The per-square-metre cost is the most common benchmark tenants use when budgeting for an office fitout, and it is also the most commonly misunderstood. A round number quoted in a magazine article or a property report can seem helpful, but without understanding what is included in that number, what grade of fitout it represents, and how the variables specific to your project affect it, a per-square-metre benchmark can be as misleading as it is informative.
For commercial office fitouts in Sydney, the most recent published benchmark puts the average at about $2,599 per square metre, according to Cushman & Wakefield’s Office Fit Out Costs in Australia 2026 (opens in a new tab). Treat that as a market average, not a price for your floor. Small tenancies, older buildings and heavily partitioned layouts routinely land above it, while simple open-plan work in a good building can land well below. We don’t quote a rate before we’ve seen the space, and the sections below show why.
What Per-Square-Metre Cost Actually Measures
Per-square-metre cost divides the total project cost by the net lettable area of the tenancy. It is a simple calculation, but the result depends entirely on what is included in the numerator. A figure that includes only construction costs will be significantly lower than one that includes design fees, compliance costs, furniture, IT, and relocation. When tenants compare their quote to a published benchmark, they often discover the comparison is not like-for-like because the inclusions differ.
For the purposes of meaningful comparison, the per-square-metre cost should ideally include all construction costs (demolition, partitioning, ceilings, flooring, painting, joinery, mechanical, electrical, fire, and data), design and documentation fees, compliance and certification costs, and project management. Furniture, IT equipment, and relocation are usually excluded from the construction cost comparison but should be budgeted separately.
Tenants who receive a fitout quote should clarify exactly what is included and what is excluded before comparing the per-square-metre cost to any benchmark. A quote that appears low on a per-square-metre basis may simply be excluding items that are included in the benchmark figure, and the true cost will only become apparent once those items are added back.
How Your Fitout Grade Compares to the Sydney Average
The Cushman & Wakefield guide places Sydney close to Brisbane ($2,615) and Melbourne ($2,535), with Canberra the highest of the major cities at $2,938 per square metre. Those are averages, so any single project can sit well either side of them. Before comparing a quote to the figure, check what the quote includes, because published benchmarks and contractor quotes rarely count exactly the same items.
A basic fitout that involves minimal partitioning, standard-grade finishes, simple electrical work, and no specialist systems typically lands below the published average. This grade of fitout suits tenancies where the layout is predominantly open plan, the finishes are functional rather than premium, and the base building condition is good. It represents the minimum investment needed to create a presentable, functional office.
A mid-range fitout with a mix of glass and plasterboard partitioning, good-quality finishes, a well-fitted kitchen, meeting rooms with adequate AV provision, and properly coordinated mechanical and electrical services tends to land around the average. This is the most common grade for professional services offices, mid-sized businesses, and tenancies where the space needs to project competence without being extravagant.
A premium fitout with high-specification glass partitions, custom joinery, premium flooring, feature lighting, specialist AV integration, and bespoke finishes usually lands above it. This grade is typical for corporate headquarters, law firms, financial services offices, and client-facing businesses where the fitout is a direct expression of the brand.
The spread between these grades is substantial, and most projects sit somewhere along the spectrum rather than neatly in one bracket. A tenancy might have premium finishes in the reception and meeting rooms but standard finishes in the open-plan workspace, producing a blended per-square-metre cost that falls between the mid-range and premium benchmarks.
Why Small Offices Have Higher Per-Square-Metre Costs
Tenants fitting out smaller offices, typically under 200 square metres, often find their per-square-metre cost sits above the published benchmarks. This is not because they are being overcharged but because certain costs are relatively fixed regardless of project size and therefore represent a larger proportion of the total on smaller projects.
Design fees, compliance fees, project management overhead, and the cost of mobilising trades to site do not scale down proportionally with area. A building certifier’s fee for reviewing a 100 square metre fitout is not dramatically different from the fee for a 500 square metre project. The time required to coordinate trades, manage the building management relationship, and administer the project is similar for small and medium projects. These fixed costs, when divided by a smaller area, push the per-square-metre figure upward.
