A typical $2M commercial tenant improvement in 2026 is a 20,000 sq ft office re-stack on the third floor of an occupied Class A building, with a mix of private offices, open work area, four conference rooms, a pantry, and standard low-voltage infrastructure. This article walks through the CSI-division breakdown line by line so a pre-construction director can sanity-check the budget against typical 2026 ranges.
These are typical ranges, not your specific project. Use them to sanity-check the rolled-up budget; calibrate to your historical actuals via the BidFlow upload flow for project-specific accuracy.
Project Assumptions
- Footprint: 20,000 sq ft single-floor office TI
- Building: occupied Class A, floor 3 of 8
- Existing condition: previous tenant left in cold-shell-equivalent state
- Program: 12 private offices, 80-person open work area, 4 conference rooms, pantry, copy/print room, IDF closet
- Finishes: standard mid-tier (LVT + carpet tile, ACT 2x2, painted GWB, builder-grade millwork)
- MEP: 6 zones HVAC rework, 100 sprinkler heads relocated, full electrical rework, low-voltage included
- Schedule: 14 weeks from NTP to substantial completion
- Region: US national average (apply your city cost index for local calibration)
CSI-Division Cost Breakdown
| CSI Division | Scope | Typical $/sf | Subtotal (20,000 sf) | % of Total |
|---|---|---|---|---|
| Div 02 | Selective demo (partitions, finishes, ceiling) | $5.00 | $100,000 | 5.0% |
| Div 03 | Concrete (saw cut, infill, equipment pads) | $1.50 | $30,000 | 1.5% |
| Div 06 | Rough carpentry, blocking, base millwork | $3.50 | $70,000 | 3.5% |
| Div 07 | Insulation, firestopping, joint sealants | $2.00 | $40,000 | 2.0% |
| Div 08 | Doors, frames, hardware, interior glazing | $6.50 | $130,000 | 6.5% |
| Div 09 | Drywall + ACT + flooring + paint | $22.00 | $440,000 | 22.0% |
| Div 10 | Toilet partitions, signage, accessories | $1.50 | $30,000 | 1.5% |
| Div 12 | Custom millwork, casework, pantry build-out | $4.00 | $80,000 | 4.0% |
| Div 21 | Fire protection (head relocation + new heads) | $2.50 | $50,000 | 2.5% |
| Div 22 | Plumbing (pantry + accessibility upgrades) | $3.00 | $60,000 | 3.0% |
| Div 23 | HVAC zoning, VAV adds, controls | $11.00 | $220,000 | 11.0% |
| Div 26 | Electrical (lighting, power, panel work) | $13.00 | $260,000 | 13.0% |
| Div 27 | Low-voltage, data, AV pre-wire | $5.00 | $100,000 | 5.0% |
| Div 28 | Access control, security devices | $1.50 | $30,000 | 1.5% |
| — | General conditions / general requirements | $5.50 | $110,000 | 5.5% |
| — | Insurance + bonds | $2.50 | $50,000 | 2.5% |
| — | GC fee (5%) | $5.00 | $100,000 | 5.0% |
| — | Contingency (3%) | $3.00 | $60,000 | 3.0% |
| Total | $97.50 | $1,950,000 | 97.5% | |
| Soft costs (design, permits) | $2.50 | $50,000 | 2.5% | |
| Project total | $100.00 | $2,000,000 | 100% |
Where the Variance Lives
Two divisions carry most of the bid-to-bid variance on a project this size: Div 09 (drywall + finishes) and Div 23 (HVAC). Together they're 33% of the project. Small swings in spec or existing-conditions assumptions move the total by 5–10% before any other line moves.
Div 09 — Finishes
Mid-tier finishes ($22/sf) is LVT in circulation, carpet tile in offices, ACT 2x2 throughout, Level 4 GWB finish, and standard latex paint. Move to high-end ($30–$40/sf) by upgrading to polished concrete, hardwood in conference rooms, custom-fab metal ceiling features, Level 5 GWB, and zero-VOC specialty paint. Move down to Class B ($14–$18/sf) by going carpet-tile everywhere, ACT 2x4 with utility tile, Level 3 GWB. The same square footage carries a 2× spread just on finish selection.
