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CBRE: Law Firms’ Fit-Out Costs Rising Faster in 2025
Even as law firms have become one of the most active groups of office occupiers, they face rising costs. Law firms’ costs for fitting out their offices increased an average of 7% this year, surpassing the past two years due to rising prices for construction materials and labor, according to a new report from CBRE’s Law Firm Practice Group and Turner & Townsend.
Analysis of fit-out costs for law offices in 24 U.S. and Canadian markets found year-over-year increases ranging from 15% in Washington, DC and San Francisco to 5% in Austin, Miami and Vancouver. The national average increase of 7% this year comes after gains of 5% in 2024 and 6% in 2023.
Among the factors accelerating cost increases are labor shortages in certain markets and higher material costs due to tariffs. In addition, fit-outs have gotten more expensive because of greater use of glass and better-quality materials and the prevalence of more social spaces such as cafes and tech-equipped conference rooms.
“Even firms that are reducing their office footprints still have prioritized these types of spaces and amenities,” said Shane Sweeney of Turner & Townsend, a majority-owned subsidiary of CBRE. “For some, a smaller, more efficient space in a well-located, top-quality building with great amenities is the ideal outcome.”
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