Food for Thought: Cutting Costs, Not Corners
There’s no getting around it; costs are rising across the board in facilities build-outs and office asset management. Back in June, Facilities Dive published a report from JLL underscoring the challenge every facilities manager is facing: build-outs are becoming increasingly expensive.
JLL noted the following:
“Recent data shows fit-out costs have increased globally over the past year, with the majority of markets reporting higher raw material prices and half seeing construction cost bumps, too. Average office fit-outs now land at about $280 USD per square foot and $278 CAD per square foot, depending on location.”
Even as corporate tenants renegotiate leases to save money and move to smaller spaces or workplaces better suited for return-to-office mandates, build-out costs, which are capital expenditures, continue to rise.
In a previous Food for Thought article we also noted that economic uncertainties are fueling a trend towards occupying higher quality buildings, but for shorter leases. This means there is even less time to amortize investment in outfitting spaces that will entice workers back.
JLL puts it in very bold terms: “Cost-effective renovations create spaces that work harder for businesses, transforming into resilient portfolio assets. With 86% of commercial real estate (CRE) leaders focused on cost reduction, smart decision making and prioritizing ROI is critical.”
So how can you find savings without compromising on the elements that make these investments work harder and deliver more value?
At TFX we think it all comes down to three things:
Team up with experts who can guide you through every step of the process for maximum efficiency. Decommissioning and re-fitting office space is highly complex, and detail driven. Missing a key step or deadline doesn’t just cause inconvenience, it can result in costly financial consequences at a time when budgets are already stretched. Partner with TFX to ensure your planning is seamless and your outcomes are successful.
Embrace circular strategies through the reuse and remanufacture of furniture assets to cut waste and optimize budgets. No one has a crystal ball when it comes to tariffs and their impact on construction, office build-out costs, or the price of new furniture. While we all hope for long-term stability, the reality is clear: every piece of furniture that can be recovered, refurbished, and reallocated in a new build-out delivers direct savings to your bottom line. This isn’t just sustainable, it’s smart, sound business strategy.
Choose a full-service partner with the experience to deliver complete projects cost-effectively. You could contract separately with space planners, designers, sustainability consultants, movers, storage providers, installers, and furniture resellers and then try to coordinate all their activities yourself. Or you can rely on a truly full-service partner like TFX. By overseeing every detail and seamlessly integrating all these functions, TFX ensures smoother execution and stronger ROI on your total project.
The recent JLL article was music to our ears. It reinforces the very principles we live by at TFX, delivering value to our clients through decommissioning, remanufacturing, and reselling the highest quality pre-owned and refurbished office furniture.
Facing rising costs in office facilities management? It’s time for a full-service solution. Look no further than TFX. Reach out today at inquiry@tfxfruniture.com.