Div 23 — HVAC
The $11/sf assumed 6 zones rework with VAV adds. Add 4 more zones for a tenant-with-server-room program and you're at $14–$16/sf. Drop to a single-zone open-floor plan with no rework and you're at $5–$7/sf. The variance is driven by zone count, not square footage. Verify zone count against the program before pricing — most architects show the zoning diagram in the M-series drawings, not the A-series.
The Five Lines Most Often Forgotten
- After-hours premium for occupied-building demo and concrete work. Standard 30–50% premium on the affected labor. On a $2M TI in an occupied Class A, this is typically $25K–$50K not in the base bid.
- Building protection — floor protection, elevator pads, common-area cleaning. $5K–$15K on a project this size. The property manager will require it.
- Permit expediting — most jurisdictions are 8–16 weeks on a TI permit if you take the standard queue. Expediter services run $5K–$15K to compress to 4–6 weeks. Rarely in the architect's permit allowance.
- Hazmat survey + abatement contingency — pre-1980 buildings need an asbestos survey before demo. $2K–$5K for the survey; $20K–$80K for abatement if hits are found.
- Re-commissioning of MEP systems — required by most building owners after MEP rework. $0.50–$1.50/sf typically billed by a third-party CxA.
How $2M Becomes $2.4M
The most common reasons a $2M TI bid lands at $2.4M actual cost:
- Demo discovers MEP or structure that requires redesign. $40K–$120K in rework + schedule delay.
- Tenant requests three change orders during construction at typical TI markup (25–35% on labor, 15–20% on material). $50K–$200K depending on scope of changes.
- Permit revisions trigger code upgrades not in original scope (egress, ADA, fire alarm). $30K–$150K.
- Material cost escalation between bid and procurement on a 14-week schedule. 2–6%.
The defensive moves at bid time: walk the space before pricing demo, get the M&E sub on a site walk before pricing MEP, verify the permit checklist with the building department before pricing soft costs, and carry contingency on top of GC contingency for occupied-building work.
Want this calibrated to your firm's actual TI numbers?
The benchmarks above are typical 2026 ranges. Your actual cost per square foot depends on your sub list, your markups, your region, and the kind of TI work you specialize in. BidFlow reads your last 3–5 TI estimates and builds a private cost library calibrated to your numbers — so your next bid starts from your real data instead of a generic average.
Upload 3–5 of your past TI estimates — BidFlow extracts your division-by-division pricing in 5 minutes. 14-day free trial. $99/month flat per company.
FAQs
Is $100/sf a fair benchmark for office TI in 2026?
For a standard mid-tier office TI in a US national-average market, $80–$110/sf is the typical all-in range including soft costs. High-cost metros (NYC, SF, Boston) run $130–$180/sf for the same scope. Low-cost metros (Memphis, Indianapolis, Phoenix) run $75–$95/sf. Apply your local city cost index to the table above.
How much should contingency be on a TI bid?
On a clean-scope TI with detailed drawings, 3% GC contingency on top of fee is typical. On a re-stack with selective demo and unknown existing conditions, carry 5–8% GC contingency plus publish a separate owner's contingency of 5%. Total project contingency on a re-stack should land 8–13% of construction cost.
Why is HVAC the largest single trade on a TI bid?
HVAC zoning rarely matches between two tenants. Re-stacking partitions almost always means re-zoning the floor, which means moving VAV boxes, adding ductwork, rebalancing the system, re-commissioning, and updating controls. On a 20,000 sf re-stack, HVAC commonly lands at $10–$15/sf or 11–14% of project cost.
What's the right GC fee on a $2M TI?
Standard commercial TI fee for a $2M project is 5–7% on lump sum, 4–6% on CM-at-risk. On smaller TIs ($500K–$1M) fee climbs to 8–10% to cover fixed bidding costs. See the GC fee benchmark report for the full project-size breakdown.
Ready to stop losing project details?
Keep every estimate, note, and approval in one timeline your whole crew can trust. Free to start.
Start Your Free ProjectBy · Last verified