The Cost of an Interior Office Build-Out in Houston
A key component of any lease negotiation is the tenant improvement allowance provided by the landlord to build out or retrofit an office space for the tenant’s specific use.
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’s cost exposure is a key factor in the decision-making process and an important component in determining your projected total occupancy cost.
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.
Our friends at Kirksey Architecture provide an annual Tenant Improvement Cost guideline.
Trends
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.
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—alongside 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.
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 invest heavily in amenity-rich, premium environments designed specifically to draw talent back to the office.
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, Texas in 2025.
Houston Corporate Interior Build-Out Costs (December 2025)
Basic Office
- $83–$104/SF
- Standard finishes and systems
The most basic applicable space with landlord standards, but using all new components: basic 2×4 LED lighting, standard 2×2 ceiling, plastic laminate building standard doors with mortised hardware, 18” sidelight at office fronts, minimal millwork, and all plastic laminate, $36/yd carpet tile, standard electrical and HVAC. Add up to $14/sf for first-generation space.
Mid-Range Office
- $107–$140/SF
- More glass, upgraded lighting, better millwork
Upgraded with linear LED lighting, 2×2 fineline ceiling, wood veneer building standard doors with mortised hardware, full-height glass office fronts in aluminum framing system, more extensive plastic laminate millwork with solid surface countertops throughout, $43/yd carpet tiles, more extensive electrical service with 24/7 server room AC and two supplemental fan-coil units for conference room zones. Add up to $17/sf for first-generation space.
Higher-End Office
- $158–$280/SF+ *
- Architectural finishes and premium materials.
Upgraded with some drywall ceiling areas with indirect cove lighting, architectural woodwork doors and frames, demountable glass office fronts; 30% of wall areas as premium-grade architectural woodwork, 40% with acoustical fabric wallcovering, 30% as painted drywall; extensive wood veneer millwork with premium countertops, $51/yd carpet tile, more extensive lighting and custom fixtures for artwork and accent areas. Add up to $23/sf for first-generation space.
First-Generation Space Adders
- Basic: +$14/SF
- Mid-range: +$17/SF
- High-end: +$23/SF
Furniture Costs
- Basic: $35–$55/SF
- Mid-range: $55–$70/SF
- High-end: $70–$90/SF
Specialty Spaces
Fitness Centers
$204–$316/SF
10,000 sf with strength and cardio areas, including rubber flooring, exposed painted structure ceiling in workout areas, frameless glass entry doors, pendant indirect lighting, extensive wiring for AV and TV; men’s and women’s locker rooms to have ceramic tile wet areas (four showers and two toilets each); carpeted dressing areas with plastic laminate lockers.
Conference Centers
$200–$327/SF
Similar to executive office space description except with ceiling system and acoustical upgrades, as well as individual fan-coil units for each room, VIP lounge area with millwork, coffee service, and receptionist millwork.
Dining / Kitchen / Servery
$306–$387/SF
Highest-cost interior category
5,000-sf kitchen to have 2×4 washable surface suspended ceiling, quarry tile flooring, FRP walls, all equipment by others; servery to have drywall ceiling with indirect cove lighting, ceramic tile flooring, painted drywall; custom millwork at servery and grab-and-go station; dining to have mix of drywall and acoustical ceilings, linear LED lighting, indirect cove and pendant accent lighting; some low walls with architectural woodwork paneling as room dividers, ceramic tile throughout.
* Ranges are averages. Premium office space can exceed the high end of the range.
* Construction costs only — excludes AV/IT, security, and signage.
Source: Kirksey Architecture
