How Much Does an Office Fit Out Cost?
Thinking about transforming your office? One of the first questions that comes up is cost. There’s no simple answer, as prices vary based on what you want to achieve. At Faction Interiors, we’ve worked on everything from basic to high-end office fit-outs, and we’re here to guide you through what goes into the cost, how to maximise your budget, and ways to save through tax benefits. Let’s break it down.
Factors That Affect Office Fit Out Costs
Office fit-out costs can vary widely, depending on a few key factors:
Specification Level: Fit-outs vary depending on specification often classified into Basic, Mid, or High spec. For a rough guide, construction costs can range from £45 to £95+ per sq. ft., with furniture costs adding another £12 to £35 per sq. ft. A basic fit-out is budget-friendly, focusing on functionality, while high-spec designs involve state-of-the-art finishes and smart tech.
Size and Complexity of Space: Large, open-plan offices often cost less per square foot than smaller spaces with more intricate layouts. Similarly, buildings with modern infrastructure may need fewer upgrades, saving on costs.
Mechanical and Electrical (M&E) Systems: Ageing HVAC, power, and plumbing systems increase costs significantly, especially if they need repairs or replacement to meet current standards.
Building Age: Older or listed buildings require additional work due to wear and tear, which can drive up costs. Listed buildings also involve more paperwork and compliance steps, adding to both time and expense.
Average Office Fit Out Costs
Here’s a simple breakdown of what you can expect for different levels of office fit-out:
Fit-Out Type
Construction Cost (per sq. ft.)
Furniture Cost (per sq. ft.)
Basic
£45+
£12+
Mid-Level
£65+
£24+
High-Spec
£95+
£35+
Maximising Your Budget
To make the most of your fit-out budget, it’s essential to balance quality with cost. Here’s how to achieve the best outcome without overspending:
Plan Early and Communicate Clearly: A well-planned project reduces unnecessary costs. Set your priorities and work closely with your design and build team to prevent scope changes that can add expense.
Site Visits: A thorough site inspection helps identify potential issues upfront, saving money by addressing them before they become major challenges. You can often negotiate with landlords for repairs or upgrades to be done in advance.
Choose Sustainable, Long-Lasting Materials: High-quality materials may cost more initially but reduce long-term repair and replacement costs, adding lasting value to your investment.
Are Fit Out Costs Tax Deductible?
Yes, some fit-out costs are tax-deductible! Here’s how UK businesses can benefit:
Repairs and Maintenance: Any repairs or routine maintenance are 100% tax-deductible, saving up to 25% on these costs. For example, HVAC repairs and office redecoration fall into this category.
Capital Allowances: For fit-outs that involve more than repairs (like installing new systems), businesses can claim tax relief through the Annual Investment Allowance (AIA) and Writing Down Allowance (WDA).
AIA: Covers up to £1 million per year on assets like office furniture, HVAC, and kitchen fittings, offering 100% tax relief in the first year.
WDA: For expenses exceeding AIA, this allows you to write down a percentage of certain assets each year. It’s a great fallback if your fit-out is substantial.
Consult with your accountant to ensure you’re maximising these allowances on your fit-out.
How Faction Interiors Can Assist
Faction Interiors is here to help bring your office vision to life while maximising cost efficiency. Our experienced team will:
Consult and Plan: From understanding your budget to planning every detail, we ensure your fit-out aligns with your business needs and values.
Manage Tax Benefits: With our experience in office design and construction, we can help you navigate capital allowances to make your fit-out as tax-efficient as possible.
Quality and Compliance: We work with high-quality materials and trusted contractors, ensuring your project meets all regulatory standards, including ventilation requirements.
Ready to transform your office? Let’s chat about how we can create an inspiring space within your budget.
FAQ: Fit Out Costs
How much does a basic office fit-out cost?
For a basic office fit-out in London, expect to spend around £45+ per sq. ft. for construction, plus £12+ per sq. ft. for furniture.
Are office fit-outs tax deductible?
Yes, repair costs are fully deductible, and capital allowances apply to most fit-out costs. Consult a tax expert to maximise your tax relief.
What is the best way to budget for an office fit-out?
Start with a clear plan, conduct a thorough site visit, and prioritise high-impact areas like furniture and lighting. Choose durable materials to reduce long-term costs.
FAQ: Faction Interiors
What services does Faction Interiors offer?
We provide comprehensive office fit-out services, including design, construction, project management, and aftercare.
How can I get a quote from Faction Interiors?
Reach out to us for a free consultation and estimate. Our team will discuss your needs and tailor a plan that fits your vision and budget.
Faction Interiors is here to support you from concept to completion. Let’s create an office that reflects your business, inspires your team, and makes the most of your budget