High finish premiums persist, despite flat growth

In 2025, our data showed minimal movement in average costs by finish level, reinforcing a trend of flat growth. High-finish projects rose slightly to $259/SF, driven by premiums for design complexity and infrastructure, while medium-finish costs dipped marginally, signaling that cost pressure is more concentrated at this level. Overall, the spread between low, medium and high finish remains largely unchanged.

Suburban markets remain more cost-effective, with shallower gaps between finish levels. High-finish projects average roughly $188/SF compared to $259/SF downtown, with similar differentials across other finish tiers. Lower suburban costs are consistently driven by several factors, including alternate subcontractor options, simpler building infrastructure, less stringent conduit requirements, fewer logistical challenges such as hoisting and material handling, and easier site access with less congestion, all of which contribute to shorter timelines and lower overall costs.

Downtown high-finish projects will continue to command a premium, while suburban markets maintain their cost advantages. As new Chicago developments take time to enter the pipeline, suburban opportunities may present a cost-effective interim strategy for some clients.