COST GUIDE

Commercial HVAC tenant improvement cost per sq ft

A per-square-foot HVAC number is the first thing everyone asks for and one of the least reliable things we can give. Here is what actually drives the cost, why the range is so wide, and how to get a number you can budget against.
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WHY THE RANGE IS WIDE

Square footage is not what drives HVAC cost

HVAC cost follows load, occupancy and ventilation, not area. A lightly occupied office and a restaurant of the same size can differ by several times, because one needs modest cooling and a few diffusers and the other needs hood exhaust, makeup air and far more cooling.

The second big driver is what is already there. A second-generation suite with sound rooftop units and reusable duct mains costs far less than a cold dark shell that needs new equipment. Units near the end of their life can swing the number just as much.

That is why any per-square-foot figure without a use, a condition and a location attached is close to meaningless. The rest of this page explains the drivers so you can see which apply to your space.

The biggest cost drivers

WHAT GOES INTO THE NUMBER

The cost components of an HVAC TI

Each of these is priced separately in a real estimate.

Equipment

New rooftop units, split systems or fans, or nothing at all if the existing equipment can be reused. Often the largest single item.

Ductwork and distribution

Duct, boxes, diffusers and grilles. Scales with the number of rooms and zones, not just area.

Ventilation and exhaust

Outside air, restroom and specialty exhaust, and kitchen or lab systems where the use requires them.

Controls

Thermostats at a minimum, or full building automation integration where the landlord requires it.

Balancing and commissioning

Test and balance, and the commissioning the energy code or specification requires.

Soft costs

Engineering, permit fees, crane and roof work, after-hours premiums and closeout documentation.

BUDGETING STEP BY STEP

How to budget before you have drawings

A better approach than multiplying area by a rate.
01

Define the use

Office, retail, restaurant, medical and lab have fundamentally different loads and ventilation. The use is the starting point.
02

Find out what is there

A walk of the suite and roof tells us whether the equipment and duct can be reused. That often narrows the range more than anything else.
03

List the special loads

Kitchens, server rooms, labs and dense occupancy each add equipment and ventilation.
04

Check the equipment early

If the units need replacing, that belongs in the budget from day one, along with the crane and roof work.
USING A RANGE HONESTLY

What a per-square-foot figure is good for

A per-square-foot rate has one legitimate use: a first-pass feasibility check, before there is a layout, to decide whether a space is worth pursuing at all. Used that way it is genuinely helpful.

It stops being helpful the moment it is used to set a budget you will be held to. Two projects with the same rate can be far apart once the equipment and existing conditions are known, and the difference surfaces later as a change order.

We will give you a planning range on a call if you need one for an early pro forma — and we will tell you what it assumes, then replace it with a line-item estimate as soon as there is a layout to count from.

Get a real number instead

COMMON QUESTIONS

HVAC cost questions

The questions we hear most when tenants and brokers are building an early budget.

We can give a planning range once we know the use, the shell condition and the location, along with what it assumes. It is useful for feasibility, not for a budget you will be held to.

New equipment, kitchen or lab exhaust, dense occupancy, building automation integration, crane lifts and after-hours work are the usual drivers.

Usually, when the existing equipment and duct can be reused. Not always — units near the end of their life or undersized for the new use can erase the savings.

We list them separately so you can see them, rather than hiding them in the total.

Much better than a per-square-foot figure. We mark allowances for items still undefined so you can see where the number could move.

Replace the estimate with a real number

Send a layout and tell us the use. We turn most line-item estimates around in three business days.