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 | Feb 18, 2020
Recent Dept. of Energy grants emphasize grid-interactive building technology
National labs, universities, businesses selected for total of $74 million in funding.
Codes and Standards | Feb 14, 2020
At least 13 states create incentives for utilities to use demand response programs
Practice optimizes power grid, incorporates more renewable power.
Codes and Standards | Feb 13, 2020
Living Future Institute’s JUST program helps measure progress on sustainability, social justice
Functions as a transparency platform for organizations to disclose their operations.
Codes and Standards | Feb 12, 2020
Commercial Building Energy Saver Wins R&D 100 Award
Software toolkit enables access to deep energy retrofit and zero-net energy strategies.
Codes and Standards | Feb 11, 2020
Fenestration Rating Council launches faster energy performance testing system
New windows, doors, and skylights will get to market faster.
Codes and Standards | Feb 7, 2020
Landlords scramble to comply with the New York City Council’s Climate Mobilization Act (CMA)
Intent is to reduce greenhouse gas emissions; improve efficiency for buildings larger than 25,000 sf.
Codes and Standards | Feb 6, 2020
New document to determine THERM finite element modeling surface temperatures released
Process often used to predict interior surface temperatures on fenestration.
Codes and Standards | Feb 5, 2020
HUD issues guidance on emotional support animals
Clarifies the responsibilities of rental housing providers and renters.
Codes and Standards | Feb 4, 2020
New Jersey to become first state to require building contractors to consider climate change impact
Governor has seven key strategies for emissions cuts.
Codes and Standards | Jan 31, 2020
Colorado ranks first in LEED Top 10 states
Rankings of states for LEED certified square feet per person released.
