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
| Feb 17, 2014
Tulsa, Okla., mulls code change to require storm shelters in new schools
State and city officials are pushing for increased bonding capacity to pay for the storm shelters.
| Feb 13, 2014
Appraisal Institute issues guidelines on evaluating green property
The Appraisal Institute and the Institute for Market Transformation have issued guidelines for training property appraisers to evaluate green buildings.
| Feb 7, 2014
New LEED Dynamic Plaque system will measure building performance
The U.S. Green Building Council recently unveiled the LEED Dynamic Plaque, which is a new system designed for benchmarking and comparing post-occupancy building performance on a global scale.
| Feb 7, 2014
Los Angeles officials struggle to deal with needed seismic retrofits
Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.
| Feb 7, 2014
Los Angeles officials struggle to deal with needed seismic retrofits
Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.
| Feb 7, 2014
EPA, Freddie Mac collaborate on energy- and water-efficient apartments
Freddie Mac will gather data on energy and water use from property owners, and encourage lenders to spend on energy-efficient investments for multifamily housing.
| Feb 7, 2014
ASHRAE releases new refrigerant standards
The 2013 editions of ASHRAE’s major refrigerants-related standards, incorporating 41 new addenda, have been published.
| Feb 7, 2014
Ohio legislature moves to bar LEED standards on state projects
The use of LEED standards is being barred for public construction in Ohio under a state senate resolution.
| Jan 31, 2014
Center for Environmental Innovation in Roofing releases solar panel racking criteria for asphalt shingle roof systems
The Center for Environmental Innovation in Roofing’s PV Taskforce is releasing the first public draft of PV Racking and Attachment Criteria for Effective Asphalt Shingle Roof System Integration for an initial round of public comment.
| Jan 31, 2014
Developers are exceeding LEED standards for marketing purposes
Using LEED certification as a marketing tool is perceived by developers to be a successful tool, and this has pushed them to go above the minimum requirements at each level of certification, according to a study in the Environmental Science & Technology journal.
