My company just spent $10M renovating an office but we’ve been in business for several decades and have been profitable every year for the past decade, I’m not sure about prior to that. It’s not always a bad idea to spend money on office space.

Tenant improvements (office remodels) are $75-$150/square foot these days depending on the level of finishes and FFE (furniture, fixtures, and equipment), and can go higher if you’re building out dozens of offices instead of open office space with perimeter private offices or want high end architectural lighting, aesthetic flourishes, etc. I know you can wire up a basic office with lights and receptacles for about $15/sqft if you use union labor and basic 2x4s/recessed cans for lighting.

My state allows 1 occupant per 150 gross sq ft of floor space (interior partitions, columns, and other items that occupy floor space are counted in gross square footage), so an office tower with a 22,500 sq ft floor plate allows for 150 occupants. At $100/sqft, you’re looking at $2.25M to build out a single floor of an office tower.

Depending on the market, the landlord might offer an allowance for tenant improvements or ‘pay’ for the improvements and they get paid back later over time through rent payments.