Commercial Interior Design & Renovation Cost
Cost per Square Foot and Other Considerations
Published: November 2017 // Updated: March 2024
Developing a Working Budget for Your Design
Coco Chanel once said that you should take one thing off before leaving the house. She was mostly making a point about a well-edited narrative, and like much of Chanel, this mantra (too) proves as immortal as it is universal.
My philosophy regarding all matters of design focuses on editing: start with every idea and plan you’ve got, and then throw most of them away. Be organized. Keep the ones worth keeping. And, as a beloved professor in architecture school taught me: no one knows what you left on your desk; it doesn’t matter.
The First Cost Factor: Your Office Design Plan
How is editing relevant to office design, renovation cost, and commercial interior design in general? Design, like the rest of the universe, starts with a plan. A well-edited plan. Here’s what you need:
Who is your customer? Know who you’re building your office for. Is it your employees? Your clients? Your investors?
What is the goal?
What is your budget?
How much time do we have?
Now that you have a plan, you can start to budget.
Planning & Budgeting
Cost of Office Renovation
Before you see a place, meet with your broker, CFO, or designer, figure out what you need. Not what you want to need. Here’s how:
Plan for your real team, and your immediate growth. We’re not building for the growth you’re pitching to your board or investors. Here, projection costs money. If your company truly grows ten-fold in the next 18 months, you’ll have plenty of cash to throw at the not enough chairs problem then. But for the time being, the multiplier counts.
Figure your costs. Use this spreadsheet for reference as your commercial renovation cost calculator, and make one for yourself. It takes 20 minutes.
Determine space needs. For every employee you’re building for, you’ll need to allocate 100–150sq. ft. of space (the former for more traditional offices, the latter for newer/techier spaces which prioritize breakout spaces, phone booths, lounges. Younger offices tend to lean towards offering about 50% of total square footage towards communal space. If you’re in SF or NYC, every square foot counts, so count them.
On the lower end, you’ll spend $1500 per employee for furnishings and decor. A mid-range project, where build-outs are involved typically spend between $7,000-$10,000/person.
Size Matters: Commercial Renovation Cost by Square Foot
How Scale Impacts Your Commercial Renovation Project
There are different commercial renovation cost considerations to keep in mind based on the scale of your New York City commercial space when undertaking an interior design and remodel project. Generally, they fit into three categories by office scale:
Flatiron office interior design for a fast-growing company, by Mammoth Projects
The scale of your interior design project relates to its size. Not to be confused with the concept of proportion in interior design, or the scope of the project, a project’s scale is a major factor in determining its budget and timeline, as well as what kind of professionals you need to hire, such as an interior architecture or interior design firm, or both.
Commercial offices in New York City and elsewhere come in many different sizes, from spaces for solo practitioners and a handful of employees to corporate headquarters that accommodate hundreds of people. While the basics of office interior design and the purpose of the renovation are almost always the same -- maximizing the use of the space with an artful balance of aesthetics and function -- each sized interior design project presents its own unique challenges and considerations. A vetted interior design firm or interior designer can help you navigate the needs of your firm and possibilities of the interior space of your New York office.
Office lounge design by Mammoth Projects
Small Office Remodel
A New York City start-up firm that is either bootstrapping or has already raised its seed round of funding is typically a small enterprise, with 10 - 15 core employees who are focused on quickly creating a usable office space for immediate collaboration. This type of organization is more concerned about furnishing the interior space to fit its needs within budget, rather than spending time and money undertaking a renovation. Although they do occasionally splurge on a few decorative items, their focus is on comfort and hospitality-- through furniture and fabric selection, a pleasant color scheme, and other less expensive interventions -- as well as on function, including space planning to include a conference room and other collaboration spaces, essential to most start-ups.
Special Considerations for Small Office Renovations
If yours is a young firm just starting out in New York City, whether you’re moving into a new space or renovating your current one, budget and time considerations are key: you want to hit the ground running without spending more than you can reasonably afford. Your primary concern is efficiency, especially if the office has a small footprint. Your new office also needs to meet the needs of your staff.
