What Does a Commercial Tenant Improvement Cost in South Florida in 2026?
Commercial tenant improvement costs in South Florida typically range from $30 to $250+ per square foot, depending on building class, the condition of the base shell, and the type of use. A cosmetic refresh on a Class B office runs far less than a full medical suite or a restaurant with a commercial kitchen. If you are planning a build-out in Palm Beach or Broward County in 2026, this guide gives you the benchmarks you need to set a realistic budget before you sign a lease.
Why South Florida TI Costs Run Higher Than National Averages
South Florida is not a cheap construction market. Labor costs are elevated because skilled trades are in high demand across active markets in Boynton Beach, Boca Raton, West Palm Beach, and Coral Springs. Material costs have stabilized somewhat since 2022-2023 inflation peaks, but they remain above pre-pandemic baselines. Permitting fees, impact fees, and the requirement to meet the Florida Building Code (including wind load and flood zone provisions) add cost that landlocked markets do not face.
Building owners and tenant-reps who use national cost data to anchor their negotiations often end up with underfunded projects and change-order surprises. Use local benchmarks from local general contractors who pull permits in Palm Beach and Broward counties regularly.
Cost Benchmarks by Build-Out Type (2026)
The table below reflects hard construction costs only – general contractor fees, labor, and materials. It does not include FF&E (furniture, fixtures, and equipment), A/V, security systems, signage, or soft costs like architect/engineer fees and permit filing fees. Those typically add 15-25% on top of hard costs.
| Build-Out Type | Cost Per SF (Hard Costs) | Notes |
|---|---|---|
| Cosmetic Refresh (paint, carpet, lighting) | $20 – $45/SF | Existing layout stays, no major trades work |
| Standard Office (Class B/C) | $60 – $95/SF | New partitions, updated restrooms, basic finishes |
| Class A Office (full build-out) | $95 – $160/SF | High-end finishes, AV integration, full electrical/data |
| Medical / Dental Office | $130 – $250/SF | Plumbing-intensive, X-ray shielding, specialized HVAC |
| Restaurant (Full Kitchen) | $175 – $300+/SF | Hood systems, grease trap, FRP, Type I/II ventilation |
| Retail (vanilla shell buildout) | $50 – $90/SF | Open floor plan, basic storefront, lighting upgrade |
| Retail (specialty/boutique) | $90 – $150/SF | Custom millwork, enhanced lighting, feature walls |
These ranges reflect 2026 South Florida market conditions in Palm Beach and Broward counties. Actual costs depend on existing building conditions, scope specifics, and current subcontractor pricing.
What Drives Cost Up – and Down
Several variables move your number significantly within any given range:
- Shell condition: A warm vanilla shell (HVAC distributed, restrooms complete) costs less to finish than a cold dark shell where you are starting from bare concrete and open studs.
- Plumbing additions: Every new plumbing fixture is expensive – running new drain lines through a concrete slab in South Florida (where slabs are on grade) requires core drilling and is not cheap.
- HVAC scope: Replacing or expanding a rooftop unit, adding zones, or engineering a high-humidity medical environment all push costs up quickly.
- Ceiling height and existing conditions: Buildings in Boca Raton and West Palm Beach that were built in the 1980s often have older MEP systems that require upgrades to meet current code once you pull a permit.
- ADA compliance: If the space has not been improved recently, an ADA path-of-travel upgrade may be required as a condition of the permit. Budget 20% of your hard cost as a trigger threshold per Florida Building Code.
Soft Costs: What Owners Forget to Include
Hard construction costs are only part of your total project budget. Owners who sign leases based only on contractor bids frequently run out of money during construction. Build these into your proforma:
- Architectural and engineering fees: 6-12% of hard costs, depending on complexity
- Permit fees: Palm Beach County and individual municipalities (Boynton Beach, Boca Raton, Delray Beach) charge separately. Budget 1-2% of hard costs as a starting estimate.
- Owner testing and inspections: Threshold inspections for larger projects, fire suppression certification, and health department approvals for food service all have associated fees.
- Contingency: 10% minimum on a standard office. 15-20% on medical or restaurant where unknown conditions are common.
- Move-in costs, signage, and FF&E: Furniture and equipment are almost always tenant-supplied but frequently forgotten during lease negotiations.
Tenant Improvement Allowances: Bridging the Gap
Most commercial leases in South Florida include a tenant improvement allowance (TI allowance) – a landlord contribution toward build-out costs. In 2026, TI allowances in Palm Beach County typically range from $30 to $80 per square foot for office space, with higher allowances in newer Class A buildings where landlords compete aggressively for quality tenants. Retail TI allowances are often lower: $20-$50/SF.
If the build-out you need costs $120/SF and the landlord offers $60/SF, you are funding the gap yourself – either out of pocket or through an above-market rent concession baked into the lease. Understanding your true build-out cost before you negotiate the TI allowance is critical. See our deeper guide on commercial tenant improvement services for more on how we help owners and tenants structure this.
How to Get a Reliable Budget Before You Sign
The only way to get a reliable TI cost estimate is to have a commercial general contractor walk the space with your architect’s preliminary plans – or at minimum, a detailed program outlining how many private offices, restrooms, breakrooms, and specialty areas you need.
We offer preliminary budget consultations for tenants and landlords in Palm Beach and Broward counties before a lease is finalized. This is not a binding bid – it is a realistic range that keeps you from signing a lease you cannot afford to build. Contact us to schedule a walkthrough: coopercd.com/contact or call (561) 571-3324.
What Cooper Construction and Development Delivers
Cooper Construction and Development is a veteran-owned commercial general contractor based in Wellington, FL. We specialize in commercial tenant improvements across Palm Beach and Broward counties – from standard office build-outs to medical suites and restaurant conversions. Every project is tracked and documented in Procore so owners have real-time visibility into budget, schedule, and daily field activity.
View our recent projects to see the range of commercial work we have completed in South Florida, or download our capability statement for a full overview of our services and qualifications.
Frequently Asked Questions
Q: What is the average cost per square foot for a commercial build-out in South Florida?
A: For a standard office build-out in Palm Beach or Broward County in 2026, expect $60-$95/SF for hard costs. Medical and restaurant spaces run $130-$300+/SF depending on scope.
Q: Does the TI allowance cover all build-out costs?
A: Rarely. TI allowances in South Florida typically cover 30-60% of a full build-out. The tenant or owner funds the remainder, either out of pocket or through lease restructuring.
Q: How early should I involve a GC in the tenant improvement process?
A: Before you sign the lease. A preliminary budget from a local GC helps you negotiate the right TI allowance and avoid underfunded projects.
Ready to plan your South Florida build-out? Call Cooper Construction and Development at (561) 571-3324 or contact us online. We serve Palm Beach and Broward counties from our base in Wellington.