Why Small Fitouts Aren’t Cheap

One of the biggest misconceptions in commercial interiors is that a smaller tenancy automatically means a much cheaper fitout.

On paper, it sounds logical. If a 120m² office costs $240,000, surely a 30m² tenancy should only cost around $60,000?

In reality, commercial fitouts rarely scale that way.

A 30m² fitout is often disproportionately expensive per square metre because many of the major costs in a project are fixed, regardless of size.

The Hidden Reality of Small Fitouts

Whether a tenancy is 30m² or 300m², there are certain baseline requirements that still need to happen:

• Design documentation

• Consultant coordination

• Approvals and certifications

• Electrical and hydraulic works

• Compliance upgrades

• Joinery

• Signage

• Site establishment

• Project management

• Trades mobilisation

• After-hours works (in some buildings)

• Fire compliance coordination

• Accessibility compliance

A small tenancy still needs a compliant bathroom. It still needs lighting, power, air conditioning coordination, exits, finishes, and often custom joinery.

The difference is that these costs are spread across fewer square metres.

The “Minimum Buy-In” Effect

Commercial construction has a minimum threshold where projects become viable for builders and trades.

A plumber doesn’t charge one-quarter of the price because the tenancy is one-quarter the size. The same applies to electricians, shopfitters, certifiers, and signage contractors.

There are mobilisation costs just to get trades onto site:

• Travel

• Setup

• Site inductions

• Administration

• Coordination

• Procurement

• Programming

These costs exist before a single wall is built.

That means a smaller project can sometimes feel surprisingly expensive relative to its footprint.

Joinery Often Drives Small Fitouts

In many compact tenancies, joinery becomes one of the largest cost contributors.

A small café, medical consult room, beauty clinic, or retail kiosk may still require:

• Reception joinery

• Storage

• Feature displays

• Integrated lighting

• Stone benchtops

• Appliances

• Custom detailing

You might have less floor area, but the amount of “stuff” packed into the space is often much higher.

In some cases, a highly detailed 30m² tenancy can cost more per square metre than a relatively simple 150m² office.

Services Don’t Shrink Proportionally

Mechanical, electrical, hydraulic, and fire services are another major factor.

A small tenancy still may require:

• Air conditioning alterations

• Fire sprinkler adjustments

• Smoke detector relocations

• Emergency lighting

• Exit signage

• Plumbing

• Hot water

• Grease arrestors

• Data and communications

Building compliance does not become simpler just because the tenancy is smaller.

In older buildings especially, small fitouts can trigger surprisingly complex upgrade requirements.

Per-Square-Metre Rates Can Be Misleading

People often ask: “What’s your fitout rate per m²?”

While benchmark rates can be helpful early on, they rarely tell the full story.

Two tenancies of the exact same size can have dramatically different costs depending on:

• Existing conditions

• Building services

• Accessibility requirements

• Level of finish

• Amount of custom joinery

• Structural constraints

• Landlord requirements

• Acoustic requirements

• Compliance upgrades

A small tenancy with premium finishes and complex services can easily exceed the per-m² rate of a much larger, simpler project.

Good Design Matters Even More in Small Spaces

Ironically, smaller spaces often require more design thinking, not less.

When every square metre matters, the planning needs to work harder:

• Efficient circulation

• Storage integration

• Multi-functional spaces

• Clever joinery

• Lighting design

• Spatial perception

• Compliance clearances

In compact environments, there is less room for mistakes.

That’s why thoughtful design and detailed documentation become even more important.

Final Thoughts

Smaller fitouts can absolutely have smaller overall budgets, but they are rarely “cheap” simply because the tenancy is small.

Commercial fitout costs are driven by complexity, compliance, services, and detailing far more than floor area alone.

A well-designed small tenancy can still deliver a huge impact for a business, but it’s important to approach budgeting with realistic expectations from the outset.

At Edit Interiors, we help clients understand where costs are actually coming from early in the process, so there are fewer surprises later during documentation, pricing, and construction.