The Ultimate Guide to Office Construction Costs in Ontario & Canada (Per Square Foot)
The Canadian real estate market is dynamic, and for businesses looking to expand or establish a new presence, understanding the cost of office construction is a critical strategic step. As a coast-to-coast leader in construction with deep roots in Ontario, HKC Construction helps businesses navigate these complexities.
In this comprehensive guide, we break down the cost of office space construction across Canada, providing valuable insights for business leaders and investors making crucial decisions about their physical footprint.
1. Understanding the Baseline Cost to Build Your Office Space
Before looking at specific cities, it's important to understand that costs vary significantly based on the scope and quality of the project. We can group typical office projects into several tiers.
Basic Tenant Fit-Out: For a new, empty commercial space ("cold shell"), a basic fit-out includes essentials like standard-grade carpeting, paint, lighting, and simple kitchen/breakroom fixtures. This is the most economical approach to making a space functional.
Mid-Range Tenant Improvement (TI): This is the most common type of office build. It features higher-quality materials, more extensive partitioning for private offices and meeting rooms, glass walls, upgraded electrical and data cabling for higher density, and more sophisticated millwork in reception and common areas.
High-End or Custom Construction: A flagship office requires a significant investment in premium and bespoke materials. This can include stone reception desks, architectural wood features, integrated advanced A/V systems, and complex, unique designs that strongly reflect a brand's identity.
Note: The costs for these fit-outs are separate from the "base build" cost, which is the expense of constructing the building's shell and core from the ground up. As you will see in the detailed guide below, base-build costs are significantly higher.
While general national averages for fit-outs can start around $150 per square foot, costs in major Canadian metropolitan areas are considerably higher due to demand for labor and materials. The following Q3 2025 cost guide provides a more detailed, location-specific breakdown for both base-build and tenant improvement projects.
Office Sector Construction Cost Guide (Q3 2025)
The office sector is segmented by the complexity of the structure (typology/height) and the quality of the tenant installation (TI). Costs below represent physical construction only and exclude soft costs (e.g., permits, financing, legal fees) and owner-supplied FF&E (Furniture, Fixtures, and Equipment). Fit-out costs are highly sensitive to the mechanical requirements of the tenant density and technology integration.
Office Sector Construction Cost Guide (Q3 2025) - CAD per Square Foot (Shell & Core / Fit-Out Only)
| City/Region | Project Scope/Finish Level | Typology & Scale | Low Range (CAD/psf) | High Range (CAD/psf) | Key Reference |
|---|---|---|---|---|---|
| Toronto / GTA | Prime New Build (Shell & Core) | High-Rise (>15 Stories) | 400 | 850 | 3 |
| Toronto / GTA | Secondary New Build (Shell & Core) | Mid-Rise (5-15 Stories) | 260 | 360 | 3 |
| Toronto / GTA | Standard Tenant Improvement (TI) | Physical Fit-Out Only (Avg Quality) | 210 | 300 | 4 |
| Calgary | Prime New Build (Shell & Core) | Mid-Rise / High-Rise | 295 | 440 | 3 |
| Calgary | Standard Tenant Improvement (TI) | Physical Fit-Out Only (Avg Quality) | 146 | 250 | 4 |
| Vancouver | Standard Tenant Improvement (TI) | Physical Fit-Out Only (Avg Quality) | 180 | 280 | 10 |
| Edmonton | Secondary New Build (Estimated) | Mid-Rise | 270 | 400 | Interpolated 4 |
| Secondary GTA CMAs | Secondary New Build (Estimated) | Low-Rise / Mid-Rise | 240 | 350 | Interpolated |
| London, ON | Secondary New Build (Estimated) | Low-Rise / Mid-Rise | 265 | 370 | Interpolated 6 |
Ready to Estimate Your Office Build?
You've seen how costs vary by city. For a high-level budget estimate based on your project's specific details, visit our Class D Cost Calculator.
Visit the Free Calculator2. Key Factors That Drive Office Construction Costs
The baseline figures above are just a starting point. The final cost is influenced by these critical factors:
Location: Urban centres like Toronto have higher costs due to land value, logistics, and demand compared to smaller communities.
Labor Costs: The availability and wages of skilled tradespeople vary significantly by region. As a company with a vast network across Ontario and beyond, we ensure your project is staffed with top-tier, competitive talent.
Materials & Supplies: The cost of steel, concrete, glass, and interior finishes fluctuates with market demand. Our established supplier relationships allow us to source premium materials at optimal prices.
Regulations & Permits: Every municipality has unique permit requirements and building codes. Our expert team manages this entire process, ensuring compliance and preventing costly delays.
Design & Complexity: Ambitious architectural designs, unique structural elements, or state-of-the-art integrated technology will require specialized labor and materials, influencing the final cost.
Infrastructure & Site Accessibility: A site with ready access to utilities and transportation streamlines the construction process, while challenging or remote sites may incur higher logistical costs.
3. Breaking Down Interior Construction Costs
Beyond the structure itself, the interior is where your office comes to life. Key budget items include:
Electrical & Lighting: Proper lighting has a proven impact on employee productivity. Your budget must account for task lighting, ambient lighting, data cabling, and sufficient power for all workstations and equipment.
Walls & Millwork: A standard partition wall is the baseline, but costs increase with glass partitions, soundproofing, and custom millwork for reception areas, kitchens, and storage.
Flooring: Options range from cost-effective commercial-grade carpet and vinyl tile (starting around
5−7 per sq. ft. installed) to polished concrete or premium hardwood for a more modern, upscale feel.
HVAC & Fire Protection: These essential systems are non-negotiable for employee comfort and safety and must be properly budgeted for in any new build or major renovation.
4. The Value of Professional Design & Planning
Engaging a design professional or a full-service design-build firm like HKC Construction early is a critical investment. Architects and designers save you money in the long run by optimizing space, ensuring compliance with building codes and accessibility standards, and sourcing the right materials for your budget. This expertise prevents costly revisions and allows you to focus on your business goals.
HKC Pro Tip: Ask About Tenant Improvement (TI) Allowances
When leasing a space, many landlords offer a "Tenant Improvement Allowance" a contribution towards your renovation costs. While it may only cover a portion of the total, it's a significant factor. Before signing a lease, have HKC Construction assess the space with you. We can identify potential issues and opportunities that can strengthen your negotiation and save you money.
Partnering with HKC Construction for Your Office Project
Choosing the right city and the right space is a major business decision. A new office is an exciting step forward, and having a clear understanding of the costs is the first step to success.
Whether you are building from the ground up or renovating an existing space in Ontario or across the country, HKC Construction is your dedicated partner. We bring transparency, expertise, and a commitment to quality to every project.
Interested in building or renovating your office space? Contact the experts at HKC Construction to get started.
