We are often asked how much a fit-out will cost by prospective clients. Our usual answer has been “It depends,” which is actually not very helpful in most cases. In this series of articles, we hope to give an indication as to what costs will be incurred for a fit-out, so you can prepare an educated budget figure for your proposed new project before engaging with a company like ours to undertake the work for you.
Commercial office fit-outs can vary widely in cost, influenced by factors such as location, design complexity, and the quality of materials used.
According to recent data, fit-out costs for office spaces in 2024 in South Africa, can range from R 2800 to R 5000+ per square metre, with additional expenses for furniture estimated between R 300 and R 500+ per square metre. These costs can be further affected by the current economic climate, including the impacts of inflation and supply chain challenges. It’s also important to consider the costs associated with sustainable building practices and the integration of technology, which are increasingly prevalent in modern office designs.
There are also often Professional Fees and other upfront costs. Along with the square metre rates mentioned above for the actual construction on-site aspect of the work, there are often other fees associated with every project, as follows:
- Architectural and Interior Design Drawings:
- Cost Estimate: 5% – 10% of the fit-out cost.
- Submission Fees to Municipality: From R 121 up to around R 20,000, depending on the project’s scale. Design fees are inversely related to the project’s size, so larger projects generally incur a smaller fee percentage.
- Fire Engineer:
- Cost Estimate: Between R 20,000 and R 60,000+ for a Rational Fire Design.
- Heating, Ventilation, and Cooling (HVAC) Engineer:
- Cost Estimate: 2.5% – 5% of the HVAC costs for additional air conditioning requirements.
- Structural Engineer:
- Cost Estimate: 2.5% – 5% of the structural works, necessary for any significant structural changes.
- Other Engineering Requirements/Professional Services:
- Depending on the type of use the space is put to, additional professional services may be needed, adding to the overall cost. These will be determined based on your specific project needs.
Please note that all of the above figures are excluding VAT, where applicable.
What to Consider When Assessing a Potential Site:
A large factor to consider when renting or purchasing an office space, which impacts subsequent fit-out costs, is how much of the existing infrastructure can be retained and reused. Items such as air conditioning, lighting and electrical reticulation, server rooms, fire detection equipment, and even existing partitioning can reduce overall costs substantially.
The most expensive spaces to rent from a fit-out cost perspective are newly built or fully “white boxed” spaces, which have no flooring, ceilings, electrical reticulation, and air conditioning equipment.
The most expensive spaces to rent from a fit-out cost perspective are newly built or fully “white boxed” spaces, which have no flooring, ceilings, electrical reticulation, and air conditioning equipment.
Old and tired bathrooms and kitchens are also costly items to renovate/refurbish as they are not really income-generating, but your team will not want to use grotty toilets or a kitchen area, when there are so many other offices available with new contemporary facilities.
Something else which helps to reduce the burden of the fit-out cost is the Tenant Installation Allowance
(TI Allowance) offered by most landlords as an incentive to new tenants renting space. We have had a number of clients who think that the entire cost of the fit-out can be covered by the TI allowance, however, this is usually not possible due to the amount of work required versus the size of the TI allowance given. In some cases, if there is just some repainting and minor renovation work required, the TI allowance can cover the cost of all the work required, but this is certainly the exception rather than the norm.
If you’re looking to rent or buy a new office premises, please get in touch so we can do an assessment with you to ascertain your needs, look at your budget, and assist you in preparing a realistic, comprehensive fit-out cost estimate based on the space(s) you’re considering.
Our Service Areas
We operate in the following regions:
- KwaZulu-Natal (Durban, Pietermaritzburg, and surrounds)
- Gauteng (Johannesburg, Pretoria, Centurion, and surrounds)
- Western Cape (Cape Town)
Contact:
- Name: Jayson Anderson
- Company: The Solution Group
- Website: www.thesolutiongroup.co.za
- Phone: 073 708 9989
We trust that this initial overview will better equip you to plan your commercial office fit-out in South Africa.