Office Refurbishment Costs
Are you planning an office refurbishment? If so, your biggest question is probably “How much will my office refurbishment cost?” It’s a crucial question, but the answer is "it depends". We’ve given a full answer to that question here. However, you need more than industry benchmarks. You need to understand what your refurbishment will cost, and what will drive that up or down.
At Zentura, we’ve been designing and building office refurbishments since 2008. With a focus on fast-track projects in occupied spaces, we’ve developed a detailed understanding of the different drivers that impact office refurbishment costs.
In this article, we’ll break down the 3 major factors that will dictate the cost of your upcoming office refurbishment: Size, scope, and specification. We’ll also touch on 2 other key factors: utilities systems and building state. By the end, you’ll understand how these factors affect your project costs, and how to manage them in your office refurbishment.
1) Size
The biggest cost driver of your office refurbishment is the size of your space. This will dictate the amount of materials and labour, driving your costs up or down accordingly.
Larger spaces require more materials and labour to complete. They are also more complex and require more design and project management. The layout of the space will also have an impact. Open plan layouts are more space and material-efficient than traditional office layouts.
There is a huge range of refurbishment costs, but a good way to set an initial project budget is on a cost-per-square-foot (sq/ft) basis. A mid-touch, mid-spec project would cost around £39 sq/ft. This means a 5,000 sq/ft space would cost ~£195,000, while a 25,000 sq/ft space would cost £975,000. Larger spaces benefit from economies of scale, especially in terms of design, project management, and other preliminary costs.
In most cases, you won’t be able to change the sq/ft size of your refurbishment. However, being aware of the impact of scale on your proejct is important. You should also look at making your layout as space-efficient as possible to maximise the use you can make of the space.
2) Scope
The second biggest cost driver for your office refurbishment is the scope of the project. A light-touch reconfiguration or cosmetic refurbishment will cost far less than stripping the office back to concrete and refitting it.
Again, the two main components of this cost driver are labour and materials. A more extensive project will require more materials, which take longer to install. More extensive refurbishments are also more complex and increase the risk of unforeseen remedial works.
The scope of your project will impact the sq/ft figure referred to earlier. For example, a mid-spec, light-touch cosmetic refurbishment in a 10,000 sq/ft space could cost £240,000. For a full strip out & fit out refurbishment, of the same specification in the same office, could cost more than 5 times as much – around £1,270,000.
You will have more control over the scope of your project than the size. Depending on your budget, you may need to value-engineer your project scope, removing unnecessary parts. Sometimes, cosmetic changes can make a significant impact without the cost and time commitment of a full strip out & fit out.
3) Specification
The last of the 3 key refurbishment cost centres is the specification. The quality and type of materials used will have a huge impact on the final project cost. This is especially true of the furniture, fixtures, and equipment (FF&E) package.
The FF&E specification is crucial because it is most of what your people will see and experience within your office. High-end materials such as natural stone or solid wood will be significantly more expensive than their artificial imitations but will provide a different experience within the space.
FF&E is a major component of any refurbishment project. Typically, it comprises around 25% of the overall budget. However, depending on the level of specification you choose, it could range from 15% to 50%.
You have much more control over the specification of your project than the size or scope. You will need to work closely with your design & build company to set an appropriate specification and keep to that. It’s important to balance creating a statement space with keeping it affordable for your company.
4) Systems
They’re often forgotten about but your building systems are a crucial part of your office refurbishment. Your building systems comprise all the unseen services that your office needs to operate. This includes air conditioning, lighting, power, data, and plumbing.
If you are reconfiguring partitions within your space, then air conditioning, lighting, power and sprinklers will all have to be moved to accommodate this. This is much more costly than you might think, as the entire system has to be decommissioned, reconfigured, and then recommissioned.
Building systems works typically comprise around 25% of refurbishment costs, depending on the scope of the refurbishment. However, if you have a traditional office layout or are doing a lot of partition works, then the systems will require a lot of adaptions to suit the new layout. Keeping the layout as open plan as possible will keep your building systems costs down.
5) State
The final major factor that will impact the cost of your office refurbishment is the state of your office building. Key factors to consider include the age, structural integrity, state of repair, and any listed status.
Older buildings often require more extensive repairs of upgrades to meet modern standards. They are also more complex and risky to refurbish, which increases cost. Common areas of increased cost include plumbing, wiring, disabled access, and fire stopping. There is also an increased risk of encountering an unforeseen building issue which could increase costs and timeframes.
Refurbishing an older building (especially those built before 1980) can cost up to 30% more than the same project in a newer building. While there is not anything you can do about the age of your building, it’s important to consider the impact on your budget, and you may want to consider an office relocation instead.
Reducing Your Refurbishment Costs
Every office refurbishment is different, so, unfortunately, we can’t say for sure what your office refurbishment will cost. Because your project is bespoke, however, it’s crucial that you understand the key cost components of your project, and how you can manage them.
Understanding these key cost drivers will save you a lot of time, money, and stress. From the size, scope and specification, to the services and state, understanding what makes your project more or less costly will enable you maximise your office refurbishment ROI.
By working with an experienced office refurbishment partner who understands how to manage these variables, you can ensure that you create a workspace that suits the needs of your people and company, as well as staying within budget. At Zentura, we specialise in fast-track occupied refurbishment works that minimise disruption to you and your people. Learn more about our office refurbishment capabilities here.
To take the next step in your refurbishment journey, download your Office Refurbishment Planning Guide. You’ll get a 7-step guide to help you plan your office refurbishment, right from from defining your brief right through to signing the contract. To learn more about office refurbishment benchmark costs, read this article.
