A Practical Guide for Business Owners, Tenants, and Property Managers
How to Budget for Office Build-Outs in the Denver Market
Planning an office build-out in Denver? Whether you're moving into a new space or reconfiguring an existing one, understanding the costs involved is essential. With construction pricing, materials, and permitting all varying by location and scope, getting an accurate budget early helps avoid surprises down the road.
Here’s how to approach your office TI (tenant improvement) budget like a pro — and what to expect in the Denver metro market.
1. Understand the Scope of Work
Every office build-out is different. Are you starting from a shell space, or just making cosmetic upgrades? Your budget should reflect key project categories:
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Demolition and prep work
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Framing and drywall
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Mechanical, Electrical, Plumbing (MEP)
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Flooring, ceiling, and lighting
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Finish carpentry and custom millwork
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IT/data cabling and access control
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Permits, inspections, and contingency
TIP: The earlier you define your scope, the more accurate your pricing will be.
2. Know the Going Rates in the Denver Area
As of 2025, the average office build-out in the Denver metro area typically falls between $75–$125 per square foot, depending on:
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Building condition (shell, second-generation, or occupied)
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Material quality and finish level (mid-range vs. high-end)
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Complexity of mechanical/electrical systems
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Location (downtown vs. suburbs)
Class A offices in LoDo or Cherry Creek may cost more due to premium finishes and coordination requirements. Smaller professional offices or suburban suites may fall on the lower end.
3. Factor in Permit Costs and Timelines
Denver and surrounding municipalities like Lakewood, Aurora, and Westminster all have their own permitting processes. Depending on project complexity, plan reviews can take 2 to 12 weeks, and permit fees may range from $1,000 to $10,000+.
Make sure your contractor includes permit coordination in their scope — and don’t forget time is money. Delays can impact lease terms, move-in schedules, and operational downtime.
4. Plan for Contingencies
Even with good planning, things happen. Structural surprises, design revisions, or long lead times on materials can all affect costs. A good rule of thumb:
👉 Add 10–15% contingency to your construction budget.
This helps protect against unforeseen expenses without blowing your bottom line.
5. Align with Your Tenant Improvement Allowance (TIA)
If you're leasing space, your landlord may offer a Tenant Improvement Allowance (TIA) — a per-square-foot contribution toward your build-out. Typical TIAs in Denver range from $30–$60/SF, but don’t always cover everything.
Make sure you:
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Review your lease carefully
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Understand what's included vs. excluded
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Coordinate your construction budget accordingly
Pro Tip: A strong contractor can help you align your TIA with actual construction costs and prioritize spend for the best ROI.
6. Work With a Contractor Who Knows the Denver Market
Your contractor shouldn’t just build — they should help you budget, value-engineer, and navigate local regulations. Terra Construction specializes in commercial tenant improvements across the Denver metro area, bringing clarity, speed, and craftsmanship to every project.
Let’s Talk Numbers
Need help budgeting your next office build-out? Contact Terra Construction for a consultation and cost breakdown tailored to your space and goals.