San Francisco Bay Area Tenant Improvement Costs
In the San Francisco Bay Area, office tenant improvement costs have gone through the roof. A few years ago, new carpeting and paint was $6-8/sf, now $12-15/sf. Second generation space could be remodeled for $20-25/rsf just five years ago but now $50-60/rsf is required just to move a few walls, life-safety, Title 24 and minor work. A new 10’X12’ private office that in 2014 cost $7-8,000 to build now costs $12-15,000! In the latest SIOR magazine “The Effect of Rising Construction Prices,” this same big cost spike in office TI”s is reported across the United States. Dallas, Houston, North Carolina, Salt Lake City. What are folks doing? Longer leases to amortize the costs as well as tenants contributing to the TI expense.
