Commercial Renovation Costs in Vancouver for Small Business Owners

Cost ranges by commercial project type

Commercial renovation costs vary more than residential because the code requirements, mechanical systems, and finish levels differ dramatically between project types. These are per-square-foot ranges for construction costs in Metro Vancouver in 2026:

• Basic tenant improvement (partitions, paint, flooring, lighting): $40 to $80/sq ft
• Professional office (new layout, data cabling, upgraded HVAC, quality finishes): $80 to $150/sq ft
• Retail store fit-out (storefront, display fixtures, lighting design, signage): $60 to $120/sq ft
• Restaurant build-out (kitchen, ventilation, plumbing, fire suppression, finishes): $150 to $350+/sq ft
• Medical/dental clinic (specialized plumbing, imaging rooms, sterilization areas): $120 to $250/sq ft
• Brewery/taproom (floor drains, specialized ventilation, cooler rooms, high-capacity electrical): $130 to $280/sq ft
• Salon or spa (multiple plumbing stations, ventilation for chemicals, waterproofing): $90 to $180/sq ft

Breaking down costs by trade

The per-square-foot number is useful for initial budgeting, but it hides a lot. Here's where the money actually goes on a mid-range commercial renovation: say, a 2,500 sq ft professional office at $120/sq ft ($300,000 total budget).

Mechanical (HVAC) is almost always the biggest line item on commercial work. A new rooftop unit (RTU) for a 2,500 sq ft space runs $18,000 to $35,000 installed. Ductwork modifications (rerouting supply and return to match the new layout) add $8,000 to $15,000. If the building has an older system and you need to tie into it or zone it for your space, expect another $5,000 to $10,000 for controls and balancing. All in, mechanical typically eats 15 to 25% of a commercial renovation budget.

Electrical comes in second. A standard office needs new panel capacity or a sub-panel ($3,000 to $6,000), lighting ($15 to $30/sq ft installed for modern LED), data and power rough-in for workstations ($800 to $1,500 per drop), and code-required emergency lighting and exit signs ($2,000 to $4,000). For a restaurant, the electrical bill jumps: commercial kitchen equipment needs dedicated 208V or 480V circuits, and a single pizza oven can require a 60-amp breaker.

Plumbing on a basic office is minimal, maybe a kitchenette and a washroom or two. Budget $8,000 to $15,000. On a restaurant, plumbing is a different animal. Grease interceptors ($5,000 to $12,000 installed), floor drains throughout the kitchen, a three-compartment sink, separate handwash stations, and hot water capacity for a commercial dishwasher. Restaurant plumbing often runs $25,000 to $60,000.

Finishes (flooring, paint, millwork, ceiling tile) make up 20 to 30% of most commercial budgets. Commercial-grade LVP flooring runs $6 to $10/sq ft installed. Polished concrete is $4 to $8/sq ft if the existing slab is in decent shape. Suspended acoustic ceiling tile (2x4 grid) runs $5 to $9/sq ft installed. Drywall partitions with taping and paint cost $8 to $14 per linear foot for a standard 9-foot wall.

Common commercial elements and what they cost

Certain items show up on almost every commercial project and they carry real cost. Knowing these numbers ahead of time prevents sticker shock at the bid stage.

• Demising walls (walls between tenant spaces, typically fire-rated): $25 to $45 per linear foot for a 1-hour rated assembly, $40 to $65 for 2-hour rated
• Fire-rated door assemblies (required at exits, corridor separations, and between tenants): $1,800 to $3,500 per opening including frame, hardware, and closer
• Commercial storefront glazing (aluminum frame with tempered glass): $80 to $150 per sq ft of glass area
• Commercial entry doors (aluminum and glass, ADA-compliant hardware): $3,000 to $6,000 per opening
• Accessible washroom build-out (to current BC Building Code): $12,000 to $22,000 per washroom
• Fire alarm system tie-in (connecting your space to the building's main panel): $3,000 to $8,000 depending on the number of devices
• Sprinkler head relocation (moving heads to match new ceiling layout): $300 to $600 per head, plus engineer review
• Commercial-grade LED lighting package (troffer or linear): $15 to $30/sq ft installed

Why restaurants cost more than everything else

Restaurant build-outs are the most expensive commercial renovations per square foot, and it's not even close. A 2,000 sq ft restaurant might cost $300,000 to $700,000 to build out. The reason is mechanical systems.

