OFFICE FIT-OUT COST GUIDE 2024
When renovating or constructing a new office, the costs involved can vary widely based on various factors, as listed below:
Corporate Regulations, Policies, and Internal Management Systems:
Regulations will specify several standards for the company's finishes to ensure standardization and global brand recognition.
- Corporate culture and goals
- Standards for well-being and sustainability
- Standards for space and internal operations, including soundproofing
- Brand image, which affects the proportion of materials used as well as their colors
- Standards for materials used for ceilings, walls, and floors
- Standards for office furniture, storage cabinets, and curtains
- Flexibility
Office Location, Building Grade (A, B), and Size:
Offices rented in grade A buildings in central locations will have higher finishing costs due to the following reasons:
- Stringent management in high-grade buildings, requiring additional indirect costs
- Material standards compliance, as high-grade building standards require tenants to meet similar material standards to align with the building's system
- Large space renovation costs, as larger areas incur higher renovation costs due to the investment per square meter, while smaller areas may have higher investment costs per square meter
- Building condition and design suitability
Scope of Work and Complexity:
The more complex the project, with many standards and larger areas, the higher the renovation costs. Large-scale projects require multiple consultants and specialized skills, knowledge, human resources, and materials to execute. Sometimes, companies may need to hire expert consulting firms to manage the project, a model often implemented by large foreign corporations.
Standards and Quality Requirements:
The level of quality and quantity of materials and finishes impacts renovation costs. The more a company uses high-end, sustainable, productive, and aesthetically pleasing products, brands, and services, the higher the costs. Additionally, there may be higher expenses for adjustments, installation, and maintenance of materials and finishes.
Project Completion Time:
If the project is short-term and urgent, the renovation costs will be higher. This is because the company needs to pay for overtime work, urgent orders, and expedited deliveries to meet the completion deadline. Additionally, the company may incur higher costs for disruptions, relocations, and contingencies to minimize the project's impact on business operations.
Renovation Costs for Offices in 2024:
In Hanoi and Ho Chi Minh City, the average renovation cost per square meter ranges from VND 7.5 million to VND 16 million, according to a report by Cushman & Wakefield Vietnam. (The office fit-out cost index in South East Asia is on Page 21, while the average cost at a glance in local metrics index is on Page 23).
For more details of the report "APAC OFFICE FIT-OUT COST GUIDE 2024" by Cusman & Wakefield, CLICK HERE.
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