Average Cost of Office Refurbishment
Is your office outdated, and you're thinking about refurbishing it? Perhaps you're wondering whether you should relocate or refurbish, and are exploring both options. Either way, your biggest question is probably "How much will it cost?"
At Zentura, we've been designing and building office refurbishments since 2008. Every week, we meet with companies exploring office refurbishment, and cost is almost always their first question. Unfortunately, our answer is always "it depends". Every refurbishment is different in scope, specification, size, and other factors. However, office refurbishment costs per sq/ft are approximately as follows:
Office Refurbishment Costs Per Sq/ft | ||
| Light-Touch Renovation | Mid-Touch Refurbishment |
Low Spec | £19 per sq/ft | £24 per sq/ft |
Mid Spec | £24 per sq/ft | £39 per sq/ft |
High Spec | £39 per sq/ft | £56 per sq/ft |
While we may not be able to give you an exact answer (yet), we will explain the different types of office refurbishment, the different factors that affect refurbishment costs, and the costs that are typically involved. By the end of this article, you'll understand roughly what you need and what it might cost.
Of course, preparing a budget is only one step in getting ready for your office refurbishment. To learn about everything else you need, read our guide on How to Plan an Office Refurbishment. It's a 7-step guide to help you plan your office refurbishment, from defining your brief right through to signing the contract. Download your refurbishment planning guide here.
Different Types of Office Refurbishment
Office refurbishments vary hugely in scope. Since refurbishments use some of your existing office, and add new features to improve, no two office refurbishments are the same. However, renovations can broadly be grouped into 3 categories, based on how extensive the works are:
Strip Out & Refit
Strip out & refit involves stripping your existing office back to its Cat A state, and then installing an entirely new workspace. These projects are the most expensive. Rather than adapting what is already there, the existing space is completely stripped out. It is then fitted out from shell & core.
Mid-Touch Refurb
Mid-touch refurb combines some of your current space with new components to suit the changing needs of your business. Because most of your existing office remains, the scope of the work varies a lot depending on your specific needs. Mid-touch refurb is a lot less disruptive and complex than full strip out & fit out.
Reconfiguration
Rather than look to transform your environment, reconfiguration resolves minor or specific issues in a low-key way. Reconfiguration works often involve replacing high-wear elements like carpet or decoration. If components have become outdated, certain parts of your office (e.g. flooring) may need to be replaced.
What Affects the Cost of an Office Refurbishment?
The cost of office refurbishments varies massively. They are more unpredictable than office fit out costs, as the scope of work is much more changeable. 6 key factors will control the cost of your office renovation: scope, size, state, specification, services, and setting. Here, we’ll break down each of these factors and how they can affect the cost of your project.
Scope
The extent of the works will have the largest impact of any one factor on your quote. A refurbishment is a highly customised project, quoted to your specific needs. With such a wide range of options, the costs can vary massively, depending on the extent of the work you require.
The main consideration is the complexity of the works. Simple things, such as re-decorating or replacing the carpet are fairly easy to do. On the other hand, reconfiguring partitions or installing bespoke design elements is more complex and costly.
Size
The size of the area you are refurbishing in your office will also impact the cost of your project. Many contractors calculate their quotes based on the quantity of materials the design calls for. Labour is then factored into that unit cost.
Whether you are refurbishing specific areas of your workspace or the entire thing will affect the cost of your project massively. A small area may be able to be done at nights or weekends, with very little disruption to your people. If the whole space is being refurbished, works may have to be phased which will increase costs.
State
The state of your building is also a key cost factor. Older buildings with solid walls and floors are much more complex to alter, and the cost increases as a result. More modern buildings with features such as raised access flooring and easy access are much simpler to work in. In this situation, the costs will decrease.
In addition to a higher initial cost, buildings in poor condition are at a much higher risk of discovering complex problems with the building during the project. There may even be structural issues. Whether they are the responsibility of you or your landlord, these will be time-consuming and expensive to resolve.
Specification
A high specification level in your project can cost more than twice as much per sq./ft as a basic design. Upgrading the materials in your workspace will come at a cost, but often is a worthy investment.
While basic office refurbishments are functional and adequate, their design tends to lack inspiration. On the other hand, many design features may look “cool” but serve no real purpose, so it’s important to consider what you are trying to achieve. Ultimately, there is no ‘right’ specification level- it's what is best for you and your staff.
Services
The condition of the services can add unexpected costs to your office refurbishment quote. The power& data, lighting, fire safety, air conditioning and plumbing systems are all invisible. If they are in poor condition, they may require extensive remedial works before you can begin other works.
For many projects, some cost in this area is unavoidable. This is especially true for mid-touch renovations and full strip out & fit outs. If you are not reconfiguring the partitioning layout, this may not be necessary. Even if you are, the design can be carefully planned to minimise or even eliminate systems alterations.
Setting
The final element that will have an impact on the cost of your project is the location. Elements such as local labour costs will affect the cost of your office renovation. In urban areas, especially London, labour costs are much higher than in some other parts of the country.
The amount of office construction in cities means there is high demand. Access can also play a part in the costs – in areas such as central London, the delivery of materials is difficult. This means office refurbishment companies will have to allow for this in their quote.
Office Refurbishment Costs per sq/ft
Office renovation projects are varied and often complex. Especially for low and mid-touch refurbishments, the costs can vary by 50% or more dependent on the requirements of your exact project.
Office Refurbishment Costs Per Sq/ft | |||
| Light-Touch Renovation | Mid-Touch Refurbishment | Full Strip Out & Fit Out |
Low Spec | £19 per sq/ft | £24 per sq/ft | £89 per sq/ft |
Mid Spec | £24 per sq/ft | £39 per sq/ft | £127 per sq/ft |
High Spec | £39 per sq/ft | £56 per sq/ft | £188 per sq/ft |
Based on projects we’ve worked on recently and 3rd party market reports, most mid-touch refurbishments will range from £24 to £56 per sq/ft. This does not include furniture. A low-spec version would cost around 25% less than the figures below, while a high-specification refurbishment could be an uplift of 50% or more.
The reason for the huge jump in the cost of a full strip out & fit out is the extent of the scope. The existing office has to be completely stripped out and disposed of, unlike the other two levels. Extensive alterations or upgrades to the HVAC and electrical systems are also often part of these projects.
Prices for a typical 10,000 sq/ft office refurbishment could vary from £190,000 to £1,880,000 or more. This depends on the scope, specification, and other factors outlined above. It's worth saying, however, that every project is different. Your unique requirements will come with unique costs.
Refurbishing Your Office
Office space, like machinery, or even staff, is an investment in your company's future. While it requires an initial outlay of cash, you will be reaping the benefits, in staff productivity, wellbeing, and satisfaction for years to come. While it may seem like a large investment, the returns can also be very large.
Now you know about standard refurbishment costs, as well as the different types of office refurbishment and what affects your office refurbishment costs, you're able to decide what you need and work out a rough budget. You're ready to get started planning your office refurbishment!
For more help deciding what you need, read "Reconfiguration v Mid-Touch v Strip Out & Fit Out - Which is Best? There, you'll learn how to decide what type of refurbishment is appropriate for your office. For more help setting a budget that is right for your company, read this article.
To learn about the full office refurbishment preparation, read our guide on How to Plan an Office Refurbishment. It's a 7-step guide to help you plan your office refurbishment, from defining your brief right through to signing the contract. Download your refurbishment planning guide here.
