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Cushman Wakefield Office Fit-Out/Construction Costs

Cushman Wakefield Office Fit-Out/Construction Costs

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Cushman & Wakefield has released its 2022 Americas Office Fit-Out Cost Guide, which found supply chain constraints coupled with shifting consumer demands will continue to add upwards pressure to costs, both materials and labor.

Across the Americas, average generation 1 fit out costs total $122/square feet and generation 2 costs are typically priced at 10-15% discount to generation 1. Construction and building cost indices increased by 8.2% and 13.6% YoY in 2021, according to ENR and Moody’s Analytics.

Contractor expectations for future costs are elevated with 96% of respondents expecting their supplier costs to increase further in the next six months. Construction wages increased 3.5% in 2021, outpacing the 10-year average prior to the pandemic (2010-2019) by 150 basis points.

Additionally, Cushman & Wakefield’s construction contractor sentiment survey found that contractors expect continued increases in material lead times and project execution timelines in the next six months.


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