The short answer: For a typical new office build-out, Cushman & Wakefield’s 2026 Fit Out Cost Guide puts construction costs at about $198 per square foot in Los Angeles and about $169 per square foot in Orange County, based on pricing as of December 2025. Those numbers cover construction only. Design fees, furniture, IT, and audio-visual can push the all-in cost much higher, and restaurants, medical offices, and retail spaces follow different math. That’s the main reason the numbers you find online are so far apart.
“What will my build-out cost per square foot?”
It’s a fair question, and it’s usually the first one a business owner asks after finding a space. So you search for it, and the answers range from the teens to several hundred dollars a square foot, all labeled “2026.”
Most of those numbers aren’t exactly wrong. They’re measuring different things. Once you know what’s inside a per-square-foot number (and what’s quietly left out), you can tell which ones apply to you. Let’s start with why they disagree, then look at a solid benchmark for our area.
Why don’t the build-out cost numbers online agree?
When two cost figures differ by ten times, it’s almost always because of one of these:
| What differs | Why it changes the number |
|---|---|
| What’s counted | Some figures include only construction. Others add design, permits, furniture, and technology. Some never say. |
| Condition of the space | A raw “cold shell” needs everything. A space with existing walls, ceilings, HVAC, and restrooms needs far less. |
| Type of business | An office, a hair salon, a restaurant, and a dental clinic have very different plumbing, electrical, and equipment needs. |
| Size | Fixed costs, like project management and restrooms, get spread over fewer square feet in a small space, so the per-foot price rises. |
| Finish level | Basic finishes and high-end millwork, glass, and lighting can double the interior cost. |
| Date and place | Costs change year to year, and labor and code requirements differ by region. |
| Who published it | A research report with a stated method is not the same as an undated web page with no sources. |
So before you trust any number, ask two questions: what does it include, and what kind of space was it based on?
What does an office build-out cost in Los Angeles and Orange County in 2026?
The most useful local benchmark we’ve found is Cushman & Wakefield’s 2026 Office Fit Out Cost Guide. It breaks out costs trade by trade for both markets. Here’s what it shows for a new corporate office fit-out, with private offices, workstations, a reception area, and conference rooms:
| Cost category (per sq ft) | Los Angeles | Orange County |
|---|---|---|
| Electrical | $48.22 | $41.50 |
| Mechanical, plumbing, fire protection | $35.88 | $32.47 |
| Drywall, acoustic ceilings, carpentry | $33.30 | $24.94 |
| Doors, frames, hardware | $17.43 | $17.12 |
| General requirements, general conditions, and fee | $16.40 | $12.72 |
| General finishes | $15.06 | $13.67 |
| Contingency | $14.84 | $15.02 |
| Architectural millwork | $8.80 | $6.63 |
| Miscellaneous architectural trades | $8.02 | $4.77 |
| Total | $197.94 | $168.84 |
A few things worth knowing about these numbers:
- They include a 10% contingency for surprises, which many online figures leave out.
- Los Angeles rose about 15% in a year, from $171.86 in the 2025 guide. Orange County barely moved, from $167.75.
- Second-generation space costs less. If you can reuse some existing walls, ceilings, sprinklers, HVAC, and electrical, the guide estimates costs run about 10 to 15% lower.
- Electrical is the biggest single line in both markets, which matches what the guide found across the Americas.
To put it in real dollars: for a 3,000-square-foot new office in Los Angeles, the construction benchmark alone works out to about $594,000. Treat that as a starting point for a conversation, not a bid. Your space, your layout, and your landlord’s delivery condition will move it.
What isn’t included in that per-square-foot number?
This is where budgets get surprised. The guide’s totals are construction only. It lists these separately, as typical add-on ranges per square foot:
| Add-on (per sq ft) | Los Angeles | Orange County |
|---|---|---|
| Soft costs (fees such as design) | $17.65 to $27.59 | $15.15 to $22.72 |
| IT | $7.06 to $11.03 | $5.51 to $8.26 |
| Audio-visual | $21.18 to $33.09 | $16.53 to $24.79 |
| Furniture | $38.83 to $60.67 | $27.54 to $41.32 |
| Miscellaneous | $3.53 to $5.52 | $2.75 to $4.13 |
Add every category to the construction total and an all-in office project comes to roughly $286 to $336 per square foot in Los Angeles and $236 to $270 in Orange County. Not every business needs all of these (a small office may skip most of the audio-visual), but you can see how one website can quote $170 while another quotes $300 for what sounds like the same project.
