Faster-Rising Costs Await Law Firms Fitting Out Their Office Space This Year

Law firms’ costs for fitting out their offices increased by an average of 7% this year, surpassing increases of the past two years due to rising costs for construction materials and labor, according to a new report from CBRE’s Law Firm Practice Group and Turner & Townsend, a leading project and cost management firm.

Analysis of fit-out costs for law offices in 24 U.S. and Canadian markets found year-over-year increases ranging from 15% in Washington, D.C. and San Francisco to 5% in Austin, Miami and Vancouver. The national average increase of 7% this year comes after gains of 5% in 2024 and 6% in 2023.

Among the factors pushing up costs at a greater rate this year are labor shortages in certain markets and higher material costs due to tariffs. In addition, fit outs have gotten more expensive due to more use of glass and better-quality materials and the prevalence of more social spaces such as cafes and tech-equipped conference rooms.

“Even firms that are reducing their office footprints still have prioritized these types of spaces and amenities,” said Shane Sweeney of Turner & Townsend, which is a majority-owned subsidiary of CBRE. “For some, a smaller, more efficient space in a well located, top-quality building with great amenities is the ideal outcome.”

Other factors kept costs from rising even higher, such as smaller sizes for individual offices and increased use of technology to handle administrative work. The latter allows firms to better control costs for administrative headcount and workstations.

The fit out of an office entails most, if not all, interior design and construction. That includes workplace design, technology, furniture and fixtures. The national average for fit-out costs ranged this year from $274 per rentable sq. ft. on the low end to a high of $456.

About Turner & Townsend
Turner & Townsend is a global professional services company with over 22,000 people in more than 60 countries.

Working with clients across real estate, infrastructure, energy and natural resources, Turner & Townsend specialises in major programmes, project, cost and commercial management, project controls and performance, net zero and digital solutions, in markets around the world.

Turner & Townsend is majority-owned by CBRE Group, Inc., the world’s largest commercial real estate services and investment firm, with its partners holding a significant non-controlling interest. For more information visit our website: www.turnerandtownsend.com