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
| Oct 16, 2014
Fannie Mae releases white paper on energy performance of multifamily buildings
The least energy efficient multifamily property may be spending $165,000 more in annual energy costs than a similar property operating the most efficiently, according to a new white paper released by Fannie Mae.
| Oct 16, 2014
Energy Department sets green building standards for federal agencies
LEED Silver may be used, and in some instances, the Green Globes program may be substituted, according to a new regulation by the U.S. Department of Energy.
| Oct 16, 2014
New York City’s climate plan includes tripling of solar energy
New York City’s plan to cut greenhouse gas emissions by 80% by 2050 includes tripling the amount of solar power generated from city-owned buildings.
| Oct 15, 2014
Drones may soon assist code inspectors for construction in the UAE
The United Arab Emirates’ Ministry of Labour announced that they will start using drones to help inspectors record when construction sites are breaking laws.
| Oct 9, 2014
California authorizes increased use of design-build on state projects
Under the updated law, the Department of General Services and the Department of Corrections and Rehabilitation may use design-build on projects in excess of $1 million.
| Oct 9, 2014
New York City releases guide for retrofitting buildings against floods
Part of the city’s response to widespread flooding as a result of Hurricane Sandy, the manual offers retrofitting strategies that will enable property owners to reduce the risk of damage and disruption from coastal flooding.
| Oct 9, 2014
Seattle puts restrictions on micro apartments
The Seattle City Council passed new rules that new studio apartments in the city must measure at least 220 sf and contain at least two sinks.
| Oct 9, 2014
Cities get creative with stormwater management
Cities around the world are crafting stormwater management policies that include natural and manmade methods to store and absorb runoff to reduce flooding.
| Oct 2, 2014
Fannie Mae study says affordable rental units more energy efficient than market-rate units
Fannie Mae’s new report on energy usage in the multifamily sector found that affordable properties use 28% less energy per unit and are 29% smaller than market-rate properties.
| Oct 2, 2014
California Energy Commission launches code upgrade process
The California Energy Commission launched the upgrade process to Title 24, the state energy code, last month.
