Guide to Office Refurbishment Costs by City and Scope

Average Office Refurbishment Costs

When planning a commercial office refurbishment, one of the first questions business owners ask is: “How much will it cost?” The answer depends on several factors, including location, scope, and level of finish, but having a benchmark is crucial.

Here’s a general guide to office refurbishment costs in Australia for 2025, based on industry trends and recent project data:

Why These Costs Vary

Several elements influence your final office renovation budget:

• Size of the space: Larger areas may benefit from bulk pricing, but complex configurations can drive costs up.
• Level of finish: High-end materials and custom designs will increase costs significantly.
• State and city: For example, a premium refurbishment in Sydney will typically cost more than a similar project in Adelaide or Perth.

According to recent market insights from major commercial property consultants, cities like Sydney and Melbourne remain the most expensive due to higher labour, material, and leasing costs.

Key Factors That Influence Office Refurbishment Costs

No two office refurbishments are alike. The total cost of refurbishing an office in Australia depends on a variety of factors beyond just size and design preferences. Understanding these variables can help you avoid budget blowouts and make smarter decisions.

Here are the primary cost drivers to consider in your office renovation budget:

1. Size and Layout of the Office
   • More square metres = more materials and labour.
   • Irregular layouts, multi-level offices, or heritage buildings may require custom solutions that increase both complexity and cost.
2. Location
   • Cities like Sydney, Melbourne, and Brisbane typically have higher labour and material costs than regional centres.
   • Access, building restrictions, and delivery logistics in CBDs can also affect pricing.
3. Level of Finish
   • A basic refresh with standard fittings costs much less than a bespoke, high-end corporate design.
   • Modern businesses often opt for mid-tier to premium finishes that reflect their brand, especially in client-facing areas.
4. Services and Infrastructure Upgrades
   • Updating electricals, lighting, HVAC systems, or internet infrastructure can significantly increase your workspace upgrade budget.
   • Buildings with outdated or non-compliant systems may require mandatory upgrades.
5. Furniture and Equipment
   • New ergonomic desks, breakout furniture, and collaborative tech (e.g., smart boards, video conferencing) are often overlooked in initial budgets.
   • Choosing modular or reused furniture can be a cost-effective alternative.
6. Compliance and Permits
   • Costs related to fire safety, accessibility (DDA compliance), and sustainability ratings (e.g., NABERS, Green Star) should be factored in early.
   • Professional certification and approvals can also come with fees and time delays.
7. Business Disruption
   • If your team remains onsite during work, consider staging the refurbishment, which can stretch out project timelines and costs.
   • Alternatively, temporary relocation may be required, incurring short-term rental or logistics fees.

Refurbishment vs Fit-Out: Key Differences

A common point of confusion for many business owners is the difference between an office refurbishment and an office fit-out. While the terms are sometimes used interchangeably, they represent two distinct approaches to commercial workspace transformation, each with different cost implications.

Here’s a quick breakdown:

When to Choose a Refurbishment

• You’re happy with your office location and layout.
• You want to modernise your workspace design and boost productivity.
• Your lease is mid-term, and you’re not relocating soon.
• You need to make the office align with hybrid work trends.

When a Fit-Out Makes Sense

• You’re moving into a new or empty space.
• The current space is outdated or non-compliant.
• Your business needs a customised layout and infrastructure.
• You’re upgrading from a shell space provided by a landlord.

Office Refurbishment Cost Breakdown by City

Office refurbishment costs in Australia can vary significantly depending on your location. Labour rates, supplier availability, local regulations, and even real estate trends all influence pricing.

Below is a city-specific guide to average office refurbishment costs per square metre in 2025.

Key Regional Insights

• Sydney and Melbourne remain Australia’s most expensive cities for commercial refurbishment due to premium real estate, dense urban locations, and high contractor demand.
• Perth and Adelaide offer cost-effective options, especially for companies seeking basic or mid-tier upgrades.
• Brisbane and Canberra are seeing rising demand for sustainable and hybrid-friendly refurbishments.

Hidden and Overlooked Office Refurbishment Costs

Budgeting for an office refurbishment in Australia isn’t just about paint, desks, and carpets. Many projects go over budget not because of significant changes, but because of overlooked or underestimated costs.

Here are the most common hidden expenses to watch for when planning your commercial office renovation:

1. Make-Good Clauses in Leases

Most commercial leases in Australia include a make-good clause, requiring tenants to return the office to its original condition before vacating. This may include:

• Removing fit-outs
• Repainting
• Reinstating walls, flooring, or lighting

2. IT and Tech Infrastructure

Modern workspaces need modern tech. Costs may include:

• Structured cabling
• Wireless access points
• AV equipment for meeting rooms
• Server room fit-out or relocation

While easy to overlook, these upgrades can add tens of thousands of dollars to your office upgrade expenses.

3. Building Code Compliance

Australian building standards are strict, especially in areas like:

• Fire safety (sprinklers, alarms, egress)
• DDA (Disability Discrimination Act) accessibility
• Energy efficiency and air quality

Missing these during works can lead to costly retrofits or fines.

4. Professional Fees

Depending on scope and building type, you may need:

• Architects or interior designers
• Certifiers
• Engineers (structural, mechanical, electrical)
• Project managers

These fees can add 10–20% to your total project cost.

