How Much Does a Commercial Tenant Finish Out Cost per Square Foot in Texas?

A national commercial real estate firm publishes a yearly office fit out cost guide. Its 2026 edition puts a full finish out of a new office shell in Dallas near $141 per square foot. The U.S. average in the same guide is $162. The firm’s 2026 retail guide puts an in-line store finish out at about $157 per square foot nationally.

A brokerage’s build-out guide puts a basic warehouse finish far lower, at about $10 to $40 per square foot. By the office guide’s own note, office space a tenant has used before runs 10 to 15 percent less.

These are market numbers, not our price list. Our commercial tenant finish out page covers how we run a finish out as one job, from the roof to the floor.

What are the market ranges for a finish out in Texas?

Sources: the two 2026 cost guides and the brokerage guide. Office figures are hard costs for a new shell and include a 10 percent contingency.

The office guide leaves out low voltage cabling, audio visual equipment, security and furniture.

What is in scope on a commercial tenant finish out?

Electrical and HVAC lead the cost. Drywall, ceilings, doors, floors, cabinets and countertops, insulation and the finishes follow. On some jobs the scope reaches the roof.

The 2026 office guide breaks the Dallas number down by trade. Electrical is the biggest line at about $32 per square foot. Mechanical, plumbing and fire protection run about $26. Drywall, acoustic ceilings and carpentry run about $21. General requirements, conditions and fee add about $15, and the 10 percent contingency about $14.

A polished concrete floor uses the slab that is already there. Polished concrete floors inside finish outs are part of our concrete work.

How does the condition of the space change the price?

A cold or gray shell has a concrete floor, exposed structure and often no HVAC, plumbing or finished walls. A white box, or vanilla shell, comes with finished walls, a basic ceiling and lighting, HVAC and a code restroom.

A space a tenant has used before starts with demolition. The office guide’s used-space scope pulls out the old finishes, partitions, ceilings and mechanical and electrical systems. The saving comes from reusing about a quarter of the partitions and ceilings, plus the main electrical distribution.

Used space also hides old ductwork and wiring that may not meet today’s code. The quote should say what happens when a wall comes down and a surprise shows up.

What does a tenant improvement allowance cover?

A tenant improvement allowance, or TI allowance, is the landlord’s share. The landlord puts a set dollar amount per square foot toward the finish out. The tenant pays everything above it. In a turnkey deal the landlord instead delivers the space finished to an agreed plan and pays for the work.

The office guide’s research put Class A office allowances in the U.S. near $80 per square foot in late 2025. Allowance terms live in the lease, so the finish out quote belongs on the table before the lease is signed.

Does Texas sales tax apply to a finish out?

The Comptroller’s rules count the first finish out of a new structure as new construction. Tax applies to the materials but not to the labor. A remodel of nonresidential space a tenant has used before is taxable repair and remodeling. The whole charge is taxable, including the labor.

The state rate is 6.25 percent, and local rates add up to 2 percent more. That makes the top combined rate 8.25 percent. On a $120 per square foot remodel of used space, tax at 8.25 percent adds about $10 per square foot. Separately stated permit fees stay out of the taxable total. The owner’s accountant should confirm which rule a job falls under.

What permits and inspections does a Fort Worth finish out need?

In Fort Worth, a building permit covers work that changes, moves or repairs walls, floors, ceilings, windows or doors. The same rule covers electrical, mechanical and plumbing work. Cosmetic work alone needs no permit: floor or wall covering, cabinets, countertops, shelving, or a swapped plumbing fixture. Electrical, mechanical and plumbing permits are separate, and the building permit comes first. The city’s first review of a complete commercial application takes 7 business days.

Two state rules ride along. A project costing $50,000 or more registers with the Texas Department of Licensing and Regulation for accessibility review. The city asks for that registration number with the permit application. Smaller projects skip the registration but still have to meet the Texas Accessibility Standards. Within a year of completion the owner has the space inspected, usually by a Registered Accessibility Specialist.

The second rule is the asbestos survey. State law bars a city from issuing a renovation permit on a public building without one. An asbestos inspector the state licenses performs the survey. Otherwise an engineer or architect certifies that the affected parts hold no asbestos. Most retail and office buildings fall under that law’s definition of a public building.

Any building used or occupied in Fort Worth also needs a certificate of occupancy. A shell building gets none until a separate Tenant Finish Out remodel permit is completed. The certificate issues after all final inspections pass. The permit office answers fee questions.

What moves the number most?

Size is one lever. Supervision, site setup and the contractor’s fee ran about $15 per square foot in Dallas. On a small space, those costs spread over fewer feet.

Labor is another. The retail guide reports persistent shortages of HVAC, electrical and plumbing trades, and those shortages keep wages up. In the office guide’s contractor survey, 79 percent expect labor and material costs to rise, and none expect a drop.

Power and cooling loads are the third. A data center floor needs far more power and cooling than an office, so those lines run higher. We handle the site side of those campuses as data center site work, and the building side as a finish out.

What should a written finish out quote cover?

Two quotes only compare when they list the same work. Ask for these pieces:

• The shell condition the quote assumes, and what the landlord delivers
• Demolition and disposal on a used space
• HVAC, electrical and plumbing, with the trade permits named
• Drywall, ceilings, insulation, doors, hardware and millwork
• Floors, with polished concrete or a covering named
• Roofing, where the scope reaches the roof
• The asbestos survey and the accessibility registration and inspection
• Permit fees stated separately, and the contingency
• Sales tax treatment, new construction or remodel

What is the next step for a finish out in Texas?

Send the plans, the lease exhibit on the landlord’s delivery condition, and the allowance terms if you have them. We look at the space and put the quote in writing. Call or text (214) 557-5106, or read about retail and office finish outs across Texas.