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
K-12 Schools | Nov 6, 2014
New Sandy Hook school features could influence security standards
The design of the new Sandy Hook Elementary School on the site of the 2012 Newtown, Conn., school shooting features enhanced security measures—some subtle and others more prominent.
| Nov 6, 2014
OSHA seeking input on electrical standards
The Occupational Safety and Health Administration (OSHA) is reviewing electrical standards for the construction industry to make sure proper safeguards are in place as electrical wiring is being installed and maintained.
Smart Buildings | Oct 30, 2014
Energy Department pledges $9 million for energy efficiency improvements on commercial buildings
The U.S. Dept. of Energy will spend $9 million to encourage investments in energy-saving technologies that can be tested and deployed in offices, shops, restaurants, hospitals, hotels and other types of commercial buildings.
| Oct 30, 2014
Steel Framing Industry Association’s certification program aims to ensure connector quality
The Steel Framing Industry Association has launched a certification program to ensure that cold-formed steel connectors meet quality guidelines, building codes, and ASTM standards.
| Oct 30, 2014
American Concrete Institute releases reorganized structural concrete code requirements
The reorganized document is organized from an engineer’s perspective. The requirements flow more intuitively and have fewer cross-references for improved logic and flow of information.
| Oct 30, 2014
USGBC pushes back LEED v4 deadline
Extending the deadline gives LEED users additional time to prepare for LEED v4, the latest version of LEED, which features increased rigor and multiple updates.
| Oct 24, 2014
Solar panels could be required on most new construction in San Francisco
A San Francisco city councilor will propose a new regulation that could soon mandate solar panels on most new construction in the city and on many existing apartment buildings.
| Oct 24, 2014
International WELL Building Institute launches green building standard
The International WELL Building Institute has launched the WELL Building Standard Version 1.0, which focuses on enhancing people’s health and well-being through the built environment.
| Oct 24, 2014
Seattle's Bullitt Center influencing codes and public policy on sustainability
The Bullitt Center in Seattle, which some say is the world's most efficient office building is not only influencing how other structures are built, it is contributing to revisions of codes and public policy.
| Oct 16, 2014
U.S. military concerned about climate change putting bases at risk from floods
Among the challenges the armed forces may face is rising sea levels that could put Navy docks and other installations under water in places like Norfolk, Va., Honolulu, and other coastal locations.