Fit Out Cost Guide 2025 | Retail

• Softening economic activity has resulted in slower retail leasing and negative absorption.

• Recent tariff policy announcements have already resulted in increased pricing as contractors prepare for higher costs.

• The retail construction pipeline remains constrained; therefore, the recent uptick in the vacancy rate will not change the market balance in the near term. • In-line store fit out costs average $155 per square foot (psf) nationally, up 4% year-over year (YOY). Fit outs are costliest in Northern California, averaging $211 psf, and most cost effective in the Southeast, averaging $117 psf.

• Rising commodity prices and labor costs are applying upward pressure to overall

construction costs. However, price increases are expected to be slower relative to the sharp rise seen in 2022.

• Project timelines have stabilized, indicating that general contractors (GCs) have become adept at managing extended schedules. • Based on C&W’s General Contractor Sentiment Survey, GCs expect to navigate higher costs for both materials and labor in 2025.

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Retail Fit Out Cost Guide 2025