Even the all-in figure can miss costs that depend on your specific building:
- City permit and plan check fees
- Electrical service or utility upgrades
- Accessibility upgrades that an alteration can trigger along the path of travel
- Landlord fees for plan review or construction oversight
- Rent you pay while the space is being built
- Moving and signage
What about restaurants, medical offices, and retail?
The office benchmark is a reference point, not a price for every business. Other uses add their own cost drivers:
- Restaurants often need exhaust hoods with fire suppression, grease interceptors, floor drains, more plumbing and gas, bigger electrical service, and health department approval. A former restaurant with usable infrastructure can save a lot. A former store usually can’t.
- Medical and dental offices typically need plumbing in many rooms, special equipment connections, and more electrical work.
- Retail can be lighter on mechanical work, but storefront glass, lighting, and display millwork add up.
Health department and fire reviews also affect your schedule, not just your budget. Our guide on how long a commercial tenant improvement takes walks through each review and what slows it down.
How do I compare a build-out estimate to my TI allowance?
Many landlords offer a tenant improvement allowance, usually quoted per square foot. The mistake is comparing that allowance to the construction cost alone. Compare it to your total project cost, and ask these questions before you sign:
- Does the allowance cover soft costs like design and permits, or only construction?
- What condition will the landlord deliver the space in, and is that written into the lease?
- When is the allowance paid out, and what paperwork does the landlord need?
- Who pays if the project costs more than the allowance?
Those answers belong in the lease, so it’s worth getting a contractor’s walk-through first. Our checklist of what to check before signing a lease for a space you’ll build out covers zoning, permit history, and building systems in more detail.
How do I get a real number for my space?
Online averages can tell you whether you’re in the right ballpark. Only your space can tell you the real number. Here’s how to get there:
- Walk the space with a contractor before you sign the lease
- Get the landlord’s delivery condition in writing (what’s included and what’s yours)
- Make a list of what your business needs: rooms, plumbing, equipment, power, data
- Ask for any existing drawings and the suite’s permit history
- Get a simple test-fit layout before final pricing
- Ask for a line-item estimate that lists what’s excluded
- Keep a contingency for conditions nobody can see until walls and ceilings open up
What can I handle myself, and when do I need a pro?
You can do a lot of the early work: list your must-haves, confirm your use is allowed at the address, gather the landlord’s building rules and work letter, and set a realistic total budget that includes the add-ons above.
Then bring in the professionals. An architect or designer prepares the plans. Engineers handle mechanical, electrical, plumbing, or structural design when needed. A licensed commercial general contractor turns those plans into a line-item price and a schedule, then builds it.
That’s what our commercial tenant improvement team does across Los Angeles and Orange County. DCI is a Signal Hill general contractor in business since 2001, and we guide permitting, inspections, and code-compliance coordination with step-by-step outlines and line-item costing.
FAQ
How much does a commercial build-out cost per square foot in Los Angeles? For a new office, Cushman & Wakefield’s 2026 guide puts construction at about $198 per square foot in Los Angeles. Design, furniture, IT, and audio-visual are extra.
How much does an office build-out cost in Orange County? The same guide puts new office construction at about $169 per square foot in Orange County, based on December 2025 pricing, before soft costs, furniture, and technology.
Why are commercial build-out cost estimates online so different? They measure different things: construction only versus all-in, raw shell versus existing space, office versus restaurant, and small versus large. Many pages never say which.
Is a second-generation space cheaper to build out? Usually. Reusing existing walls, ceilings, HVAC, sprinklers, and electrical can lower costs. Cushman & Wakefield estimates about 10 to 15% less than a new office fit-out.
Does a TI allowance cover the whole build-out? Not always. Compare it to your total project cost, not just construction, and confirm in the lease what it covers and who pays any overage.
What costs are usually left out of build-out estimates? Often design, permit fees, furniture, IT, audio-visual, utility upgrades, accessibility upgrades, and rent during construction. Ask for a list of exclusions.
Pricing a space? Let’s look at it before you sign
If you’re comparing spaces or reviewing a lease, the most useful next step is a walk-through and a line-item estimate built for your business. We’ll look at the space’s existing condition, flag what’s likely to drive cost, and help you see the full project budget, not just a per-square-foot guess.
Give us a call at 562-425-1050 or email us at info@desistogc.com (dcidirect.net)
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