Many things—from a cup of coffee to tickets to a ballgame to a month’s rent—are expensive in New York City and San Francisco.
Add construction costs to the list. A report from the CBRE's Valuation & Advisory Services found that new office space core and shell construction costs are highest in the two coastal cities.
In New York, new office construction costs between $500 and $550 per sf, as of Q3 2015, the highest amount of the cities studied. San Francisco was second, with costs between $350 and $400 per sf.
Boston ($280 to $320 per sf), Seattle ($250-$300), Chicago ($240-$290), and Houston ($220-$270) finished the list.
“These numbers are for prices associated with the direct hard construction costs, and the ranges do not include acquisition costs or indirect soft costs,” said Robert Barone, of CBRE’s Valuation & Advisory Services, in a statement. “Indirect soft costs, which include costs for things such as architect/engineering fees, legal, administration, marketing, financing, FF&E and tenant improvements, can represent an additional 30% to 40% of the direct hard costs ranges.”
In addition, New York ($70.54 per sf, per annum, as of Q3) and San Francisco ($67.33) had the highest asking rents for offices, too.
Related Stories
ProConnect Events | Apr 23, 2024
5 more ProConnect events scheduled for 2024, including all-new 'AEC Giants'
SGC Horizon present 7 ProConnect events in 2024.
75 Top Building Products | Apr 22, 2024
Enter today! BD+C's 75 Top Building Products for 2024
BD+C editors are now accepting submissions for the annual 75 Top Building Products awards. The winners will be featured in the November/December 2024 issue of Building Design+Construction.
Resiliency | Apr 22, 2024
Controversy erupts in Florida over how homes are being rebuilt after Hurricane Ian
The Federal Emergency Management Agency recently sent a letter to officials in Lee County, Florida alleging that hundreds of homes were rebuilt in violation of the agency’s rules following Hurricane Ian. The letter provoked a sharp backlash as homeowners struggle to rebuild following the devastating 2022 storm that destroyed a large swath of the county.
Mass Timber | Apr 22, 2024
British Columbia changing building code to allow mass timber structures of up to 18 stories
The Canadian Province of British Columbia is updating its building code to expand the use of mass timber in building construction. The code will allow for encapsulated mass-timber construction (EMTC) buildings as tall as 18 stories for residential and office buildings, an increase from the previous 12-story limit.
Standards | Apr 22, 2024
Design guide offers details on rain loads and ponding on roofs
The American Institute of Steel Construction and the Steel Joist Institute recently released a comprehensive roof design guide addressing rain loads and ponding. Design Guide 40, Rain Loads and Ponding provides guidance for designing roof systems to avoid or resist water accumulation and any resulting instability.
Building Materials | Apr 22, 2024
Tacoma, Wash., investigating policy to reuse and recycle building materials
Tacoma, Wash., recently initiated a study to find ways to increase building material reuse through deconstruction and salvage. The city council unanimously voted to direct the city manager to investigate deconstruction options and estimate costs.
Student Housing | Apr 19, 2024
$115 million Cal State Long Beach student housing project will add 424 beds
A new $115 million project recently broke ground at California State University, Long Beach (CSULB) that will add housing for 424 students at below-market rates. The 108,000 sf La Playa Residence Hall, funded by the State of California’s Higher Education Student Housing Grant Program, will consist of three five-story structures connected by bridges.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Construction Costs | Apr 16, 2024
How the new prevailing wage calculation will impact construction labor costs
Looking ahead to 2024 and beyond, two pivotal changes in federal construction labor dynamics are likely to exacerbate increasing construction labor costs, according to Gordian's Samuel Giffin.
Healthcare Facilities | Apr 16, 2024
Mexico’s ‘premier private academic health center’ under design
The design and construction contract for what is envisioned to be “the premier private academic health center in Mexico and Latin America” was recently awarded to The Beck Group. The TecSalud Health Sciences Campus will be located at Tec De Monterrey’s flagship healthcare facility, Zambrano Hellion Hospital, in Monterrey, Mexico.
