London has climbed to the number two spot on the list of the world's most expensive markets for office fit‑outs, a reminder that shiny, tech‑stacked workplaces do not come cheap. As companies chase AI‑ready infrastructure and higher‑end amenities, the price of getting a move‑in‑ready office in global hubs is heading in one direction: up.
According to CoStar on May 14, 2026, the new ranking is based on analysis by consultancy Turner & Townsend that tracks how AI growth and demand for premium workspace are reshaping fit‑out costs. The CoStar piece, sitting behind a subscriber wall, highlighted the consultancy's findings and summed up how occupiers are zeroing in on high‑spec, tech‑enabled installations, feeding a broader industry debate about spiraling refurbishment bills.
What The Report Measured
Turner & Townsend's Global Office Fit‑Out Cost Guide benchmarks high‑, medium‑ and low‑spec projects across dozens of cities. In its 2025 edition, the guide puts London's average high‑spec fit‑out at about US$5,932 per square metre. The methodology rolls in construction, MEP, furniture and professional fees, giving occupiers a full picture of what a CAT A/B fit‑out in a prime market really costs rather than just the headline build figure.
How Other Guides Stack Up
Not every benchmark tells exactly the same story from year to year. JLL's 2026 fit‑out guide singles out New York, San Francisco and Boston among the priciest cities and points to rising mechanical, electrical and technology budgets as the fastest‑growing parts of the bill. Colliers' EMEA Occupier Fit‑Out Guide 2026 echoes that pattern, describing a "flight to quality" that is pushing high‑spec prices higher across London and other heavyweight hubs.
Why Costs Are Climbing
Consultancies cite a familiar mix of pressures. AI‑ready workplaces need expensive M&E and AV systems, there is a shortage of specialist trades to install and commission them, and supply‑chain volatility continues to affect material prices and lead times. As Turner & Townsend and others flag, those technical systems and the skilled labour behind them now account for some of the fastest‑growing cost lines in many fit‑out budgets.
What It Means For Occupiers And Landlords
In London, the rush to best‑in‑class space is widening the gulf between prime and secondary stock. Landlords are leaning into upgrades to defend rental levels and reduce letting risk. Knight Frank's Spring 2026 Landlord Refurbishment Cost Guide reports tight availability and rising refurbishment budgets in Central London, alongside prime rents and very low vacancy rates that make significant upfront fit‑out spending look commercially rational rather than indulgent. For occupiers, that translates into larger upfront capital commitments and the need to lock in specialist contractors and key equipment earlier in the programme.
Whether London shows up as number one or number two in any particular ranking, the underlying message is the same: fitting out premium, tech‑enabled offices in global cities is getting more expensive. Industry guides lean on familiar tactics in response, from bringing in cost consultants early to using fixed‑price procurement where it makes sense and treating M&E and AV as core capital items, advice that is echoed in JLL's 2026 fit‑out guidance.
