Published: July 4, 2026 · Last reviewed: August 2026 · Reviewed by: Buildup Contracting Estimating Team · Service area: Toronto & GTA
Planning numbers, not a quote — your space, your building and your scope decide the specifics. Full notes at the end of this guide.
Commercial renovations across Toronto and the GTA run $50 to $300+ per square foot in 2026. A paint-flooring-lighting office refresh sits at the bottom of that range, layout changes with new partitions and HVAC sit in the middle, and anything with a commercial kitchen pushes past the top. The number is set mostly by scope and by what your building hides behind its walls — not by which contractor you call.
Two real projects show how wide that band is in practice. We delivered a 1,400 sf office in Richmond Hill, bare shell to move-in ready, at roughly $71 per square foot. We also delivered a 4,000 sf showroom in Etobicoke at about $30 per square foot of construction — a large open box, few partitions, deliberately simple finishes. Same contractor, same year, same region; the scope decided the number.
In this guide: 2026 ranges by project type · sample budgets · what actually moves the number · a line-by-line look at where the money goes · how to build a budget that survives construction · FAQ.
Want the real number for your unit?
Free site walk across Toronto & the GTA — you get a written scope and budget range within one business day.
Get a build-out estimate → or call 647-477-7999These are the planning ranges we quote against. Every figure is hard construction cost per square foot of leased area, before soft costs and before contingency (both covered below).
| Project type | Basic | Mid-range | High-end |
|---|---|---|---|
| Office | $50–100 / sf | $100–200 / sf | $200–350+ / sf |
| Retail | $75–150 / sf | $150–250 / sf | $300+ / sf |
| Restaurant / food service | $70–120 / sf (QSR refresh) | $150–300 / sf | $300+ / sf (heavy ventilation) |
A basic refresh — new paint, flooring, lighting, maybe a kitchenette swap — runs $50 to $100 per square foot. A moderate renovation with layout changes, new partitions, updated HVAC distribution and modern finishes runs $100 to $200. High-end build-outs with custom millwork, premium finishes, glass demising and extensive mechanical work reach $200 to $350+. What separates the tiers is almost entirely how much you touch behind the ceiling and inside the walls. Our office & commercial TI page walks through what a typical scope includes.
A basic open-concept build-out with standard finishes runs $75 to $150 per square foot. Custom displays, specialised lighting and brand-specific design push $150 to $250, and flagship-grade fit-outs can pass $300. Retail is where storefront glazing, signage and landlord design criteria add cost that has nothing to do with the interior itself. More on that on our retail construction page.
Restaurants are consistently the most expensive commercial interiors — kitchen ventilation, grease management, under-slab plumbing and public-health requirements see to that. As 2026 planning numbers, a quick-service refresh runs $70 to $120 per square foot turnkey, and full-service casual restaurants run $180 to $300. Heavy-ventilation concepts like hotpot and Korean BBQ start higher. Restaurants are a different animal, so we wrote them up separately in the restaurant build-out cost guide.
Square footage multiplied by the range that matches your project type and finish level gives you a first number. It's rough — but it tells you which conversation you're in before you've spent anything on drawings.
| Space | Scope | Hard-cost range |
|---|---|---|
| 1,500 sf office | Basic refresh | $75,000 – $150,000 |
| 3,000 sf office | Mid-range, new layout | $300,000 – $600,000 |
| 1,200 sf retail unit | Basic open-concept | $90,000 – $180,000 |
| 2,500 sf retail unit | Custom fixtures & lighting | $375,000 – $625,000 |
| 1,500 sf QSR | Refresh, turnkey | $105,000 – $180,000 |
| 2,000 sf full-service restaurant | New build-out | $360,000 – $600,000 |
Add 20–30% for soft costs and 10–15% contingency (see below) to get from hard cost to the number you actually need to fund. Most of the commercial projects we take on land between $50K and $600K; small repairs and unit turnovers for landlords run $200 to $10K.
