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
Cultural Facilities | Aug 5, 2022
A time and a place: Telling American stories through architecture
As the United States enters the year 2026, it will commence celebrating a cycle of Sestercentennials, or 250th anniversaries, of historic and cultural events across the land.
Sponsored | | Aug 4, 2022
Brighter vistas: Next-gen tools drive sustainability toward net zero line
New technologies, innovations, and tools are opening doors for building teams interested in better and more socially responsible design.
| Aug 4, 2022
Newer materials for green, resilient building complicate insurance underwriting
Insurers can’t look to years of testing on emerging technology to assess risk.
Sustainability | Aug 4, 2022
To reduce disease and fight climate change, design buildings that breathe
Healthy air quality in buildings improves cognitive function and combats the spread of disease, but its implications for carbon reduction are perhaps the most important benefit.
Multifamily Housing | Aug 4, 2022
Faculty housing: A powerful recruitment tool for universities
Recruitment is a growing issue for employers located in areas with a diminishing inventory of affordable housing.
Multifamily Housing | Aug 3, 2022
7 tips for designing fitness studios in multifamily housing developments
Cortland’s Karl Smith, aka “Dr Fitness,” offers advice on how to design and operate new and renovated gyms in apartment communities.
Building Materials | Aug 3, 2022
Shawmut CEO Les Hiscoe on coping with a shaky supply chain in construction
BD+C's John Caulfield interviews Les Hiscoe, CEO of Shawmut Design and Construction, about how his firm keeps projects on schedule and budget in the face of shortages, delays, and price volatility.
Codes and Standards | Aug 3, 2022
Some climate models underestimate risk of future floods
Commonly used climate models may be significantly underestimating the risk of floods this century, according to a new study by Yale researchers.
| Aug 3, 2022
Designing learning environments to support the future of equitable health care
While the shortage of rural health care practitioners was a concern before the COVID-19 pandemic, the public health crisis has highlighted the importance of health equity in the United States and the desperate need for practitioners help meet the needs of patients in vulnerable rural communities.
Reconstruction & Renovation | Aug 3, 2022
Chicago proposes three options for Soldier Field renovation including domed stadium
The City of Chicago recently announced design concepts for renovations to Soldier Field, the home of the NFL’s Chicago Bears.