TL;DR
- Class A fit-out budgets in 2026 sit at USD 200–400/sf in US gateway cities for institutional standard.
- Trophy fit-outs (executive floors, client-facing, full amenity) reach USD 500–800/sf.
- Schedules: 18–28 weeks design + permit, 16–28 weeks construction.
- Permitting is the single biggest schedule risk in NYC, SF, LA.
- Material lead times for AV, custom millwork, and specialty MEP remain extended.
Budget bands
Class A institutional fit-out budgets in 2026 run USD 200–400/sf in US gateway cities (NYC, SF, Chicago, LA, DC, Boston). Trophy fit-outs with executive floors, full-amenity client-facing functions, and bespoke millwork reach USD 500–800/sf. London equivalents convert at GBP 180–350/sf institutional, GBP 400–650/sf trophy.
Schedule structure
Standard schedule: 4–6 weeks design programming, 8–14 weeks design development to issued-for-permit, 6–12 weeks permitting, 16–28 weeks construction. Total: 34–60 weeks from kickoff to occupancy. Compress where possible by using design-build contractors and pre-permitted spec suites.
Permitting risk
Permitting is the single biggest schedule risk. NYC DOB, SF DBI, and LA LADBS routinely run 6–12 weeks for office fit-out permits and longer if structural, fire-life-safety, or change-of-use is involved. Build the float into the LOI, not the move-in date.
Material lead times
Specialty AV (control rooms, broadcast, large-format displays), custom millwork, specialty MEP (UPS, in-floor power, secure rooms), and high-end glazing all run 16–32 week lead times in 2026. Order at design-development sign-off, not construction kickoff.
Risk allocation
Best-practice contracting: GMP construction with shared savings, owner contingency 5–8%, owner-controlled allowances on long-lead AV/IT, third-party commissioning, and a project-management firm separate from the architect. Don't let any single party own all four roles.
Frequently asked questions
- Is the TI allowance enough to cover the build?
- Rarely for a trophy fit-out. Plan for USD 50–150/sf of overrun above TI on a trophy build. Negotiate amortisation of the overrun into rent at a reasonable cost of capital.
- Should I use the landlord's preferred contractor?
- Sometimes — they may know the building, but typically they negotiate against the landlord's interest, not yours. Run a competitive bid with at least three qualified contractors for any fit-out above USD 5M.