A commercial kitchen requires Type 1 exhaust hoods over cooking equipment, makeup air units to replace the exhausted air, fire suppression systems in the hood, grease traps, dedicated electrical circuits for commercial appliances, and gas lines with separate shut-offs. The hood and ventilation system alone can cost $40,000 to $80,000. The makeup air unit (which has to heat or cool the replacement air to keep the kitchen livable) adds another $15,000 to $30,000.

Then there's Vancouver Coastal Health. Before a restaurant can open, it needs health authority approval, which means the kitchen layout, food prep areas, handwashing stations, and waste handling all need to meet their standards. Getting this wrong means redesign and rebuild. RealDream coordinates health authority requirements from the design phase, not as an afterthought after construction.

And don't forget the front of house. A decent bar build-out with plumbing, refrigeration lines, a glass washer, and millwork runs $20,000 to $50,000. Banquette seating with custom upholstery costs $400 to $800 per linear foot. By the time you add the point-of-sale infrastructure, sound system rough-in, and washroom finishes that match the brand, the dining room is carrying serious cost too.

Shell space vs. second-generation space

This distinction affects your budget more than almost anything else, and a lot of first-time commercial tenants don't understand it until they're already committed to a lease.

Shell space (also called vanilla shell or white box) is a raw unit: bare concrete floor, exposed structure above, maybe a basic washroom and HVAC stub. Everything else is on you. You're building the walls, ceiling, lighting, full HVAC distribution, all finishes, and possibly even the electrical panel. Shell build-outs in Metro Vancouver typically cost 30 to 50% more than fitting out a second-gen space because you're starting from zero.

Second-generation space is a unit that was previously occupied. It already has walls, a ceiling grid, lighting, HVAC ducts, washrooms, and possibly even a kitchen exhaust if the last tenant was a restaurant. The advantage is obvious. You're modifying, not building from scratch. A second-gen office that needs a new layout, fresh finishes, and updated lighting might cost $60 to $90/sq ft. The same scope in a shell space could be $100 to $140/sq ft.

But second-gen space has its traps. The previous tenant's layout might not work for you, and demolition of existing partitions, ceiling, and flooring adds cost. If the HVAC was designed for a different layout, reworking it is expensive. And if the space was a restaurant last and you're opening a yoga studio, you might be ripping out grease ducts, decommissioning gas lines, and patching a floor full of drains. Sometimes a shell is actually cheaper when the demo and remediation costs of a second-gen space stack up.

How building age affects commercial renovation costs

The age of the building is one of the biggest cost variables, and it's the one most business owners overlook when they're touring spaces and comparing lease rates.

Buildings constructed before 1990 frequently have asbestos in drywall compound, pipe insulation, floor tile, and ceiling texture. Before any demolition can happen, a qualified environmental consultant has to test suspect materials. If asbestos is found (and on the North Shore, it usually is in pre-1990 buildings), abatement is required before construction begins. Abatement on a 2,000 sq ft commercial unit can run $8,000 to $25,000 depending on the scope and materials involved. That's money spent before a single wall goes up.

Older buildings also tend to have undersized electrical service. A 1970s strip mall unit might have 100-amp service that was fine for the original tenant but can't handle a modern kitchen or a dental clinic's imaging equipment. Upgrading the electrical service (which may require the landlord's involvement and possibly a BC Hydro service upgrade) can cost $10,000 to $30,000 and add weeks to the timeline.

Plumbing in older buildings is another concern. Galvanized steel drain lines corrode over decades. Cast iron stacks develop cracks. If you're tying into aging plumbing infrastructure and something fails during construction, you're now fixing the building's plumbing on your dime (or negotiating with a landlord who may not move quickly). We always recommend a plumbing scope and camera inspection before committing to a space in any building over 30 years old.

On the flip side, newer buildings (post-2010) tend to have better base building systems, more electrical capacity, and cleaner infrastructure. The lease rate might be higher, but the build-out cost can be significantly lower. Factor both when you're comparing spaces.

