According to JLL’s Australia Fit-Out Cost Guide 2022/2023 report, organisations throughout Australia, are paying more to fit out their offices, as inflation and supply chain disruption continue to have an impact. Nevertheless, the cost of an office fit-out in Perth has some surprising results.  

The average fit-out cost in Australia is $2,662 per square metre, a 14.84 per cent increase year-on-year. In Perth the average cost of a fit-out is $2,552 per square metre, depending on the complexity and customisation of the project.

Sydney is the most expensive city to undertake a fit-out in the country, at $2,765, closely followed by Canberra ($2,761) and Adelaide ($2,703), with Melbourne ($2,676) and Brisbane ($2,554) trailing behind.

Across the country, average prices ranged from $1,997 per square metre for a base specification open floor plan with no enclosed offices, to $4,624 per square metre for a high specification traditional office. Builders’ labour accounts for the highest proportion (43%) of fit-out costs, while mechanical and electrical work remain the second largest component of costs (26%).

JLL’s State Manager, Project and Development Services, Nichola Hodge said, “While there is no one-size-fits-all answer to how much an office fit-out will cost, factors to be considered when planning a new fit out or renovation are location, size of the tenancy, complexity of the design, IT/AV requirements, acoustics, material selections and long lead times that affect program and sustainable selections which may have larger capital cost but lower operational costs.”

The report indicates the issues impacting the cost of an office fit include geopolitical conflicts and extensive international lock downs due to COVID-19. Extreme weather conditions have also impacted the production of paints, glass, timber, laminates, joinery and steel, along with a shortage of containers continues to affect shipping times and costs.

“Perth fared well during the pandemic experiencing positive internal migration, along with Construction classified as “essential workers” which enabled the industry to keep up with demand. However, the availability of skilled and semi-skilled labour continues to be a challenge and the shortage of skills is driving up labour costs. The international recruitment and re-training initiatives by the West Australian Government will hopefully help to backfill the shortfall in the mid-term,” said Ms Hodge.

Despite the increases to supply chain, labour and material costs and significant inflation pressures impacting fitout costs, JLL Research expects businesses will continue to invest in better quality, sustainable and employee-focused workplaces.

JLL’s Work Dynamics Lead - WA, Adam Edmunds said “The way people behave in the workplace, how our clients view their offices, and how buildings are used are all changing quickly. We have witnessed ongoing technological investment to promote the rapid adoption of flexible and dynamic working. As our clients invest in programmes to foster collaboration, entice and retain talent, and improve physical and mental health and wellness, these trends reflect a reimagining of the function of the workplace. Goals for environmental sustainability are also strengthened by investments in high-quality space.”

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