The best way to a small office design that is efficient, functional, and attractive is to create a flexible layout that will accommodate your workers while protecting their health and well-being. A reconfigurable or “agile” office design that incorporates movable furniture and partitions offers options for collaboration and privacy as needed. It can be created by replacing fixed workstations with transformable spaces that cater to movement, workflow, and connection.
An agile work environment maximizes the use of the interior space, which in turn reduces costs: it is less expensive to reconfigure an existing office space than to renovate or update it, especially when construction and labor costs are factored in. Existing furniture can be repurposed rather than replaced, avoiding the need to purchase everything new.
The innovative design of flexible commercial spaces allow small companies the ability to physically reconfigure their offices on demand to accommodate changing day-to-day occupancy, create collaboration or private space as desired, and provide for future needs. Each area should be able to serve multiple functions, without a single square foot going to waste.
Anomaly New York office designed by Mammoth Projects
Medium-sized Office Remodel
A firm that has made it through the Series A and B rounds has achieved certain milestones in developing their business and are past the start-up stage. Flush with cash, that firm is growing quickly and often will go on hiring sprees. In order to attract and retain young talent, they are looking for New York commercial spaces that are cool-looking, and inviting, giving employees the flexibility to work in a setting that is best suited for the task at hand.
Good office interior design will help you attract and retain workers. With an firm designed to focus on improved employee engagement by encouraging collaboration and efficiency while affording privacy, your workforce will be happier and more likely to stay. Moreover, as offices bring New Yorkers used to home office back into a commercial space, focusing on comfort, hospitality, and even luxury will help with the transition back.
For new hires, a lasting impression is made as soon as a job candidate enters your reception area, and your New York City office should look appealing from the outset. Once your staff is in place, the design plan should be aware of the particular concerns and desires of a younger workforce. The interior designer should incorporate at least some of the following elements:
Chill-out zone
Healthy environment with biophilic elements, such as plants and water features
Flexibility to work in different areas and settings
Personalized work environment
Incorporation of some home office comforts to create appealing “resimmercial” spaces
Additional office interior design techniques to attract and retain young employees include incorporating a neutral and relaxing color scheme, soft furniture and fabric chosen with comfort in mind, and as much natural lighting as possible.
Lucid office interior design by Mammoth Projects
Corporate Headquarters Remodel
Companies in New York City that are already established, including investment firms, law offices, and IT companies, typically have the largest budget for renovating and upgrading their New York office. In addition to retaining job talent, their goal is often to further establish their brand and impress clients with leather upholstery, cutting-edge lighting and bespoke wallcovering.
For a large firm, the importance of corporate branding is critical when considering the office interior design. The offices should be designed to attract new talent, make employees feel proud to work there, and, just as important, make an excellent impression on clients. By incorporating a clear message by using branding throughout the office space, the company can build recognition and trust in its brand. This can be accomplished with a well-devised color scheme, the prominent use of corporate logos and a consistent overall interior design scheme that helps reinforce the firm's vision and message.
Interior Design’s Relationship to Your Corporate Culture
Your interior designer or design company should communicates your firm's culture. A well-appointed and attractive New York City office sends a clear message while reflecting the firm's visual identity, personality and priorities. It is an essential tool to elicit inspiration from employees and an emotional response from clients to strengthen your bond with them. It also makes your firm unique and helps it distinguish itself from the competition.
The role of your commercial space’s interior design should never be underestimated. Whether you have one employee or 10,000, or whether your space is small, medium or large, it is worth considering who you will bring on as interior designer or design firm to help you achieve the best result your New York office can offer.
Office interior design for a New York City startup
Cost of Office Renovation; Developing a Working Budget
On the lower end, you’ll spend $1500 per employee for furnishings and decor. A mid-range project, where build-outs are involved typically spend between $7,000-$10,000/person.
How much does a commercial renovation cost per square foot in NYC?
With the above considerations in mind, you can estimate your own project’s costs well enough to proceed with confidence. Depending on factors like space usage, team size, building age, and scale, your commercial remodel project can range from $30 per sq. ft. on the low end to over $300 per sq. ft.
If you’d like help, you can get a closer sense of how much your project will cost by giving us a call or scheduling a complimentary consultation here.