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 | Sep 5, 2018
New White Paper on Metal Panel Fire Safety Released
Has detailed information for insulation, fire safety requirements in U.S., other countries.
Codes and Standards | Aug 31, 2018
Trade war could make adaptive reuse more attractive
Higher cost of building materials could make rehab a better financial bet.
Codes and Standards | Aug 30, 2018
Metrics should guide strategy for schools seeking LEED certification
Assessing current status helps direct where improvements can have greatest impact.
Codes and Standards | Aug 29, 2018
The 2018 IAPMO solar and swimming pool codes now available
For installation and inspection of public and private swimming pools, spas, and hot tubs.
Codes and Standards | Aug 28, 2018
New York’s green roof program needs reform
Despite incentives, few owners add vegetative roofs.
Codes and Standards | Aug 24, 2018
Resilience, sustainability emphasized in plans for new 23,000-acre city in the Philippines
“A backup for when Manila fails.”
Codes and Standards | Aug 23, 2018
Cities promote deconstruction of old homes with mixed results
Market factors complicate efforts to recycle material from old structures.
Codes and Standards | Aug 22, 2018
Oregon is first state to change building code to allow tall mass timber buildings
Statewide alternate method allows early technical consideration and approval.
Codes and Standards | Aug 21, 2018
First mass timber panel made from structural composite lumber gets APA certification
Said to be much more cost effective than CLT options.
Codes and Standards | Aug 17, 2018
Zoning changes can be crucial to filling large, empty retail spaces
Alternative uses often require action by local officials.
