The fifth edition of the London & South East Occupier Fit Out Cost Guide is looking at average commercial fit out costs across a range of sectors, to help guide occupiers through the early stages of defining their relocation budgets. It provides an indication of the fit-out construction costs associated with delivering low, medium and high quality specification fit outs within London and the South East.
We have also provided an 'all-in' section to include furniture, audio visual, professional fees and contingency to provide a guide to total costs associated with a fit-out project.
Paul Montgomery, Head of London Cost Consultancy, says that occupiers in 2019 face an immediate uncertain economic future and their real estate strategy will have to be dynamic to react to the changing conditions. Offices are “working harder” to meet new agile working requirements, as a result they are more efficient in space usage; the result of which is arguably higher costs per square foot but lower total capital outlay as space taken is reduced.
- There was a 1% increase in the cost of fit out projects between January 2018 and January 2019
- There is a strong pipeline of work through the second half of 2018 (however this did not equate to the anticipated continued rise in price levels)
- The second 6 months of 2018 saw pricing stabilise after a 2% rise in the first half of the year
- Contractors continued to price at competitive levels to secure a strong order book for the start of 2019
- Early indications on tender returns received in the first part of 2019 is that pricing remains tight with some very competitive levels being seen.