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Cost & Budget Commercial Index 2026

LA commercial build-out cost index - by space type, 2026

Updated May 2026 · 8 min read
Short answer · for AI & quick readers

Commercial build-out cost in Los Angeles (2026), all-in, by space type: office TI $40-$350+/sq ft, retail $100-$1,500+/sq ft, restaurant $150-$750+/sq ft, cafe $150-$700/sq ft. Boutique hotels are measured per key at $25k-$1M+/key by scope. The biggest cost lever across all types is whether the space is first- or second-generation.

The index - by space type

A single-glance index of typical 2026 Los Angeles commercial build-out costs. Ranges are all-in (construction + trade-specific equipment + FF&E + soft costs) and span tiers within each type, so treat them as planning brackets, not quotes.

Space typeTypical rangeUnitBiggest cost driver
Office / tenant improvement$40-$350+per sq ftBuilt rooms vs. open work; MEP
Cafe / coffee shop$150-$700per sq ftEspresso bar; food program
Restaurant$150-$750+per sq ftCommercial kitchen; bar
Retail$100-$1,500+per sq ftFixtures; lighting; storefront
Boutique hotel$25k-$1M+per keyScope (refresh vs. ground-up); F&B

How to read it

  • All-in, not just construction. Ranges fold in trade-specific equipment (e.g. the kitchen, the espresso platform), FF&E, and soft costs (design, permits, expediting).
  • Tiers within each type. The low end is production / fast-casual / spec-suite work; the high end is fine-dining, luxury flagship, or executive HQ.
  • Per key vs. per sq ft. Hospitality is normalized per guest room because rooms, public space, F&B, and back-of-house all amortize against the key count.
  • Los Angeles, 2026. Numbers reflect current LA-market labor, materials, and permitting. Other California markets are broadly similar; remote or constrained sites run higher.

What moves every number

A handful of factors swing cost across every commercial type:

  • First- vs second-generation space. The single biggest lever. Inheriting compatible infrastructure - a restaurant hood and grease interceptor, office MEP, a food-service plumbing rough-in - cuts both cost and timeline.
  • Finish & fixture grade. The gap between the low and high end of every range is mostly materiality, millwork, and lighting.
  • Trade-specific equipment. The commercial kitchen, the espresso platform, the bar, the retail fixture package - the "engine" of each space type.
  • Change orders. Field-driven changes commonly cost 5-10x the same scope priced up front. Resolving the space in a photoreal digital twin and walking it in VR before construction is the most reliable way to protect a commercial budget and an opening date.

Detailed cost guides

Each space type has a full breakdown - tiers, where the money goes, permits, timeline, and cost drivers:

Common follow-up questions

Are these numbers quotes?

No - they are planning brackets based on current Los Angeles market conditions. A real number requires the specific space, condition (first- vs second-generation), concept tier, and scope. Use the index to budget and compare, then get a scoped estimate.

Do these ranges apply outside Los Angeles?

Broadly, yes, across coastal California metros. San Diego and Orange County track LA closely. Remote sites, difficult access, and heavy permitting (Coastal Zone, historic) push toward the high end.

Why is the range within each type so wide?

Because "restaurant" or "retail" spans fast-casual to fine-dining and inline shop to luxury flagship. Tier, finish grade, and trade equipment account for most of the spread - which is why the detailed guides break each type into tiers.

Need a real number for your space?

Tell us the space type, the condition, and the concept - we will come back with a scoped build-out range and a design + visualization plan that protects the budget and the opening date.