Fit Out Cost Guide 2025 | Retail

Overall Costs Are Facing Increased Upward Pressure However, cost increases are still below their 10-year average increase Monthly YOY Changes Construction Cost Index

25,000

18% 16% 14% 12% 10%

20,000

15,000

8% 6% 4% 2% 0%

10,000

5,000 ENR: Cost index, (1913=100, NSA)

Jan-17

Jan-21

Jan-21

Jan-15

Jan-18

Jan-19

Jan-16

Sep-21

May-21

Jan-22

Jan-22

Jan-23

Jan-25

Jan-23

Jan-24

Jan-24

Jan-20

Jan-20

Sep-22

Sep-23

Sep-24

May-22

May-23

Sep-20

May-24

May-20

Source: Engineering News Record (ENR) (McGraw-Hill) Construction

Building

Common Labor

Skilled Labor

Overall Construction Costs Trend Higher

Rapid increases in construction prices abated through 2024 as the sector returned to normalized increases, which were generally below the 10-year average. However, recent economic uncertainty has begun to press upward on prices. Based on the Engineering News Record (ENR) index, construction costs, which include a common labor component, increased 2.1% YOY as of March 2025. This increase was stronger than the 1.1% increase at year-end 2024 but remained below the 10-year average annual increase of 3.3%. Building cost increases, which include skilled labor, were up 1.8% YOY, relatively flat from the year-end increase of 1.7%, but below the 10-year annual average increase of 4.5%. The labor components of the ENR index show increased price pressure in 2025. As of March 2025, common labor costs are up 2.9% YOY, higher than the year-end 2024 increase of 1.8%, and higher than its 10-year annual average increase of 2%. Costs for skilled labor rose significantly higher in March, increasing 3.7% YOY, much higher than the year-end increase of 1% and its 10-year annual average increase of 2.3%.

Both commodity price and labor cost increases are expected to place upward pressure on overall construction costs in 2025; however, this increase is not expected to reach the price growth levels seen in 2022.

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Retail Fit Out Cost Guide 2025