The real cost of your next office

Rent is the number you see. Not the cash you need.

Most of the cash required for a new office goes out before move-in—and never appears on the rent quote. This iceberg shows where it goes, using a 19,000-square-foot San Francisco office as the baseline.

A market baseline, not a prediction. These are illustrative planning figures—not a quote or budget. Your building, scope, company profile and negotiated terms will change the outcome.

Scroll to see what's under the water
Five more costs sit under this line. Rent in year one $808K · $85/SF a year, 11% of year one Construction and design $3.33M · $175/SF after the landlord's $75/SF allowance Furniture $760K · $40/SF Technology and security $665K · $35/SF Move and transition $599K · $32/SF, including 9 months carrying your current office Security deposit $1.21M · 9 months of rent, held for the term $6.56M leaves your account before your first rent check Five more costs sit under this line. Rent in year one $808K · 11% of year one Construction and design $3.33M · $175/SF after the landlord's allowance Furniture $760K · $40/SF Technology and security $665K · $35/SF Move and transition $599K · $32/SF, incl. 9 months of your current rent Security deposit $1.21M · 9 months of rent $6.56M out before your first rent check

Same building, three ways to take it.

A furnished sublease, a suite the landlord already built, or raw space you build yourself. Move the sliders and watch the icebergs re-scale. Each one is a market planning case, not a project budget; the waterline is where rent stops and everything else begins.

About 140 square feet per person for a tech team.
Applies to the suite and the build-out. A sublease runs on the sublandlord's remaining term.
The suite prices a little above this; a furnished sublease a little below.
On the build-out. Construction and design run about $250 per SF; what the landlord doesn't cover, you do.
From market baseline to company plan

The baseline is not the outcome.

This model uses broad San Francisco market assumptions to show the full exposure before a specific building, deal or scope is known. It is intentionally complete and conservative. It is not a budget, a quote or what we expect every tenant to spend.

Resource's work starts here. We compare lower-capital ways to take space, negotiate the deal, challenge unnecessary scope, reuse what makes sense and sequence the move to limit double rent.

Avoid

Choose furnished or prebuilt space, reuse what already works and remove scope the team does not need.

Negotiate

Improve rent, free rent, the landlord's contribution, the deposit and the delivery terms.

Control

Benchmark bids, right-size specifications and align the move so two offices overlap for less time.

Some costs can be reduced. Some can be shifted to the landlord. Some can be avoided entirely.

What's below the line.

Five things you pay for before your first rent check, with the ranges we see in San Francisco this year for a floor of roughly 19,000 square feet.

Construction and design$160 to $190 per SF after the allowance

A full build-out in a San Francisco tower runs about $225 to $275 per square foot in 2026, the highest in the Americas. The landlord contributes an allowance, but on a five-year lease it is usually $60 to $90 per SF, not the $125 to $150 you see quoted on ten-year deals. The gap is yours. Design, engineering and city permits add roughly 10% on top, and San Francisco's permit fees alone come to about $60,000 on a project this size.

What tenants forgetThe allowance is paid out as reimbursements against invoices, so you front the cash first. Ask whether it can cover design fees, cabling and signage, and whether the landlord charges a supervision fee on top.
What changes the numberStart with a furnished or prebuilt space, keep useful improvements, right-size the scope and negotiate a larger contribution or landlord-delivered work.
Furniture$35 to $60 per SF

New workstations, task chairs, conference tables, lounge and café pieces. A mid-range setup for a tech team lands at $2,500 to $5,000 per person, or $35 to $60 per square foot once meeting rooms and common areas are counted. Lead times of 8 to 14 weeks are normal, which is why furniture, not construction, often sets the move-in date for a prebuilt suite.

What tenants forgetA furnished sublease is the only option where this line is close to zero. Inspect what's included in writing; "furnished" can mean desks and chairs and nothing else.
What changes the numberTake a furnished space, reuse existing pieces, standardize the furniture package and phase purchases that are not needed on day one.
Technology and security$28 to $44 per SF

Cabling is the cheap part at $2 to $9 per SF. The rest is video-conferencing in every meeting room, an all-hands space, network gear, a cooled equipment room, Wi-Fi, door access and cameras. Cushman & Wakefield's 2026 guide puts AV and IT together at $28 to $44 per SF in San Francisco. Fiber circuits cost little but take 60 to 90 days to deliver; order them the day you sign.