Base building condition: what to check before signing a lease

We get calls from business owners who have already signed a lease and are now discovering problems that will blow their renovation budget. A few hours of due diligence before you commit can save tens of thousands of dollars.

Before you sign, have your contractor walk the space with you. Here's what we check:

• Electrical panel capacity: is there enough amperage for your intended use? A 200-amp panel is standard for most commercial tenants. Restaurant and medical use often needs 400 amps or more
• HVAC condition and capacity: is the existing system adequate, or will you need supplemental cooling or a new unit? How old is the rooftop unit: replacement runs $15,000 to $40,000
• Plumbing infrastructure: where are the main drains? Is there enough capacity for your fixtures? How far are you from the sewer connection?
• Fire protection: does the space have sprinklers? Are they the right type and spacing for your occupancy classification?
• Structural condition: any signs of water damage, foundation settlement, or deterioration that could complicate construction?
• Environmental hazards: is there visible mold, suspected asbestos, or lead paint? Have previous environmental assessments been done?
• Ceiling height: is there enough clearance above the finished ceiling for HVAC ducts, sprinkler mains, and lighting? Low ceilings limit your options and increase mechanical costs
• Loading and access: can materials and equipment be delivered easily? A second-floor unit with no freight elevator adds cost to every phase of construction

Tenant improvement allowances and how they work

If you're leasing a commercial space, your landlord may offer a tenant improvement (TI) allowance: a dollar-per-square-foot contribution toward your build-out. In Metro Vancouver in 2026, TI allowances typically range from $15 to $50/sq ft for standard office or retail space, and $50 to $100/sq ft for restaurant or medical spaces.

The TI allowance rarely covers the full build-out cost. A $40/sq ft allowance on a 2,000 sq ft office is $80,000. If your build-out costs $120/sq ft, you're covering the remaining $160,000. Understanding this math before you sign the lease avoids the unpleasant surprise of a funding gap after you've committed to the space.

One thing tenants don't always realize: TI allowances are usually disbursed on a reimbursement basis after work is completed, not upfront. You need to fund the construction and then submit invoices to the landlord for reimbursement. Some landlords require lien holdbacks, inspection sign-offs, or proof of permit closure before they release funds. Cash flow planning matters: talk to your contractor and your accountant before construction starts.

We work with tenants to scope projects within or close to the TI allowance where possible. When the budget needs to stretch, we prioritize the work that directly affects your business operations and customer experience, and we identify items that can be phased or simplified without compromising the space.

Permits and timelines for commercial renovation in Vancouver

Commercial building permits in the City of Vancouver go through Development Services. Processing times depend on the scope: straightforward TI work (no structural, no change of use) typically clears in 6 to 10 weeks. Projects involving structural changes, new openings in fire-rated walls, or change of occupancy can take 3 to 5 months.

In North Vancouver, commercial permits go through the same building department as residential but are reviewed under Part 3 of the BC Building Code (commercial) rather than Part 9 (residential). The review criteria are different: fire separations, exit requirements, accessibility, and commercial ventilation all get scrutinized. The District of North Vancouver and the City of North Vancouver are separate jurisdictions with separate permit departments, and their processing times differ. The City tends to be faster; the District's queue can be longer, especially if you're in an area with active development.

Construction timelines for commercial work are typically faster than residential because business owners are motivated by the cost of not being open. A basic TI fit-out runs 4 to 8 weeks. A restaurant build-out takes 10 to 16 weeks. An office renovation with moderate complexity runs 6 to 12 weeks. These assume permits are in hand before construction starts. Every week of permit delay is a week of rent with no revenue.

Insurance requirements during commercial construction

Insurance on commercial renovation projects is more involved than residential, and the requirements often catch tenants off guard.

Your general contractor should carry commercial general liability (CGL) insurance: $5 million is standard in Metro Vancouver for commercial work. They should also carry builder's risk insurance that covers the work in progress against fire, water damage, theft, and vandalism. As the tenant, you may be required by your lease to carry your own CGL policy naming the landlord as additional insured during construction.

