Cushman & Wakefield’s 2022 Americas Office Fit-Out Cost Guide found supply chain constraints and shifting consumer demands will continue to add pressure to costs, both in materials and labor.
Increases in construction and customer demand for durable and non-durable goods have driven supply chain disruptions over the past two years. COVID-19 outbreaks and labor shortages have also wreaked havoc through ports and on trucking, transportation, and distribution capacities. The supply chain stress indices for both China and the U.S. ended 2021 up over 40% from pre-pandemic levels.
For office construction and fit-outs, these stressors have created increased delays, greater uncertainty, and higher costs. There appears to be some light at the end of the tunnel, though,
as the supplier delivery index that measures manufacturer delays has been receding
since the middle of 2021, the report says.
The waning of the pandemic may add more fuel to cost pressures, however, as office tenants are targeting the first half of 2022 for employees to return to a more standard office attendance model. “As office space usage increases, we expect organizations will expand their piloting and testing of different types of layouts related to hybrid work,” the report says. “This is likely to increase the amount of fit-out and office space construction activity in the coming quarters, creating even more demand for materials and labor.”
Related Stories
Codes and Standards | Nov 15, 2017
NBI stretch code a tool for accelerating efficiency standards
It provides a strategy to leapfrog minimum code requirements.
Codes and Standards | Nov 14, 2017
California bill would require purchase of low-carbon construction products
Contractors would have to source products based on greenhouse gas impact, not price, on state projects.
Codes and Standards | Nov 13, 2017
New AIA contract document for facility support services released
Updated form intended to be used with owner-architect agreements.
Codes and Standards | Nov 9, 2017
NIBS, NBI issue guidance document to help communities achieve energy goals
Outcome-based codes compliance path looks at building’s actual performance.
Codes and Standards | Nov 7, 2017
Underwriters Laboratories launches wellness certification
First certification program that verifies products’ compliance with the WELL Building Standard.
Codes and Standards | Nov 6, 2017
Registration now open for Canada’s first Zero Carbon Building (ZCB) program
Standard is designed to be applicable across many types of new and existing buildings.
Codes and Standards | Nov 6, 2017
AIA releases new architect commissioning document
It will be used with the standard form for owner/consultant contracts.
Codes and Standards | Nov 2, 2017
ASHRAE releases new version of Thermal Comfort Standard
Update includes calculations from direct solar radiation.
Codes and Standards | Nov 1, 2017
Drone users can now get instant authorization from FAA
Skyward offers app to receive permission for low altitude flights.
Codes and Standards | Oct 31, 2017
Real estate giant launches global tenant health and wellness certification initiative
Tishman Speyer will use Fitwel health certification system to guide building improvements.
