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
| Aug 1, 2016
K-12 SCHOOL GIANTS: In a new era of K-12 education, flexibility is crucial to design
Space flexibility is critical to classroom design. Spaces have to be adaptable, even allowing for drastic changes such as a doubling of classroom size.
| Aug 1, 2016
Top 80 K-12 School Construction Firms
Gilbane, Balfour Beatty, and Core Construction head Building Design+Construction’s annual ranking of the nation’s largest K-12 school sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Jul 29, 2016
AIRPORT FACILITIES GIANTS: Airports binge on construction during busy year for travel
Terminal construction will grow by nearly $1 billion this year, and it will keep increasing. Airports are expanding and modernizing their facilities to keep passengers moving.
| Jul 29, 2016
Top 45 Airport Terminal Construction and CM Firms
Hensel Phelps generated more than $660 million in revenue last year to earn the top spot on BD+C’s annual ranking of the nation’s largest airport terminal construction and CM firms.
| Jul 27, 2016
Turner turns to design-build, P3, Lean practices, and engineering services
Design-build has accounted for a notable portion of Turner’s work over the last few years.
| Jul 27, 2016
CONSTRUCTION GIANTS: Economists forecast moderation for nonresidential projects
Construction spending is up this year and is expected to continue to increase through 2017. But, economists identified factors that could slow construction spending.
| Jul 27, 2016
Top 70 Construction Management Firms
Hill International, Jacobs, and JLL head Building Design+Construction's 2016 ranking of the largest construction management and project management firms in the United States.
| Jul 27, 2016
Top 115 Contractor Firms
Turner Construction, Whiting-Turner Contracting, Fluor, and Skanska top Building Design+Construction's 2016 ranking of the largest contractors in the United States.
Sports and Recreational Facilities | Jul 20, 2016
San Diego’s waterfront redevelopment would go beyond a mere ‘project’
Its developers envision a thriving business, education, and entertainment district, highlighted by a huge observation tower and aquarium.
| Jul 19, 2016
2016 GIANTS 300 REPORT: Ranking the nation's largest architecture, engineering, and construction firms
Now in its 40th year, BD+C’s annual Giants 300 report ranks AEC firms by discipline and across more than 20 building sectors and specialty services.
