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 | Feb 27, 2017
Green building saves operating costs and boosts asset value
A new report shows 14% cost savings and a 7% increase in value when green standards are met.
Codes and Standards | Feb 24, 2017
Scant data hampering energy, water efficiency at sports venues
New NIBS report says baseline information needs further development.
Codes and Standards | Feb 22, 2017
Plans for WELL Building Standard include linkage with other green building standards
The planned updated version will be customizable for any building type.
Codes and Standards | Feb 21, 2017
Aging building code inspectors and government belt-tightening could cause crisis
Inspectors are edging toward retirement with no understudies in place.
Codes and Standards | Feb 20, 2017
AISI publishes three new cold-formed steel framing research reports
Seismic simulation, roof trusses, steel-to-steel and sheathing-to-steel connections are examined in the reports.
Codes and Standards | Feb 17, 2017
New energy design guide for metal building systems now available
The second edition incorporates more recent IECC and ASHRAE standards.
Codes and Standards | Feb 14, 2017
Paper outlines how BREEAM credits can be used for WELL standard compliance
The paper provides guidance on how to streamline pursuit of dual certification.
Codes and Standards | Feb 14, 2017
Evidence mounts on health, productivity benefits of sustainable work spaces
High-performance green buildings are linked to better job performance.
Codes and Standards | Feb 13, 2017
Calif. commission approves ‘emergency’ balcony code changes
The changes apply to multifamily, hotels, state-owned buildings, and public schools.
Codes and Standards | Feb 9, 2017
Google-initiated program aims to get construction industry to use healthier building materials
Portico platform features a database of products ranked on how they disclose ingredients.