Many things—from a cup of coffee to tickets to a ballgame to a month’s rent—are expensive in New York City and San Francisco.
Add construction costs to the list. A report from the CBRE's Valuation & Advisory Services found that new office space core and shell construction costs are highest in the two coastal cities.
In New York, new office construction costs between $500 and $550 per sf, as of Q3 2015, the highest amount of the cities studied. San Francisco was second, with costs between $350 and $400 per sf.
Boston ($280 to $320 per sf), Seattle ($250-$300), Chicago ($240-$290), and Houston ($220-$270) finished the list.
“These numbers are for prices associated with the direct hard construction costs, and the ranges do not include acquisition costs or indirect soft costs,” said Robert Barone, of CBRE’s Valuation & Advisory Services, in a statement. “Indirect soft costs, which include costs for things such as architect/engineering fees, legal, administration, marketing, financing, FF&E and tenant improvements, can represent an additional 30% to 40% of the direct hard costs ranges.”
In addition, New York ($70.54 per sf, per annum, as of Q3) and San Francisco ($67.33) had the highest asking rents for offices, too.
Related Stories
Multifamily Housing | Oct 21, 2021
Chicago’s historic Lathrop public housing complex gets new life as mixed-income community
A revitalized New Deal–era public housing community in Chicago brings the Garden City movement of yesteryear into the 21st century.
Sponsored | BD+C University Course | Oct 15, 2021
7 game-changing trends in structural engineering
Here are seven key areas where innovation in structural engineering is driving evolution.
| Oct 14, 2021
Inside the KCI Airport Terminal Workforce Enhancement Program
The construction and development team for Kansas City International airport's new terminal discuss their Strategic Partnership Program to encourage participation by local minority- and women-owned enterprises, and their Work Training Program to train and hire local KC residents for trade jobs on the KCI Terminal project.
| Oct 14, 2021
The future of mass timber construction, with Swinerton's Timberlab
In this exclusive for HorizonTV, BD+C's John Caulfield sat down with three Timberlab leaders to discuss the launch of the firm and what factors will lead to greater mass timber demand.
Contractors | Oct 13, 2021
Chicago-based Pepper Construction named the most innovative company in the construction industry
Firm wins AGC Innovation Award for developing a virtual reality safety training program.
Multifamily Housing | Oct 12, 2021
Affordable and sublime: 13 projects that represent the future of affordable housing
These projects prove that it’s possible to develop aesthetically pleasing, high-quality housing for low-income families, the homeless, and veterans.
Building Owners | Oct 12, 2021
6 ways building owners can own their construction projects
Building owners have an important role in executing their capital projects and can greatly increase their project’s chances of success by understanding and actively managing a few key factors.
Green | Oct 6, 2021
My reaction to the UN IPCC Climate Change 2021 report: Ugh!
The recent report of the UN Intergovernmental Panel on Climate Change is not a happy read.
Contractors | Oct 4, 2021
GE Johnson joins DPR Construction
GE Johnson joined the DPR Construction family of companies. This offers both companies strategic growth and employee development opportunities.
Sponsored | Glass and Glazing | Oct 1, 2021
Specifying Responsibly to Save Birds’ Lives
Realizing sustainable, bird-friendly glass design