An office renovation in Vancouver costs $100 to $300 per square foot. A basic open-plan fit-out over a warm shell runs $100 to $150, a mid-specification office with glass partitions and full AV rough-in runs $150 to $220, and a high-specification corporate build runs $220 to $300. On a 5,000 square foot floor that is $500,000 to $1.5 million, and how much of it the tenant actually pays depends on the improvement allowance negotiated into the lease.
What Is Included in an Office Renovation
The scope divides into base infrastructure and finishes, and the base building condition decides how much of the first category is already done.
Demolition removes existing partitions, suspended ceilings, carpet, and finishes, salvaging reusable electrical and mechanical components where the condition warrants. Partition work covers both drywall assemblies and glass partition systems. Mechanical and electrical cover HVAC distribution to the new layout, lighting, power, and data conduit. AV rough-in covers the conduit, power, structural backing, and outlet locations that support the audiovisual system. Finishes cover flooring, ceiling, millwork, and paint.
The distinction that matters most in a lease negotiation is warm shell versus cold shell. A warm shell has HVAC, electrical panels, plumbing to the unit, and sometimes a basic lighting grid, with no partitions or finishes. A cold shell is bare concrete and structure with nothing beyond base building mains. Fitting out a warm shell costs $80 to $150 per square foot less than a cold shell at the same specification, because the primary mechanical and electrical infrastructure already exists.
The Tenant Improvement Allowance
A tenant improvement allowance is a landlord contribution toward fitting out leased space. It is applied against the total cost of the improvement scope and the tenant pays the difference.
In Vancouver, Class A office buildings typically offer $40 to $75 per square foot. Class B buildings typically offer $20 to $45. Second-generation space, meaning space being refitted after a previous tenant rather than built from a shell, generally attracts a lower allowance because part of the improvement already exists.
Put those numbers next to the construction cost and the arithmetic is unavoidable. A $75 per square foot allowance against a $150 per square foot mid-specification fit-out leaves half the cost with the tenant. An allowance that appeared generous in the term sheet frequently covers a basic fit-out and no more.
| Building class | Typical allowance | What it covers at a $150 per sq ft fit-out |
|---|---|---|
| Class A | $40 to $75 per sq ft | Roughly a quarter to a half of the cost |
| Class B | $20 to $45 per sq ft | Roughly a seventh to a third of the cost |
| Second-generation space | Lower, negotiated case by case | Depends heavily on what existing work is reusable |
Allowances are usually drawn in stages tied to milestones: permit issuance, substantial completion, and final occupancy. Draws are documented with progress reports and site photographs, and managing that draw schedule is project management work that belongs to someone specific rather than to nobody.
Two things are worth confirming before a lease is signed. The first is the total construction cost of the space you actually intend to build, priced rather than estimated, so the gap between allowance and cost is a known number. The second is the base building delivery condition, written into the lease, because "warm shell" means different things to different landlords and the difference is worth $80 to $150 per square foot.
Second-generation space needs its own caution. Existing partitioning, electrical, and mechanical may be reusable with modifications, which genuinely lowers cost per square foot. The condition of those systems varies enormously, and a pre-construction walk-through documents what is actually reusable before the budget assigns savings that may not materialize.
The Permit Process
The City of Vancouver processes a standard office fit-out inside an existing office occupancy as a Class B permit, with plan review running 4 to 8 weeks. A change of occupancy, converting retail or storage into office space, triggers a Class A permit and a full code review, adding 6 to 12 weeks.
A permit is required for most partition reconfigurations. The trigger is whether the work affects fire separations, HVAC distribution, electrical circuits, or means of egress from any area. Painting, replacing carpet, and installing furniture generally do not require one. The permit classification and review timeline are confirmed at a pre-application meeting rather than assumed.
WorkSafeBC compliance applies to every commercial jobsite. The prime contractor holds the site safety plan and manages compliance documentation for all subcontractors, which becomes significant in an occupied building where construction and staff share a floor.