Smaller offices also tend to have a higher ratio of enclosed space to open space, which increases the partitioning density and the associated services costs. A 10 to 20 person office that includes two meeting rooms, a kitchen, a phone room, and a server alcove may have as much partitioning per square metre as a much larger project with a more open layout.
How Base Building Condition Shifts the Range
The condition of the base building can shift the per-square-metre cost significantly, particularly in older Sydney buildings. A tenancy in a well-maintained building with adequate services, modern fire systems, and a clean shell will sit at the lower end of the range for its fitout grade. The same design in an older building that requires electrical upgrades, mechanical modifications, and fire system reconfiguration will sit at the higher end.
This is one of the reasons why published benchmarks need to be interpreted carefully. A per-square-metre figure that applies to a new A-grade building in Barangaroo does not apply to a 1970s office tower in the CBD where the base building condition adds a layer of cost that the benchmark does not account for. Tenants taking space in older buildings should expect the per-square-metre cost to sit above standard benchmarks and should budget accordingly.
The Impact of Partitioning Density
The amount and type of partitioning is the single strongest variable within the construction scope, and it has a direct impact on the per-square-metre cost. An open-plan office with only a few enclosed meeting rooms requires much less partitioning than an office divided into individual offices, multiple meeting rooms, and specialist spaces.
Each enclosed room requires not just the partition walls themselves but also doors, door hardware, additional electrical circuits, fire detection adjustments, and potentially mechanical ventilation modifications. The cumulative effect of extensive partitioning can add a meaningful amount to the per-square-metre cost, and tenants who are surprised by their quote often find that the number and type of enclosed rooms is the primary driver.
The choice between glass and plasterboard partitions also affects the per-square-metre cost. Glass partitions generally carry a higher material cost per linear metre, but they may reduce the need for additional lighting in internal rooms and can create a sense of openness that allows the space to function well at a smaller overall area. The choice should be driven by the functional requirements of each space rather than by cost alone.
What the Per-Square-Metre Cost Does Not Tell You
A per-square-metre cost is useful as a budgeting tool and a rough comparison metric, but it does not tell you whether the fitout will perform well for the business, whether the materials are appropriate for the use case, or whether the project is being managed effectively. Two projects with identical per-square-metre costs can deliver very different outcomes if one is well-designed and well-managed while the other is not.
The per-square-metre cost also does not capture the lifecycle cost of the fitout. A cheaper fitout that uses lower-grade materials may cost less per square metre upfront but may require earlier replacement, more maintenance, and higher make good costs at lease end. A slightly more expensive fitout that uses durable, commercial-grade materials may deliver better value over the lease term even though the initial per-square-metre cost is higher.
Tenants should use per-square-metre cost as one input into the budgeting process rather than the sole measure of value. The more important questions are whether the fitout meets the business requirements, whether the budget covers the full scope including compliance and professional fees, and whether the fitout company has the capability to deliver the project to the expected standard.
Getting an Accurate Estimate for Your Project
Published benchmarks provide a starting point, but the only way to get an accurate per-square-metre cost for a specific project is to have the scope assessed by a fitout company that understands the building, the brief, and the local market. An indicative estimate based on a site inspection and a brief description of the requirements will be substantially more accurate than a generic benchmark, and it provides a realistic foundation for budgeting before design work begins.
The scoping conversation should cover the base building condition, the partitioning density, the standard of finish, any specialist requirements, and the compliance pathway. With these inputs, an experienced fitout company can provide a per-square-metre range that is specific to the project and includes all the foreseeable cost elements.
If you want a realistic per-square-metre estimate for your office fitout based on the actual scope and conditions of your project, we can assess the space and provide a detailed cost indication before you commit to design.
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