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 | Jun 27, 2018
Thirty nine San Francisco high rises at risk of collapse in major earthquake
Vulnerable buildings have welded columns and beams.
Codes and Standards | Jun 26, 2018
Boston enacts new climate resiliency rules for buildings
New policy is likely a first in the nation.
Codes and Standards | Jun 25, 2018
Integrated Project Delivery guide offered by Pankow Foundation
An Action Guide for Leaders offers answers to critical IPD questions.
Codes and Standards | Jun 21, 2018
New app said to automate code compliance
Startup offers plug-in that scans 3D models.
Codes and Standards | Jun 20, 2018
Home values and local tax revenues at risk from high tide flooding, scientists group says
Analysis of property data identifies communities prone to frequent flooding.
Codes and Standards | Jun 19, 2018
Structural engineered wood products exempt from new EPA formaldehyde ruling
Exempt products include structural plywood, oriented strand board (OSB).
Codes and Standards | Jun 18, 2018
Seattle City Council repeals controversial new per-worker tax on large employers
Measure was aimed at raising $50 million for homeless services, affordable housing.
Codes and Standards | Jun 14, 2018
Hardscape from development makes ‘1,000-year’ flood in Maryland worse
Impermeable concrete made it easier for water to overwhelm drainage system.
Codes and Standards | Jun 13, 2018
United States Resiliency Council announces support for Calif. earthquake resiliency bill
Measure would help cities identify structures that could fail in major quake.
Codes and Standards | Jun 12, 2018
Congestion pricing for cars is effective in reducing traffic, but a difficult sell
After three years, traffic congestion declined by 30% in London.