{"id":65756,"date":"2025-12-31T20:14:34","date_gmt":"2026-01-01T02:14:34","guid":{"rendered":"https:\/\/coydavidson.com\/?p=65756"},"modified":"2026-02-10T11:35:44","modified_gmt":"2026-02-10T17:35:44","slug":"the-cost-of-an-interior-office-build-out","status":"publish","type":"post","link":"https:\/\/coydavidson.com\/coydavidson\/the-cost-of-an-interior-office-build-out\/","title":{"rendered":"The Cost of an Interior Office Build-Out"},"content":{"rendered":"\t\t
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The Cost of an Interior Office Build-Out\u00a0 in Houston<\/h2>

A key component of any lease negotiation is the\u00a0tenant improvement allowance<\/a> provided by the landlord to build out or retrofit an office space for the tenant\u2019s specific use.<\/p>

One of the first questions every tenant has when considering either new or refurbished office space revolves around how much the office build-out or tenant improvements (TI) will cost. The tenant\u2019s cost exposure is a key factor in the decision-making process and an important component in determining your projected total occupancy cost.<\/p>

Projecting build-out costs beyond general ranges is challenging without the benefit of the space planning process, and there are so many building type options and lease size parameters that affect this estimate.<\/p>

Our friends at Kirksey Architecture<\/strong> provide an annual Tenant Improvement Cost<\/a> guideline.<\/p>

Trends<\/strong><\/h3>
As we move into 2026, construction costs are showing signs of stabilization. While the industry is breathing a bit easier, we are still projecting a typical 3% to 5% increase over the coming year to account for ongoing inflationary pressures.<\/span><\/div>
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Several key factors are currently shaping the cost landscape. The market is feeling the squeeze from persistent skilled labor shortages particularly within the MEP trades\u2014alongside fluctuating material costs and the impact of tariffs. Additionally, the availability of financing and current interest rates remain pivotal, as capital flows toward project starts in sectors beyond the traditional corporate office and multifamily residential hubs.<\/span><\/div>
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In the world of corporate interiors, however, the trend toward “flight to quality” remains a major cost driver. High-end spaces are seeing more significant price jumps as companies<\/a> invest heavily in amenity-rich, premium environments designed specifically to draw talent back to the office.<\/div>
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All categories reference a 25,000-nrsf floor plate with 50% offices and 50% open-plan. Construction cost only; does not include owner-provided AV and IT equipment. Based on typical costs in Houston<\/strong>, Texas in 2025.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Houston Corporate Interior Build-Out Costs (December 2025)<\/strong><\/h2><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Basic Office<\/strong><\/h3><\/div>