Despite speculation that office buildings are a thing of the past, demand for better workplaces is alive and well — it’s just evolving. Many corporate occupiers are realizing that high-quality, well-designed office space is essential to attract and retain employees in an era of flexible work and rising expectations.

Louis Molinini, Americas market lead for project and development services at JLL, explains that while cost pressures and global volatility remain, companies want spaces that make business sense and deliver for their people.

“For those reasons, many of our clients across North America are asking the same questions: How do we make the most of what we have without overbuilding or compromising on employee experience? And how do we stay agile when trade policy and economic conditions are shifting daily?” Molinini wrote.

According to JLL’s new U.S. and Canada Office Fit-Out Cost Guide 2025, 59% of organizations plan to increase investment in office upgrades. The goal: modern workplaces that align with flexible work styles while enhancing employee experience, brand, culture and productivity.

Companies are leaning into hospitality-style design, smarter layouts, premium finishes and amenities that balance sustainability with comfort. Offices built with recycled materials, smart air quality systems and wellness-focused designs are becoming standard, not optional.

“Once awareness into space usage is established, quality becomes the strategic differentiator, driven by expectations around tech integration, sustainability and user experience,” Molinini said.

But quality comes at a price. Office fit-out costs in North America have stabilized but remain high — averaging about $280 per square foot in the U.S. and $278 CAD in Canada, depending on location, design and finishes.

Labor availability, tariffs and shifting supply chains also complicate planning. “Ongoing U.S. trade policy uncertainty, including proposed tariffs and retaliatory measures, is impacting supply chains and inflating risk,” Molinini wrote. Companies are now setting aside 5% more in contingency costs to offset potential tariff swings.

To navigate the changing market, many occupiers are pairing adaptive planning with flexible fit-out packages and backup procurement options. “The winning approach focuses on short-term, actionable steps that align with long-term goals while regularly reassessing market conditions,” Molinini said.

Above all, companies see modern offices as strategic assets that support agility and performance — and the stakes are high for employers competing for top talent in a tight labor market.
Experts predict that the upgraded office trend will continue as companies compete to win over employees still weighing hybrid or remote work options. Many firms are using data to refine layouts and justify capital spend, ensuring each square foot delivers measurable ROI in productivity and culture.

Meanwhile, sustainability will remain front and center. As net-zero commitments expand, fit-out projects are expected to push greener materials, energy-efficient systems and smarter building tech even further.

As Molinini emphasized, “The workplace profoundly shapes how people feel, work and connect. With talent, performance and agility in focus, investing in aligned fit-outs creates competitive advantage.”

If you’d like, I can convert this into a LinkedIn thought leadership post, an internal email for stakeholders or a short op-ed version — just say the word!

Originally reported by Louis Molinini in Construction Dive.