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
Multifamily Housing | Dec 6, 2022
Miami-Dade County will allow accessory dwelling units
Commissioners in Miami-Dade County, Fla., recently voted to allow many single-family homeowners to rent out accessory dwelling units on their property. Many homeowners will be allowed to rent out garages, separate quarters, or detached backyard apartments if they meet certain standards including for lot size and parking.
Steel Buildings | Dec 6, 2022
2022 AISC Code of Standard Practice for Steel Buildings and Bridges released
The American Institute of Steel Construction recently released an updated revision of one of its flagship standards, the Code of Standard Practice for Steel Buildings and Bridges (ANSI/AISC 303-22). The code was last updated in 2016. The latest version is available as a free download at aisc.org/2022code.
Multifamily Housing | Dec 6, 2022
Support for multifamily rent control legislation grows as metros face big rent hikes
Steep rent increases during the pandemic recovery have spurred support for rent control legislation in several areas of the country.
Mass Timber | Dec 1, 2022
Cross laminated timber market forecast to more than triple by end of decade
Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.
Retail Centers | Nov 29, 2022
'Social' tenants play a vital role in the health of the retail center market
After a long Covid-induced period when the public avoided large gatherings, owners of malls and retail lifestyle centers are increasingly focused on attracting tenants that provide opportunities for socialization. Pent-up demand for experiences involving gatherings of people is fueling renovations and redesigns of large retail developments.
Multifamily Housing | Nov 29, 2022
Number of office-to-apartment conversion projects has jumped since start of pandemic
As remote work rose and demand for office space declined since the start of the Covid-19 pandemic, developers have found converting some offices to residential use to be an attractive option. Apartment conversions rose 25% in the two years since the start of the pandemic, with 28,000 new units converted from other property types, according to a report from RentCafe.
Seismic Design | Nov 16, 2022
SPC-4D: 7 reasons California hospital building owners should act now to meet seismic compliance
Seismic compliance with the applicable California building codes is onerous and disruptive for building owners, especially for a building in the heavily regulated sector of healthcare. Owners of older buildings that house acute care services have a big deadline on the horizon—Jan. 1, 2030, the cutoff date to upgrade their buildings to SPC-4D.
Green | Nov 13, 2022
USGBC updates LEED v4 to better address greenhouse gas emissions and climate change
The U.S. Green Building Council (USGBC) will update the LEED v4 green building certification program to “more directly address greenhouse gas emissions and climate change” according to a USGBC news release.
Green | Nov 13, 2022
NREL report: Using photovoltaic modules with longer lifetimes is a better option than recycling
A new report from the U.S. National Renewable Energy Laboratory (NREL) says PV module lifetime extensions should be prioritized over closed-loop recycling to reduce demand for new materials.
Green | Nov 13, 2022
Global building emissions reached record levels in 2021
Carbon-dioxide emissions from building construction and operations hit an all-time high in 2021, according to the most recent data compiled by the Global Alliance for Buildings and Construction.
