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Cost Reference

Commercial renovation costs in Toronto, 2026

Current per-square-foot cost ranges for office, medical, restaurant, retail, and specialty commercial spaces in Toronto and the GTA. Based on VNG's active project pipeline and current GTA labour and material rates.

All figures are all-in costs including permits, labour, and materials. Published June 2026.

By Space Type

Cost per square foot by
space type, GTA 2026

These are planning-level ranges. Actual cost depends on existing conditions, MEP scope, and finish selections. Use the breakdown below to estimate where your project falls.

Space Type Basic Mid-Range High-End
Office / Tenant Improvement $65-$95/sqft $95-$135/sqft $135-$185/sqft
Law / Finance / Compliance Office $110-$140/sqft $140-$175/sqft $175-$220/sqft
Medical Office / Dental Clinic $110-$145/sqft $145-$190/sqft $190-$260/sqft
Restaurant / Full Kitchen $100-$150/sqft $150-$200/sqft $200-$300+/sqft
Retail Fit-Out $65-$100/sqft $100-$145/sqft $145-$195/sqft
Pharmacy $100-$130/sqft $130-$165/sqft $165-$210/sqft
Licensed Childcare / Daycare $90-$120/sqft $120-$155/sqft $155-$200/sqft
Bank Branch / Financial Services $110-$145/sqft $145-$190/sqft $190-$250/sqft
Industrial Office Build-Out $55-$80/sqft $80-$115/sqft $115-$155/sqft

Ranges reflect all-in cost including general contractor overhead, permits, and all trades. Excludes furniture, IT infrastructure, and owner-supplied equipment. Figures are GTA-specific for 2026 market conditions.

Cost Drivers

Five factors that move your
renovation cost the most.

1. Existing Conditions

Second-generation space (previously built out, MEP in place) costs 25-40% less than a raw shell. If you can take a space that was previously an office and renovate it to an office again, you avoid full MEP rough-in and potentially avoid change-of-use permits.

2. MEP Scope

Mechanical, electrical, and plumbing work is the biggest line item on most commercial renovations. Adding plumbing to a floor that does not have it, upgrading an electrical panel, or running new HVAC branches can each add $15-$40 per square foot to the project cost.

3. Custom Millwork

A reception desk with stone countertop and feature lighting adds $15,000-$40,000 to a project. A law firm boardroom with custom built-ins can add $25,000-$60,000. Millwork is the primary lever between mid-range and high-end finishes.

4. Finish Specification

The difference between carpet tile and polished concrete is $8-$18 per square foot for flooring alone. Acoustic tile ceilings vs open-concept painted ceiling vs suspended feature system ranges from $4 to $22 per square foot. These choices compound across a large space.

5. Permit Complexity

A standard tenant improvement permit in Toronto costs $3,000-$8,000 in fees. A change-of-use permit can cost $8,000-$25,000 in fees and add 6-12 weeks to the schedule, which also adds carrying cost. Medical and assembly occupancies face additional fire and life safety review.

6. Schedule Compression

Fast-track delivery with extended hours, weekend shifts, and larger crews costs 10-20% more than a standard schedule. For most clients, the cost of compression is less than the cost of a delayed opening, lost rent on an unusable space, or a missed regulatory deadline.

By Project Size

Estimated total costs
for common project sizes.

These are mid-range estimates for a standard professional office fit-out. Adjust based on your space type and finish selection from the table above.

Project Size Mid-Range Office Medical / Dental Restaurant
1,500 sq ft $143K-$203K $218K-$285K $225K-$300K
3,000 sq ft $285K-$405K $435K-$570K $450K-$600K
5,000 sq ft $475K-$675K $725K-$950K $750K-$1M
8,000 sq ft $760K-$1.08M $1.16M-$1.52M $1.2M-$1.6M
12,000 sq ft $1.14M-$1.62M $1.74M-$2.28M $1.8M-$2.4M

Mid-range estimates only. Based on $95-$135/sqft for office, $145-$190/sqft for medical, and $150-$200/sqft for restaurant. Actual cost depends on existing conditions and scope.

Permit Costs Toronto 2026

What permits cost
in the GTA.

Permit fees are charged by the municipality based on project value. These are approximate ranges for 2026.

Standard TI Permit
$3K-$8K
Building permit for standard tenant improvement in existing commercial classification. Typical 6-10 week approval in Toronto.
Medical / Assembly Occupancy
$5K-$15K
Healthcare or Group A occupancy classification triggers additional fire and life safety plan review. Adds cost and 2-4 weeks to approval timeline.
Change-of-Use Permit
$8K-$25K
Required when space changes occupancy classification. Triggers full code review. Can add 6-12 weeks. Retail-to-medical and office-to-childcare are the most common.
Plumbing Permit
$800-$3K
Required for any new or modified plumbing. Separate from building permit. Typical for restaurant, medical, and pharmacy projects.
Common Questions

Renovation cost questions
answered directly.

Does the cost per square foot decrease for larger projects?

Partially. Overhead and mobilization costs are spread across more area, so large projects (8,000+ sq ft) can see 5-10% efficiency on some line items. However, MEP complexity typically increases with size, so the per-square-foot cost often stays within the same range. The biggest savings come from scope clarity and avoiding change orders, not from project size.

What is not included in a per-square-foot renovation quote?

Standard commercial renovation quotes from VNG include all construction labour and materials, permits, and general contractor management. Excluded are: furniture and workstations, IT and AV equipment, owner-supplied fixtures (ranges, refrigeration, etc.), signage, and security systems (though conduit and rough-in for all of these are included).

How do GTA renovation costs compare to 2024?

Commercial renovation costs in the GTA increased 8-12% between 2024 and 2026, driven primarily by skilled trade labour rates and drywall and steel stud material costs. Office costs were more stable than restaurant and medical, where MEP labour shortages are most acute. The ranges published here reflect current 2026 market conditions.

How accurate is a per-square-foot estimate?

A per-square-foot range is a planning tool, not a quote. Variance of 20-30% from the midpoint of a range is common based on existing conditions alone. The only accurate number is an itemized quote based on a site visit and specific scope. VNG provides itemized fixed quotes within 5 business days of a site visit, with no allowances. Every line item is explicit before you sign.

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