects with a design team, not a 3,000 square foot suite for a growing local business. Use the contractor tiers for a small or mid-size suite and the JLL numbers for a corporate headquarters.

What does each office build-out finish level include?

• Basic ($50 to $100 per square foot). An open plan with a handful of private offices, carpet tile and paint, standard ceiling grid, basic lighting, and enough electrical and data to run desks. The existing HVAC stays, with minor rebalancing. This is the tier for a company that needs functional space fast.
• Mid-range ($100 to $175 per square foot). A real mix of private offices, open area, and conference rooms. Upgraded flooring and lighting, some custom millwork at reception or a break room, and conference rooms wired for AV. Most professional offices in the Portland metro land here.
• High-end ($175 to $300 or more per square foot). Many private offices with glass fronts, premium finishes, custom millwork throughout, upgraded mechanical for higher occupancy, and a heavier AV and low-voltage package. Bowser notes that finish selections alone can swing a budget by 40 percent or more, and this is the tier where that happens.

How does the starting condition of the space change the cost?

Shell condition can add anywhere from $20 to $130 per square foot before you choose a single finish. Terrapin's 2026 guide breaks out what the tenant has to add on top of the base build-out depending on what the landlord delivers:

Source: Terrapin Consulting Group, 2026. Bowser Construction Group puts the saving from a warm shell over a cold shell at $20 to $40 per square foot.

The cheapest space of all is second-generation: a suite a previous tenant already built out, where the ceilings, restrooms, and much of the mechanical can be reused. If the layout is close to what you need, you pay for demolition of what you do not want plus new finishes, not a full build. This is the same reason a dental office build-out can cost around $75 per square foot in a former dental space and $200 or more in an empty shell.

What is included in a per-square-foot number, and what is not?

Contractor per-square-foot figures are construction: demolition, framing and drywall, ceilings, flooring, paint, doors and hardware, lighting, electrical and data rough-in, HVAC distribution, plumbing changes, and life safety. Mechanical, electrical, and plumbing together run about 30 to 40 percent of a tenant build-out, according to Bowser Construction Group, which is why a plan that adds a break room sink, a second restroom, or a server room moves the number more than a paint upgrade does.

Cushman & Wakefield's 2026 guide shows how far the all-in number sits above hard costs. Using its New York example, $220.62 per square foot of hard cost becomes $330.92 all-in once the guide adds soft costs at 10 percent, IT at 4 percent, AV at 12 percent, furniture at 22 percent, and miscellaneous at 2 percent. The proportions are the useful part: plan on roughly 50 percent on top of construction to get from a contractor's number to a move-in number.

Percentages from Cushman & Wakefield's 2026 all-in model. Contingency range from Terrapin (5 to 10 percent) and Bowser (10 to 15 percent).

Tenant improvement cost by type of space

Office is the middle of the market. Anything with commercial kitchens, medical plumbing, or heavy mechanical costs more; warehouse office costs less. Terrapin's 2026 ranges by space type:

Source: Terrapin Consulting Group, 2026. Bowser's ranges agree: retail $75 to $200, restaurant $150 to $500 or more.

If your project is one of the expensive categories, we have cost and code guides for each: dental build-out costs, restaurant kitchen requirements and costs, and retail build-out rules.

Will the tenant improvement allowance cover it?

Usually not by itself. Bowser puts typical tenant improvement allowances at $20 to $80 per square foot, and even a basic office build-out starts at $50. On a 5,000 square foot suite, a $40 allowance is $200,000 against a mid-range build-out of $500,000 to $875,000, so the tenant funds the difference unless the lease says otherwise. The allowance is also often paid as a reimbursement after the work is done, which means the tenant fronts the cash. Our guide to the tenant improvement allowance covers how the allowance is set, what it usually excludes, and what to negotiate.

Already looking at a space? Send us the floor plan and the landlord's work letter, or book a free walkthrough. We can tell you quickly whether the allowance covers the layout you want or where the gap is.

Tenant improvement costs in Portland and Southwest Washington

None of the national guides publish a Portland number, so use the finish-level table above as the starting point and expect the Pacific Northwest to sit above the national middle. Terrapin's July 2026 regional index puts the Pacific Northwest at $112 to $185 per square foot for mid-tier retail, against $90 to $180 nationally, and Cushman & Wakefield lists Seattle alongside San Francisco and San Jose as the most expensive fit-out markets in the country. Portland's labor and material pricing follows the same region. Our Portland commercial construction page covers the local permit offices and neighborhoods we work in.

Two local factors change the math more than the regional index does. The first is the permit clock: in Portland, plan review alone commonly takes 4 to 10 weeks for a tenant improvement, and the whole project typically runs 4 to 6 months from signed lease to opening, which is rent you pay on a space you cannot use. Our guides on how long a build-out takes and who pulls the permit cover both. The second is the building stock: a lot of Portland's close-in office and retail is older, and older buildings are where the contingency gets spent, on undersized electrical service, out-of-date restrooms that trigger accessibility upgrades, and mechanical that cannot serve a denser layout.

Modern Northwest has built office, medical, and retail tenant improvements across Portland, Beaverton, and Vancouver since 2008, from a hot yoga studio build-out on a tight budget to Class A office space and clinics. We price every project from a walkthrough of the actual suite, pull the permit with the City of Portland or the surrounding building departments as part of the job, and phase the work when the building is occupied so the neighbors keep operating. The per-square-foot number that matters is the one for your space, your layout, and what the landlord is delivering.

How to keep a build-out on budget

• Pick the space for its bones, not its paint. Existing ceilings, restrooms, and HVAC distribution are worth $20 to $130 per square foot. A second-generation suite that roughly fits your layout beats a cheaper cold shell almost every time.
• Decide the private-office count early. Every private office adds walls, a door, lighting, and HVAC balancing. Moving from an open plan to many offices is the jump from the basic tier to the mid or high tier. Our office size guide has the square footage per role.
• Keep the plumbing where it is. Moving restrooms or adding wet rooms is the most expensive line in the mechanical, electrical, and plumbing budget, and that budget is 30 to 40 percent of the job.
• Get a construction estimate before you sign. It turns the allowance from a hope into a known gap, and it gives you leverage to negotiate the allowance or the delivery condition.
• Carry the contingency. 5 to 15 percent, higher in older buildings. Spending it on a surprise is normal; not having it is how projects stall.
• Use a contractor who does this work regularly. Tenant improvements are a permit-and-sequence business. Experience with Portland plan review and with landlord work letters is what keeps the schedule, and the schedule is where rent goes.

Frequently asked questions

The bottom line

Budget about $50 to $100 per square foot for a basic office build-out, $100 to $175 for mid-range, and $175 to $300 or more for high-end, then add roughly half again for furniture, technology, design fees, and contingency to reach a move-in number. Check what the landlord is delivering before you fall in love with a space, because shell condition can add up to $130 per square foot before the first finish is chosen. And get a real estimate before you sign the lease, so the allowance conversation happens while you still have leverage.

Modern Northwest builds tenant improvements and commercial construction across Portland and Southwest Washington. Reach out for a free walkthrough and estimate.