New York City maintains its position as the most expensive location for commercial space fit-out and all-in costs, with average all-in costs of $345 per square foot (psf) and average fit-out costs at $213 psf for a 30,000-square-foot build, according to third quarter market report from Cushman & Wakefield.

Jersey City follows as the second most costly, with average all-in costs at $295 psf and average fit-out costs at $185 psf. Conversely, Buffalo boasts the lowest average fit-out cost at $143 psf, while Long Island has the lowest average all-in cost at $223 psf. 

Adaptive reuse projects, such as converting office spaces into residential units, are gaining traction. Despite a slight slowdown in backlog, the construction industry remains supported by the significant number of starts initiated in 2022, particularly in the hospitality sector, which is expected to return to pre-pandemic performance levels by 2024.