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
| Nov 18, 2013
6 checkpoints when designing a pediatric healthcare unit
As more time and money is devoted to neonatal and pediatric research, evidence-based design is playing an increasingly crucial role in the development of healthcare facilities for children. Here are six important factors AEC firms should consider when designing pediatric healthcare facilities.
| Nov 18, 2013
How do construction professionals use social media?
LinkedIn is the social network used by most construction professionals, according to the results of a newly released national survey conducted by the Construction Marketing Association.
| Nov 17, 2013
Meet up with the BD+C team at Greenbuild. Drinks are on us!
To all our friends in the AEC industry, you are cordially invited to join the BD+C team at several fun events during the Greenbuild show this week. No RSVP required. Just show up and enjoy.
| Nov 15, 2013
Halls of ivy keep getting greener and greener
Academic institutions have been testing the limits of energy-conserving technologies, devising new ways to pay for sustainability extras, and extending sustainability to the whole campus.
| Nov 15, 2013
Pedia-Pod: A state-of-the-art pediatric building module
This demonstration pediatric treatment building module is “kid-friendly,” offering a unique and cheerful environment where a child can feel most comfortable.
| Nov 15, 2013
Insurance rates continue to rise for U.S. construction firms
Pricing for contractors general liability, project-specific general liability, umbrella and excess liability, workers’ compensation, and residential construction insurance was up between 3% and 7% on average during the first half of the year, according to Marsh’s Construction Market Update—First Half 2013.
| Nov 15, 2013
Metal makes its mark on interior spaces
Beyond its long-standing role as a preferred material for a building’s structure and roof, metal is making its mark on interior spaces as well.
| Nov 13, 2013
Government work keeps green AEC firms busy
With the economy picking up, many stalled government contracts are reaching completion and earning their green credentials.
| Nov 13, 2013
First look: Renzo Piano's addition to Louis Kahn's Kimbell Art Museum [slideshow]
The $135 million, 101,130-sf colonnaded pavilion by the famed architect opens later this month.
| Nov 11, 2013
4 trends driving the recovering commercial construction sector
Jones Lang LaSalle research reveals a four-point “new look” for the post-recession construction industry.
