We surveyed 15 general contractors across 15 markets to provide cost estimates for an in-line store fit out. The guide also examines current construction trends that impact costs and retail market fundamentals.
Highlights include:
- National in-line retail fit out costs averaged $157 per square foot (psf) in 2026, up a modest 1.4% year-over-year (YOY) as softer demand offset ongoing labor and material pressures.
- Costs vary materially by market. Northern California ($217 psf), the Pacific Northwest ($202 psf), and New York City ($181 psf) are the most expensive markets, while the Midwest ($120 psf) and Southeast ($126 psf) remain the most cost-effective.
- Persistent shortages of skilled trades – particularly for HVAC, electrical, and plumbing work – continue to sustain wage pressures and push construction costs higher.
- Price movement is increasingly driven by local demand conditions, with some markets seeing declines amid softer construction pipelines while select high-growth areas continue to post cost increases.
- A widening gap between construction costs and achievable rents, combined with tighter financing conditions, continues to limit new retail development, resulting in a muted construction pipeline.
