Office tenant improvement costs are higher in the Bay Area than anywhere else in the country as the region rides a wave of leasing that has sparked optimism for a continued rebound.
In San Francisco and San Jose, office renovation costs $228 and $224 per SF, respectively, well above the national average of $149 per SF, according to a report from Cushman & Wakefield. Nationwide, these costs are up 5.5% over the previous year.
The Bay Area’s higher rates are driven by labor costs, trade unions, energy regulation and elevated operating expenses, according to Cushman.
Electrical work represents the single largest expense for…