How to Budget for a Commercial Renovation in the GTA

Most commercial renovation budgets fail because they account for the obvious costs and miss the ones that do not show up until the project is underway. This guide walks you through how to build a realistic budget for a commercial renovation in the Greater Toronto Area, including the line items that catch people off guard.

Step 1: Start With the Right Cost Range

Before you get a formal quote, you need a rough budget to evaluate feasibility. Here are 2026 cost ranges per square foot for common commercial spaces in the GTA:

• Office (basic): $75-95/sq ft
• Office (mid-range): $95-130/sq ft
• Office (high-end): $130-185/sq ft
• Medical / dental: $110-260/sq ft
• Restaurant: $100-270/sq ft
• Retail: $65-160/sq ft
• Industrial office: $55-95/sq ft

Multiply your square footage by the appropriate range to get your starting budget window.

Step 2: Add the Costs People Forget

Design Fees

Architectural and engineering design fees typically run 8-15% of construction cost. A $300,000 renovation will need $24,000-45,000 in design fees. Some landlords cover this. Most do not.

Permit Fees

Municipal permit fees in the GTA are typically $3,000-8,000 for a standard commercial renovation. Complex projects or change-of-use applications can run higher.

Furniture, Fixtures, and Equipment (FF&E)

FF&E is not part of the construction contract but is a major cost. Office furniture, medical equipment, restaurant kitchen equipment, and signage all need to be budgeted separately. For offices, budget $3,000-8,000 per workstation for furniture. For restaurants, kitchen equipment can run $50,000-200,000 depending on the menu.

Technology and Cabling

Data cabling, network infrastructure, access control systems, and AV equipment are often outside the construction scope. Budget $8-15 per square foot for data cabling and $5,000-15,000 for access control on a typical office.

Moving and Temporary Space

If you are relocating from another space, moving costs and potential temporary space rental need to be in the budget. Commercial moves in the GTA typically run $5,000-20,000 depending on the size and complexity.

Signage

Exterior signage, suite identification, wayfinding, and directory listings. Budget $2,000-15,000 depending on the building type and landlord requirements.

Step 3: Build In a Contingency

Every commercial renovation budget should include a contingency line. The appropriate amount depends on the risk profile:

• New build in a shell space: 5-10% contingency. Fewer unknowns.
• Second-gen renovation: 10-15% contingency. Existing conditions may differ from what is visible before demolition.
• Heritage or older building: 15-20% contingency. Higher probability of surprises behind walls.

Contingency is not a slush fund. It is insurance against conditions you cannot see until construction begins: asbestos, outdated wiring, undersized plumbing, structural conditions that differ from drawings.

Step 4: Understand What Your TI Allowance Covers

If your landlord is providing a tenant improvement (TI) allowance, understand exactly what it covers. Most TI allowances cover hard construction costs only. They typically do not cover:

• Design fees
• Permit fees
• FF&E
• Technology infrastructure
• Moving costs
• Signage

A $50/sq ft TI allowance on a 3,000 sq ft space gives you $150,000 for construction. But the total project cost including design, permits, furniture, and technology may be $220,000-280,000. The gap is your responsibility.

Step 5: Get an Itemized Quote

The most reliable way to finalize your budget is to get an itemized quote from a qualified commercial renovation contractor. A good quote breaks down every trade, every material, and every scope item individually. It lists exclusions explicitly so you know exactly what is and is not included.

Avoid quotes that use allowances (for example, "$15,000 allowance for millwork"). Allowances mean the contractor has not priced the actual scope. They are placeholders that almost always result in cost overruns.

VNG provides fully itemized quotes with no allowances. Every line item is specific, priced, and accountable. Request a quote to get a real number for your project.