If you're renovating a space you already occupy (say, refreshing a retail store while continuing to operate), your existing business insurance may not cover construction activities. A contractor's crew using a grinder that sparks a fire isn't covered under your standard commercial property policy. Talk to your broker before work starts and make sure there are no gaps.

Your landlord will almost certainly require a certificate of insurance from your contractor before allowing any work to begin. The certificate needs to name the landlord (and often the property management company) as additional insured. This is standard, but getting the certificate issued can take a few days, so don't leave it to the last minute.

How costs differ across Metro Vancouver municipalities

Construction costs aren't uniform across the region, and the differences matter when you're choosing a location for your business.

The City of Vancouver has the highest commercial renovation costs in Metro. Labour rates are the same region-wide, but permit fees are higher, processing times are longer, and the city's requirements around accessibility, energy efficiency, and seismic upgrading are more stringent than the suburbs. Parking costs for trades, material delivery restrictions in certain zones, and the general logistical friction of working in a dense urban core add 5 to 10% to project costs compared to suburban locations.

North Vancouver (both the City and the District) sits in the middle. Permit fees are reasonable, the building departments are accessible, and logistics are manageable. The North Shore does have geographic constraints: getting materials across the bridge during peak traffic adds some cost, and certain areas like Lower Lonsdale have tight parking that complicates construction access. But overall, commercial renovation costs on the North Shore run about 5% less than the City of Vancouver.

Further out (Burnaby, Surrey, Langley, Coquitlam) costs drop another 5 to 10%, mostly due to easier logistics, more available parking for trades, and generally smoother permitting. The trade-off is that some subtrades are based in Vancouver or the North Shore and charge a travel premium to go to the Valley.

For a 2,500 sq ft office renovation that would cost $300,000 in the City of Vancouver, expect roughly $280,000 to $290,000 in North Vancouver and $260,000 to $280,000 in the eastern suburbs. The gap widens on larger projects.

Supply chain and tariffs in 2026

If you've been tracking the news, you know that cross-border trade between Canada and the US has been volatile. As of early 2026, tariffs on US-manufactured building products have pushed prices up on a number of common commercial materials. Steel studs, certain insulation products, commercial lighting fixtures, and some HVAC equipment that's manufactured or assembled in the US are 10 to 25% more expensive than they were in 2024.

The practical impact on a commercial renovation depends on what the project needs. A basic TI with Canadian-sourced drywall, flooring, and paint is barely affected. A restaurant build-out that requires US-manufactured kitchen hoods, fire suppression components, and specialized HVAC equipment is feeling the pinch. We've seen $5,000 to $15,000 in added cost on mid-sized projects just from tariff-related price increases on specific equipment.

Lead times have also shifted. Some commercial HVAC units that used to ship in 4 to 6 weeks are now at 8 to 12 weeks. Certain commercial door hardware is on 10 to 14 week lead times. We're ordering long-lead items earlier in the project and, where possible, specifying Canadian or European alternatives that aren't subject to the same tariffs. It takes more coordination upfront, but it keeps timelines and budgets from drifting.

Phased renovation for businesses that can't close

Not every business can shut down for eight weeks while the space gets renovated. If you're a restaurant doing $15,000 a week in revenue, closing for two months costs you $120,000 in lost sales on top of the construction bill. Some businesses (medical clinics, for example) have patients who need continuity of care and can't simply reschedule for two months.

Phased renovation is the answer, but it costs more and takes longer than doing everything at once. The premium is typically 15 to 25% over a single-phase approach because of the added complexity: temporary walls and dust barriers, after-hours work, protecting existing finishes, working around operating hours, and the inefficiency of mobilizing and demobilizing crews multiple times.

Here's how we typically phase commercial work for an operating business. Phase one handles the back-of-house: mechanical room, kitchen, storage, staff areas. The business operates from the front while the back gets rebuilt. Phase two flips it: the back-of-house is operational, and the front gets renovated. Phase three, if needed, handles the transition zone and final details.

The key to phased work is planning. Every phase needs its own scope, its own schedule, and its own set of inspections. Dust control is critical, especially in food service or medical environments where contamination isn't just annoying, it's a health authority violation. Temporary HVAC zoning, sealed barriers, and negative air pressure in the construction zone are standard on phased commercial work. Budget for it upfront rather than improvising on site.

