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Real Estate Managers 8 min read

Infrastructure Budget Planning: Understanding Cost Drivers Before You Sign

Low voltage costs shouldn't be a surprise after you've signed a lease. Here's how to understand what drives costs and get early visibility during site selection.

Low voltage infrastructure often surprises real estate and finance teams during buildouts. What seemed like a straightforward cabling project turns into a budget overrun when existing conditions don't match assumptions. These surprises typically aren't contractor failures—they're planning failures that occur when infrastructure costs aren't properly scoped upfront.

Building budget predictability requires understanding what drives low voltage costs and how to assess those factors before committing to a space or a timeline.

Why Budgets Miss the Mark

Most budget misses trace back to one of three causes: relying on square footage estimates instead of actual scope, discovering existing conditions that weren't visible during site selection, or scope changes during construction that weren't properly managed.

Square footage estimates can work for rough planning, but they assume "typical" conditions that may not match your actual requirements or the specific building you're occupying. A 10,000 square foot space in a newer building with existing infrastructure may cost half as much to build out as the same square footage in an older building requiring new pathway construction.

Key Cost Drivers

Cable run lengths, pathway construction requirements, ceiling types, and existing infrastructure reuse all significantly impact low voltage costs. A space with accessible ceilings and existing cable trays costs less to cable than one requiring new conduit through concrete. A building with adequate power at IDF locations eliminates electrical work that might otherwise be required.

Understanding these factors during site selection—not after lease signing—gives you accurate budget projections and negotiating leverage with landlords.

Pre-Lease Infrastructure Assessment

A brief site walk with your low voltage contractor before signing a lease can identify the factors that will drive your buildout costs. Existing cable types, pathway conditions, power availability, and building access restrictions all become visible during a physical assessment that no floor plan review can provide.

For multi-location enterprises evaluating several potential sites, these assessments enable apples-to-apples comparisons of total occupancy cost—not just rent and common area charges.

The Reality of Infrastructure Costs

Here's what most articles won't tell you: low voltage costs vary significantly by geography. Labor rates in San Francisco differ dramatically from rural Texas. Union markets cost more than non-union. A cost-plus contractor passes through these real costs transparently—which means your budget will reflect actual market conditions, not a one-size-fits-all estimate.

The goal isn't to find a contractor who promises artificially low fixed prices (those usually lead to change orders or cut corners). The goal is early visibility: understanding what will drive costs at a specific site before you commit to the lease. A site walk with your national low voltage contractor surfaces the factors that will affect your budget—even if the exact numbers depend on local labor rates.

This transparency is actually valuable. When your contractor operates cost-plus, you see real costs without hidden markups. When they know your typical requirements, they can flag when a particular site will cost more than your norm—and explain why.

The Budget Blindspot

Most real estate teams evaluate sites based on rent, TI allowances, and location—but low voltage infrastructure can add $15-50 per square foot that's not in the initial pro forma. A national low voltage contractor can provide preliminary budgets during site selection to prevent surprises.

What Drives Low Voltage Costs

Existing infrastructure condition and reusability

Distance from IDF to workstations

Ceiling type and accessibility

Security requirements (access control, surveillance)

Special systems (A/V, digital signage)

Pre-Lease Assessment

Before signing, have your national low voltage installer conduct a site walk to identify:

Existing cabling that can be reused

Pathway availability and condition

IDF/MDF location requirements

Landlord restrictions or requirements

Building Budget Intelligence

After multiple buildouts with the same national workplace technology contractor, you develop institutional knowledge about what drives costs in different scenarios. You won't have a single per-square-foot number that works everywhere—labor rates vary too much for that—but you'll understand which site characteristics lead to higher costs and can factor that into site selection decisions.

The value of a national partner isn't magic pricing predictability. It's consistent process, transparent cost-plus billing, and a contractor who flags cost drivers early rather than surprising you with change orders mid-project.

Need Budget Estimates for Site Selection?

Axseter provides preliminary infrastructure budgets during your real estate evaluation process.

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