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 | Dec 8, 2016
WELL and BREEAM to align standards
The goal is to make it easier for projects pursuing both standards.
Codes and Standards | Dec 7, 2016
U.S. lumber industry pushes for import duties on Canadian softwood
The industry claims the product is being sold below fair market value.
Codes and Standards | Dec 5, 2016
International Construction Measurement Standards draft released
The goal is to improve consistency for calculating costs and reducing risk.
Codes and Standards | Dec 2, 2016
D.C. Council passes bill to reduce number of blighted properties
The new legislation reduces the amount of time a vacant property can qualify for a lower tax rate.
Codes and Standards | Dec 1, 2016
Passive House standard gaining influence in commercial sector
Some industry watchers predict it will become the base building code.
Codes and Standards | Nov 30, 2016
Researchers finding solutions to bird/building collisions
Glass facades pose a serious risk to birds and cause millions of avian deaths each year.
Codes and Standards | Nov 29, 2016
New OSHA rules to reduce fall and trip hazards
Employers can choose from a variety of fall protection systems.
Codes and Standards | Nov 29, 2016
Seattle imposes new construction regulation to address rat problem
The city ranks first in U.S. in rat population.
Codes and Standards | Nov 28, 2016
Construction groups sue New York City over crane safety regulation
The rule bans cranes from operating when wind exceeds 30 mph.
Codes and Standards | Nov 28, 2016
Marines plan first net zero energy military base
The Albany, Ga., site will have ground source heat pumps and a biomass generator.