Cost Breakdown
| Tier | Range | What it covers |
|---|---|---|
| Basic open-plan fit-out | $100 to $150 per sq ft | Carpet tile, paint, lighting, HVAC distribution, data conduit, kitchenette. Warm shell assumed, minimal enclosed offices. |
| Mid-specification office | $150 to $220 per sq ft | Glass partition offices and focus pods, acoustic ceiling, improved lighting, full AV rough-in, reception millwork, boardroom finishes. |
| High-specification corporate | $220 to $300 per sq ft | Full glass partition system, custom millwork, premium flooring zones, branded reception, full AV integration rough-in, after-hours delivery. |
Two factors move a project inside those tiers more than finish selection does. After-hours delivery adds 15 to 25 percent to labour cost, and base building condition changes the starting point by as much as $150 per square foot.
The layout ratio drives the rest. The post-2020 brief in Metro Vancouver has settled around 60 to 70 percent open workstations and 30 to 40 percent enclosed space, with law firms and financial services keeping more private offices than technology and creative firms. Enclosed space costs more per square foot than open space, so the ratio is a budget decision as much as a workplace one.
Acoustic performance is where specification quietly becomes expensive. A standard steel stud drywall partition reaches STC 35 to 40. A decoupled assembly with acoustic batt reaches STC 45 to 50. A single-glazed glass partition sits at STC 38 to 42, and a double-glazed partition at STC 48 to 52. Boardrooms and senior offices in most Vancouver law and finance fit-outs need the double-glazed figure, and the target for each zone is set before partition drawings go to permit.
AV rough-in is the item that cannot be added later. Conduit paths through glass partition frames and ceiling plenums do not exist once the partitions are built, so every glass office and focus pod gets its conduit and outlet stub-out during rough-in. The AV rough-in drawing has to exist before framing starts.
Timeline
An open-plan fit-out of 3,000 to 5,000 square feet runs 6 to 10 weeks on site. A higher-specification renovation with glass partitions, custom millwork, and AV integration runs 10 to 16 weeks. Add 4 to 8 weeks for the City permit before construction begins.
Most Metro Vancouver office renovations above 5,000 square feet in occupied buildings are delivered in three to four phases over 8 to 16 weeks. The work runs after hours, typically 6 PM to 6 AM on weekdays and from 7 AM on weekends, with noise-generating work restricted to those windows by the building's house rules. Each phase is sealed from the occupied zone with dust barriers and temporary fire separations, and egress from occupied areas stays clear at all times.
After-hours delivery extends the calendar without extending total construction hours. It redistributes them, and it costs 15 to 25 percent more in labour to do so.
Freight elevator booking adds its own coordination. Most Vancouver high-rise office buildings restrict freight elevator use to defined windows, limit load weights, and require 48 to 72 hours notice. Large items such as glass panels and millwork are sequenced to arrive inside booked windows, and staging areas on each floor are confirmed with the property manager before delivery.
Lease term is the last variable, and it belongs in the cost conversation rather than beside it. Amortized across a five-year term, a $150 per square foot fit-out is a materially different annual number than the same fit-out across a ten-year term, and landlords generally offer larger allowances against longer commitments. Where the space is being fitted out for a team whose size is uncertain, the cheaper decision is frequently a lower specification with conduit and capacity roughed in for a later phase, rather than a higher specification built once for a headcount that has not arrived.
Sustainability Options
Many Class A office buildings in Vancouver are LEED Gold or Platinum certified, and tenant improvements in those buildings can be subject to requirements supporting the building's certification: low-VOC paint and adhesives, certified wood products, indoor air quality management during construction, and waste diversion documentation. The additional material cost is typically $2 to $5 per square foot over standard specification.
Whether any rebate or incentive program applies to a given fit-out depends on the building, the utility, and the program terms in force at the time. That is confirmed with the property manager and the utility before the estimate is issued rather than assumed into a budget.
The full office scope, including phased delivery in occupied buildings, is on the office renovation service page. The broader commercial permit path is on the commercial renovation page, and the allowance and lease-side mechanics are covered further on the tenant improvement page.