What tenants forgetThe network is not the cabling. Switches, firewalls, access points and a UPS are a separate $75,000 to $175,000 purchase, and the equipment room needs cooling that runs when the building's HVAC doesn't.
What changes the numberTest what cabling and equipment can stay, right-size meeting-room technology and security, and price the complete system before the lease is final.
Move and transition$150,000 to $700,000

Moving and IT cutover ($30,000 to $80,000), restoring the office you're leaving ($25,000 to $100,000), legal fees on the new lease ($25,000 to $75,000), and the line that changes the whole comparison: rent on your current space while the new one is built. A 7 to 12 month build-out means paying for two offices, and if your old lease ends first, holdover rent typically runs 150% to 200%.

What tenants forgetRead the surrender clause of the lease you're leaving before you sign the next one. Cabling removal and restoration are owed under the old lease and never appear in the new budget.
What changes the numberAlign the new delivery with the old lease, negotiate early access and free rent, choose a faster-to-occupy option and settle restoration scope early.
Security deposit6 to 12 months of rent

Landlords size the deposit to what they have at risk: the allowance, free rent and commissions. For a venture-backed company taking a large allowance, that means 9 to 12 months of rent, usually as a letter of credit that your bank backs with 100% cash collateral. It is refundable, but it is not runway. Banks charge 1% to 3% a year on top.

What tenants forgetNegotiate a burn-down: the deposit steps down after two or three years of on-time payments. Without one, the full amount stays locked up for the term.
What changes the numberCreate competition between landlords, show the company's financial position clearly, cap the initial deposit and negotiate when and how it steps down.

Get your planning range.

Tell us two things and we'll size a market baseline for all three options. Pierce or Andrew will then replace the broad assumptions with real buildings, scope choices and negotiated deal terms.

Used to estimate the cost of carrying your current space during a build-out.

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How we got these numbers.

Every market input on this page comes from a published 2025–2026 source or from a lease we negotiated. We use those inputs to size the exposure before a building and deal are known—not to predict your result.

  1. Cushman & Wakefield, San Francisco Office MarketBeat, Q2 2026. Class A CBD asking rent $76.60; sublease vacancy at its lowest since 2020.
  2. Cushman & Wakefield, Americas Office Fit Out Cost Guide 2026 (March 2026). San Francisco hard cost $228 per SF; AV and IT $28 to $44; soft costs 10%.
  3. Newmark, San Francisco Office Market Report, 2Q 2026. Sublease availability 4.1% of inventory, down from 10.8% at the 2023 peak.
  4. CBRE, San Francisco Office Figures, Q2 2026. AI companies account for about 30% of leasing since 2023.
  5. JLL, U.S. and Canada Office Fit-Out Costs Guide 2026 (May 2026). Security, IT and AV at 10 to 12% of fit-out cost.
  6. CBRE, national concessions study (March 2025). Average landlord allowance $87.51 per SF; free rent 8.9 months.
  7. The Real Deal, June 2026. Sublease inventory down from nearly 10 million SF to about 3.4 million; landlords asking AI tenants for deposits of up to three years.
  8. San Francisco DBI, proposed FY2026 fee schedule (January 2025). Plan review and permit fees on a $4.3 million alteration.
  9. Avison Young via The Real Deal, November 2024. San Francisco landlord allowances of $135 to $147 per SF on ten-year deals.
  10. 7NOX, tenant guide to after-hours HVAC charges (June 2026). $25 to $150 per hour per zone.
What the model assumes. One building in the Financial District, roughly 19,000 square feet, current asking terms rather than a quote. Asking rent of $85 per SF on the build-out, $92 on the prebuilt suite and $65 on the sublease. Free rent of 2, 3 and 6 months. A $75 per SF landlord allowance against $250 per SF of construction and design on a five-year term. Deposits of 4, 6 and 9 months of rent, as a venture-backed tenant should expect. A current office costing $50,000 a month, carried during the transition. These broad assumptions create a planning baseline, not an expected client outcome. Move the sliders above to test them; Pierce or Andrew can replace them with real buildings, scope and negotiated terms.

Furnished subleases are getting scarce. Start early enough to have the choice.

Resource represents tenants only, never landlords. We'll tell you what your space will really cost before you fall in love with it.

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