The cost of fitting out office space in Australia has climbed significantly in recent years, reflecting broader pressures across the construction industry.
Since the pandemic, office fit-out costs have risen by around 40% overall, with annual increases averaging 15% in recent years.
In 2025, Australian businesses can expect to pay about $3,220 per square metre for a moderate-style, medium-quality office in a CBD building, according to JLL’s Global Office Fit-Out Cost Guide 2025.
For high-specification office space in Sydney, the cost can reach $7,200 per square metre, estimates global construction consultancy Turner & Townsend.
What’s driving the increases?
Rising costs are being fuelled by:
- Labour shortages and wage growth, particularly in the construction sector.
- Material price inflation and ongoing supply-chain disruptions, which have pushed up the cost of everything from steel to imported furnishings.
- Sustainability requirements, shaped by environmental regulations, local government initiatives, corporate ESG goals, and employee expectations.
The JLL report notes that Australian organisations are not just responding to these challenges but actively investing in higher-quality spaces with enhanced technology and wellness features.
Spending trends
Despite the escalating costs, corporate appetite to invest in workplaces remains strong. JLL’s research shows 74% of organisations in Australia plan to increase fit-out spending in the next five years, well above the global average of 59%.
This highlights the strategic importance businesses are placing on office environments for talent attraction, retention, and brand alignment.
Cost breakdown: Where the money goes
According to JLL’s Australia and New Zealand Fit-Out Cost Guide 2025, a typical office fit-out budget is allocated as follows:
- Builders’ works – walls, flooring, joinery, finishes: 41%
- Mechanical and electrical (M&E) – HVAC, power, fire systems: 17%
- Furniture, fixtures and equipment: 23%
- Security, IT and AV systems: 12%
- Professional services (design, project management, compliance): 7%
The bottom line
With average fit-out costs pushing beyond $3,000 per square metre and premium Sydney projects topping $7,000 per square metre, businesses face a significantly higher price tag than just a few years ago.
But with most Australian corporates planning to invest more, not less, the office remains central to workplace strategy – a lever for productivity, employee experience, and long-term growth.
