Insight · 8 min read

London Office Fit-Out Cost Index — Q1 2026

Our Q1 2026 benchmark of London office fit-out costs across 10 commercial zones and 4 tiers, drawn from live project pricing and market comparisons. Costs stable to rising 2–4% year-on-year, with Canary Wharf and City premiums narrowing against inner-zone 2 areas.

Published 2026-04-15Hampstead Renovations Commercial

Headline numbers — Q1 2026

London commercial office fit-out per-sqft costs across the four standard tiers:

TierRangeTypical inclusion
CAT A£60–£95Landlord base-build finish — raised floors, ceiling grid, VRF, emergency lighting
CAT A+£95–£140CAT A plus meeting rooms, kitchen, carpet, paint, basic furniture
CAT B standard£120–£200Full tenant fit-out — partitioning, M&E, joinery, finishes
CAT B premium / HQ£220–£380+Bespoke design, premium finishes, AV, stone, architectural commission

For detailed tier-by-tier breakdowns see the CAT A vs CAT B vs CAT A+ guide.

By zone — premium multipliers

Percentage premium over the inner-zone 2 baseline (Farringdon, King's Cross, Paddington):

ZonePremiumDriver
City of London+15–20%Estate approvals, OoH loading, trading-floor restrictions
Canary Wharf+18–22%CWG loading windows, skip ban, OoH mandatory
Westminster / SW1+10–15%Heritage, listed-building premium, security vetting
Holborn / Midtown+5–10%Legal-building sensitivity, Inns of Court restrictions
Farringdon (post-Elizabeth)+3–6%Modest premium driven by demand uplift
Liverpool Street / Bishopsgate+12–18%Broadgate estate rules, trophy-tower OoH
London Bridge / SE1+8–12%Shard/More London logistics
Paddington+2–5%Modest uplift from Elizabeth line; estate rules manageable
King's Cross+8–12%Argent amenity-culture OoH, contractor approvals
Hammersmith-10 to 0%Wider loading, fewer OoH restrictions

Cost movement — last 4 quarters

Base CAT B standard (£120–£200 per sqft) movement across the last four quarters:

Year-on-year: +3.2% on the midpoint. Below general-construction inflation (4.8% per BCIS all-in index). Driver: competitive contractor market, muted occupier demand in H2 2025.

What's driving cost in 2026

  1. Labour

    Commercial-fit-out trade wages up 4.1% YoY. Electrical and M&E specialists leading. Decorators and carpenters roughly flat.

  2. Materials

    Partitioning and glazing down 1–2% YoY (normalising from 2022–23 spike). Timber and joinery up 2–3%. Lighting (LED fittings) down 3–5% driven by volume.

  3. Logistics

    ULEZ compliance mandatory from April 2024 — small residual cost impact. Waste disposal up 6% YoY (landfill tax + transport).

  4. Compliance

    CDM 2015, BS 7671 Amendment 2, Part L updates all adding marginal cost to design and specification phases.

Occupier impact — buying smarter in 2026

Methodology

Costs drawn from our live commercial project pipeline Q2 2025–Q1 2026 across 47 completed projects totalling 285,000 sqft, supplemented by BCIS and JLL Commercial Fit-Out benchmarks. Zone premiums computed against inner-zone-2 baseline. Year-on-year comparisons adjusted for tier mix.

Services

Full cost breakdowns for each service line: Office Refurbishment, Office Fit-Out, Dilapidations, Maintenance, Partitioning.

FAQs

How are costs changing into Q2 2026?

We expect flat to +1% movement in Q2. Labour stable; materials normalising; logistics flat. No major cost disruptions forecast unless energy prices shift.

Why is Canary Wharf more expensive than City?

CWG loading regime is tighter (no skips, enclosed-truck waste, 6am–9am and 6pm–10pm windows), which drives out-of-hours labour premium. Estate approval overhead slightly higher.

Can a tenant negotiate cost below these ranges?

Rarely without trade-off. Below-range pricing typically signals scope gaps, inadequate prelims or reduced contingency. Ranges shown reflect fair market for fully-compliant delivery.

Need commercial expertise on this?

Measured survey and fixed-price quote within 10 working days.