Common budget overruns and how to prevent them

After 15+ years of commercial renovation work, we see the same budget busters over and over. Most of them are preventable.

The biggest one is scope creep. The project starts as a basic TI: new walls, paint, flooring, lighting. Then the owner decides they want a custom reception desk. Then the washrooms need upgrading. Then the HVAC needs a new zone. Each change is individually reasonable, but collectively they can add 20 to 40% to the budget. The fix is a locked scope before construction starts and a formal change order process for anything new. Every change gets priced and approved in writing before the work happens.

Hidden conditions are the second most common overrun. You open a ceiling and find the ductwork is undersized. You start demolishing a wall and discover it's structural. The floor slab has cracks that need repair before new flooring goes down. This is why we budget 10 to 15% contingency on every commercial project, not because we're bad at estimating, but because buildings hide things. On older buildings (pre-1980), we recommend 15 to 20% contingency.

Permit delays cause a different kind of cost overrun, not in construction dollars, but in rent and lost revenue. If you're paying $8,000/month in rent and the permit takes two months longer than expected, that's $16,000 in occupancy cost with no revenue. We submit permits early, follow up regularly, and build realistic permit timelines into the project schedule rather than assuming best-case processing.

Owner-supplied items are another common problem. The tenant wants to buy their own light fixtures, or their own flooring, or their own kitchen equipment. That's fine, but when those items arrive late, damaged, or wrong, the construction schedule takes the hit. We need owner-supplied items on site and inspected before the relevant phase of work begins. Not the day of.

How RealDream approaches commercial cost estimation

We don't do ballpark pricing over the phone. It doesn't serve anyone. A business owner who gets a rough number and makes lease decisions based on it is in trouble when the real estimate comes in 40% higher.

Our process starts with a site visit. We look at the space, assess the base building condition, review the lease requirements, and understand the business operation. What are you doing in this space? How many people work here? What equipment do you need? What does the customer experience look like? The answers to these questions shape the scope before we ever put a number on paper.

From there, we develop a detailed scope of work with our subtrades. We get real pricing from our mechanical, electrical, and plumbing contractors, not allowances or guesses, but quoted numbers based on the actual space and the actual requirements. This takes 1 to 2 weeks, but it produces a budget you can rely on.

We present the estimate broken down by trade and by area so you can see where the money goes. If the number is higher than expected, we work through value engineering options together (alternative materials, simplified details, phased approaches), until the scope and the budget align. And we carry that detailed breakdown through construction so you can track spending against the estimate in real time.

We have been doing commercial renovation work across the North Shore and Metro Vancouver for years. We've built out restaurants on Lonsdale, offices in the Marine Drive corridor, retail spaces in Edgemont, and clinics in Lynn Valley. We understand the local permitting landscape, we have long-standing relationships with reliable subtrades, and we know what things cost here, not in Toronto, not in a national database, but right here on the North Shore.

What business owners should know before starting

Get a clear understanding of your lease before you design the renovation. Some leases restrict the type of work you can do, require landlord approval for plans, or specify that improvements become the landlord's property at lease end. Others require you to restore the space to its original condition when you leave, which means budgeting for demolition at the back end. A make-good clause on a $200,000 build-out can cost $30,000 to $60,000 to fulfill, and that number should be part of your overall cost analysis, not a surprise five years from now.

Budget 10 to 15% contingency on top of the construction estimate. Commercial spaces have the same surprise factor as residential: you open a wall and find outdated wiring, asbestos, or plumbing that doesn't meet current code. The contingency isn't pessimism. It's reality.

Talk to your contractor before you sign the lease, not after. We can tell you (often within a single site visit), whether a space is a good candidate for your intended use, what the likely build-out cost will be, and what red flags to watch for. That information is worth far more before you're locked into a 5-year lease than after.

And start the permit process early. The single biggest delay on commercial renovation projects isn't construction. It's permitting. If your lease starts May 1 and you don't submit for permits until May 15, you could be paying rent until August or September before construction even begins. Submit permits during the lease negotiation period whenever possible. Every week you save on the front end is a week of revenue on the back end.