Fit Out Cost Guide 2025 | Retail

Among these categories, Mechanical accounted for the largest share at 21% of total project costs, followed by Carpentry, Doors, & Windows at 17% and General Conditions at 16%. Project overhead averaged 9% of total costs across markets.

Mechanical expenses increased 17% from the prior year, driven by a confluence of factors including sustained labor constraints, elevated material costs and evolving regulatory requirements. In particular, recent changes implemented by the U.S. Environmental Protection Agency have initiated the phaseout of R-410A, the industry-standard refrigerant, in favor of alternatives with lower global warming potential. This transition has narrowed the market for legacy R-410A equipment and forced production changes. Manufacturers are incurring additional costs related to redesign, compliance, and enhanced safety standards. According to Colony Plumbing 3 , heating and cooling the new HVAC systems generally cost a 10%-25% premium compared to their R-410A predecessor.

Fit Out Costs by Segment and Market Average costs, per square foot

Segment Cost by Market

Segment Cost Composition by Market

NorCal Pacific NW Southwest SoCal NYC MSA

NorCal Pacific NW Southwest SoCal NYC MSA

Denver MSA Chicago MSA Texas Mountain New England Mid-Atlantic Upper MW Appalachia Midwest Southeast

Denver MSA Chicago MSA Texas Mountain New England Mid-Atlantic Upper MW Appalachia Midwest Southeast

$0

$50

$100

$150

$200

$250

0%

20%

40%

60%

80%

100%

Mechanical

Carpentry, Doors, & Windows General Conditions Electrical

Project Overhead & Profit Finishes

Ceiling

Existing Conditions

Specialties

General Requirements

Concrete

Misc. Items

Source: Cushman & Wakefield Project & Development Services, Note: The Mountain region excludes Denver

3 https://colonyheating.com/2025/01/21/r-410a-phase-out-new-r454b-mandate/

21

Retail Fit Out Cost Guide 2025