The single biggest factor, by a wide margin. A cosmetic refresh and a gut renovation that moves walls, upgrades the electrical panel and reroutes plumbing are different budgets by multiples, not percentages. Three questions sort most projects into a tier fast: Are you moving walls? Are you touching mechanical (HVAC, plumbing, electrical service)? Are you adding anything wet — a kitchen, washrooms, a lab? Every yes moves you up a tier.
Older buildings — especially in the downtown core — keep their secrets until demolition day. Asbestos in old flooring or pipe wrap, aluminium wiring, plumbing that doesn't meet current code, an electrical service that can't carry your load: hidden conditions like these routinely add 10–20% to a budget. We flag the risks on the site walk and carry contingency in the estimate, because "nobody could have known" is not a sentence you want to hear mid-project.
This is the one that catches tenants who signed a lease before walking the space with a contractor. If the electrical service is too small, if there's no path for a fresh-air unit to the roof, if the plumbing stack is on the wrong side of the unit — those aren't renovation costs, they're infrastructure costs, and they can double a budget. It's the main reason we run a complimentary pre-lease site walk: the cheapest time to find out is before you sign. Our lease negotiation and work-letter guide covers what to ask the landlord to carry.
Commercial renovations in Ontario almost always need a building permit — structural changes, fire separations, mechanical modifications and washroom changes all trigger one. Permit fees, engineering drawings and review time are part of the real cost, not extras. Accessibility (AODA/OBC barrier-free), fire separation and occupancy classification are the three code items that most often add scope after drawings are reviewed. Our commercial renovation permits guide covers what triggers a permit and roughly how long each municipality takes.
Working inside a managed plaza, mall or office tower means insurance certificates, hoarding, protection of common areas, freight-elevator bookings, and after-hours windows for noisy work. None of it is optional, and all of it costs time. Downtown Toronto tends to run more expensive than Mississauga, Brampton or Markham for exactly this reason — logistics and access, plus higher permit fees.
Skilled trades are still short across the GTA and material prices still move. Inflation has cooled since the post-pandemic spike, but labour rates haven't come down — and contractors across the region expect both to keep drifting up near-term. Pricing a job early and locking scope is still the cheapest insurance against budget creep. Long-lead items — custom millwork, storefront glazing, kitchen equipment, specialty lighting — are where a late decision turns into both a schedule slip and a rush premium.
Compressing a schedule to hit an opening date costs money: overtime, stacked trades, expedited materials. Stretching it out costs money too — you're paying rent on a space that isn't producing revenue. The sweet spot is a realistic schedule set backward from your target date, with long-lead orders placed early. Our renovation timeline guide lays out typical durations by project type.
A commercial renovation budget is really five or six budgets stacked on top of each other. Understanding the stack is what lets you cut cost without cutting quality.
Rule of thumb for value engineering: spend on the client-facing areas your customers or staff see every day; save on back-of-house. A slightly cheaper flooring in the storage room changes nothing; a slightly cheaper reception finish changes the first impression.
Square footage times the range that matches your project type and finish level. Then answer the three tier questions above honestly — walls, mechanical, wet areas. If you're moving up a tier on any of them, use the higher band.
10–15% on commercial projects, up to 20% in an older building or a space that hasn't been renovated in a decade. Something will come up; the only question is whether it was already in the budget.
Architectural and design fees (typically 8–15% of construction), permit and inspection fees, engineering, project management, furniture and equipment, IT, moving. Soft costs add 20–30% on top of hard construction — leave them out and the "overrun" was really just an incomplete budget.
If you're leasing, your landlord may fund part of the work. TI allowances in the GTA typically run $20 to $60 per square foot depending on lease term and market. Our TI allowance guide covers how they're structured and how to negotiate for more — and what "landlord's work" should include so it doesn't quietly become your cost.