5. Temporary Relocation or Business Disruption

If work can’t be staged during business hours, you may need to:

• Relocate your team temporarily
• Allow for remote work
• Absorb productivity loss

Don’t overlook indirect downtime costs like reduced productivity and delayed deliverables.

6. Contingency Budget

Even with excellent planning, surprises happen. Set aside 10–15% of your total budget for:

• Hidden structural issues
• Delays due to approvals or materials
• Additional fittings or design changes

Office Refurbishment ROI: Is It Worth the Investment?

Absolutely. A thoughtfully planned office refurbishment is more than just a cosmetic upgrade; it’s a strategic investment that pays off in multiple ways.

Here’s how your workspace upgrade can deliver measurable returns for your business:

1. Boosts Employee Productivity and Satisfaction

Modern, well-designed spaces improve:

• Natural light exposure
• Acoustics and focus zones
• Collaboration areas
• Ergonomics and wellbeing

According to workplace design studies (e.g. Gensler, Leesman Index), modern refurbishments can boost productivity by up to 20% and employee satisfaction by 30%+.

2. Enhances Brand Perception

Your office is more than a workspace; it’s a statement. A renovated space can:

• Reflect your brand identity
• Impress clients and investors
• Attract top talent in a competitive market

Think of it as your physical brand touchpoint.

3. Improves Space Efficiency

Many businesses find that after refurbishment:

• They use less space more effectively
• They can downsize or sublease unused areas
• They align their office with hybrid or remote-first strategies

This can result in significant long-term savings on commercial leases.

4. Reduces Energy Costs and Increases Sustainability

An office refurbishment is the perfect time to:

• Upgrade lighting to LED
• Improve HVAC efficiency
• Install innovative systems for power, occupancy, or temperature

These energy-efficient office upgrades reduce your carbon footprint and can cut utility costs by 10–30% annually.

5. Increases Property or Lease Value

If you own your commercial space:

• A modernised, compliant office increases resale value
• Refurbishments can contribute to higher leasing rates or faster sales

If you’re leasing:

• A functional, updated space may improve negotiation power
• Planned upgrades can reduce make-good costs

Cost-Saving Strategies for Office Refurbishment

Refurbishing your office doesn’t have to mean breaking the bank. With thoughtful planning, clear priorities, and the right partners, you can achieve a high-impact office transformation while staying within budget.

Here are some practical ways to reduce your office refurbishment costs without compromising on quality:

1. Reuse and Repurpose Existing Assets

• Repaint or reupholster furniture instead of buying new
• Retain core layout if it’s functional
• Reuse office partitions, workstations, or lighting fixtures where possible

Sustainability bonus: Reduces landfill waste and carbon footprint.

2. Go Modular and Flexible

• Use modular furniture systems that adapt to changing needs
• Choose mobile partitions or multi-purpose rooms to future-proof your layout
• Select finishes that are durable and easy to maintain

This approach minimises future renovation costs.

3. Phase the Refurbishment

• Break the project into manageable stages based on department or floor
• Reduce business disruption and avoid relocation costs
• Align stages with budget cycles or cash-flow planning

Phased rollouts offer more financial flexibility.

4. Design with Hybrid Work in Mind

• Reduce total workstation numbers based on hybrid schedules
• Emphasise hot-desking, collaboration zones, and breakout spaces
• Shrink your physical footprint while boosting function

Fewer desks result in lower fit-out costs and reduced space requirements.

5. Work with Local Suppliers and Contractors

• Sourcing materials locally reduces shipping and delivery delays
• Local trades often have more cost-efficient pricing structures
• Faster turnaround times mean fewer labour hours

Ask your refurbishment partner about their local supplier network.

6. Prioritise ROI-Driven Improvements

• Focus on upgrades that offer measurable value: lighting, acoustics, layout
• Invest in tech and infrastructure that supports productivity
• Postpone aesthetic upgrades that don’t affect function

Spend where it counts and save where it doesn’t.

Office Refurbishment Timeline

One of the most common questions we get at Stemar Group is: “How long will my office refurbishment take?”

The answer depends on the size of your space, the complexity of the work, and whether you plan to stay operational during the upgrade. However, understanding a typical office refurbishment timeline will help you prepare better and reduce disruption to your business.

Factors That May Affect the Timeline

Key variables that can accelerate or slow delivery:

• Size and complexity of the refurbishment
• Phased vs complete execution (especially in live environments)
• Lead times for custom materials or imported furniture
• Holiday periods or council delays in approvals
• Landlord access restrictions or building hours

Staying Operational During Refurbishment

Want to avoid downtime? We offer phased refurbishment solutions that allow your teams to continue working while upgrades are completed one area at a time.

Benefits

• No temporary relocation needed
• Less disruption to operations
• Cash flow flexibility is staged over quarters

Want to Know What Your Office Refurbishment Will Cost?

If you’re planning an office refurbishment in Australia and want a reliable cost estimate tailored to your needs, we’re here to help.

At Stemar Group, we don’t just guess, we guide. Our expert team will assess your workspace layout, refurbishment priorities, and location-specific factors to deliver a precise, itemised estimate with full cost transparency.

What You’ll Receive

• A customised cost breakdown based on your sqm, scope, and finish level
• Guidance on budget allocation and potential savings
• Advice on design options to match your brand and workflow
• An optional site visit for more accurate quoting (available in major cities)