Get at least three detailed, itemised quotes — a one-page number is not a quote. When quotes are far apart, it's almost always because they're pricing different scopes, not because one contractor is cheaper. Ask each bidder what they've excluded. Our guide on choosing a commercial renovation contractor in Toronto lists the questions that surface those gaps.
We build offices, retail stores and restaurants across Toronto and the GTA — 8 years, 100+ commercial build-outs, office in Richmond Hill. Every estimate we issue is a written, itemised scope with the exclusions spelled out, so you can compare it line by line against anyone else's. Change orders are approved before any work proceeds. WSIB and commercial general liability certificates are available on request for your landlord, and every project carries a one-year workmanship warranty.
See what we've delivered for a sense of how those ranges play out on real projects, or read how the process runs on our services overview.
Q: How much does a commercial renovation cost per square foot in Toronto? A: As 2026 planning numbers, $50 to $300+ per square foot of hard construction cost. Office refreshes sit at $50–100, mid-range office and retail work at $100–250, and restaurants at $150–300+. Add 20–30% for soft costs and 10–15% contingency to reach a fundable budget.
Q: What's the cheapest kind of commercial renovation? A: A cosmetic refresh — paint, flooring, lighting, minor millwork — in a space that already has the right layout and mechanical capacity. The moment you move walls, touch HVAC or plumbing, or add a wet area, you're in a higher tier.
Q: Do I need a building permit for a commercial renovation in Ontario? A: Almost always. Structural changes, new or moved partitions, fire separations, mechanical and electrical modifications, and washroom changes all trigger a permit. Pure finish work — paint, flooring, swapping fixtures like-for-like — usually doesn't. When in doubt, ask the municipality before you start.
Q: How much contingency should I carry? A: 10–15% on a typical commercial project, up to 20% in an older building or one that hasn't been renovated in years. Hidden conditions behind walls and ceilings are the most common source of added cost.
Q: What are soft costs and how much are they? A: Everything that isn't construction: design and engineering fees (8–15% of construction), permits, project management, furniture and equipment, IT, moving. Together they add roughly 20–30% on top of hard cost.
Q: Will my landlord pay for any of it? A: Often, through a tenant improvement allowance — typically $20–60 per square foot in the GTA, depending on lease term and market. It's negotiable, and so is the scope of landlord's work. Ask before you sign.
Q: Why are two contractor quotes so far apart? A: Almost always because they're pricing different scopes. Ask each bidder for an itemised quote and a list of exclusions, then compare line by line. A one-page number isn't a quote.
Q: Does Buildup do small jobs? A: Yes. Our commercial projects typically run $50K to $600K, and we also handle small repairs, unit turnovers and maintenance from $200 to $10K for landlords, property managers and multi-location operators.
The ranges above put your budget in the right neighbourhood. A real number takes a site walk — ours are free across the GTA, with a written scope and estimate within one business day. Call 647-477-7999 or tell us about your project. Email info@buildupcontracting.ca.
This article is for planning purposes only. Cost, timeline, permit and code requirements vary by project scope, municipality, landlord, base-building condition, engineering, finish selections, and current trade and supplier availability. Ranges reflect Buildup Contracting's 2026 estimating experience on office, retail and restaurant interiors across Toronto and the GTA and are not a quote. Confirm specific requirements with the municipality, your architect or engineer, and your landlord.
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Planning a build-out
Buildup Contracting builds offices, retail stores and restaurants across the Greater Toronto Area — permits, trades and inspections on one contract, with a written scope and a first read on budget within one business day of the site walk.
Restaurant constructionRetail fit-outsOffice and commercial TIFranchise and multi-unitLandlords and property managers
Building in a specific city? These pages cover the local approvals, the departments that review them, and what usually moves the schedule there.
More of the research we use to scope real projects:
Commercial kitchen design mistakesChoosing a restaurant contractorOffice fit-out costs in TorontoBubble tea shop build-outsLease-to-opening checklistChoosing a renovation contractorAll guides
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