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2016 North America Fit-Out Cost Guide - Occupier Projects
2016 North America Fit-Out Cost Guide - Occupier Projects
AMERICA
FIT-OUT
COST GUIDE
Occupier Projects 2016/17 Edition
TABLE OF CONTENTS
Executive Summary // 2
Benchmarking Guidelines // 6
Guide Assumptions // 8
BY THE NUMBERS
143
Average cost (USD $) per rentable square foot
to build office space in North America.
24,395
The average cost per seat ($USD) is calculated by utilizing the total number of
‘seats’ (office or cubicle) as the denominator and total cost as the numerator.
171
Average number of square feet per person
or ‘seat’, also defined as space density.
196 SAMPLES
36 GWS Accounts
33 LMAs
43 Markets
18 Industries
ANALYSIS INCLUDES:
Cost Ratios
WHERE’S
THE TOP?
The last twelve months have seen an already buoyant market continue to show strong
signs the boom isn’t over just yet.
Whilst some markets have softened slightly from the highs of the proceeding twelve
months, there is still enough volume of work that construction costs are merely increasing
at a steadier rate compared to the sharp uptick experienced from 2014 to 2015.
However, some markets are extremely hot with San Francisco, Silicon Valley and the
Pacific North West leading the country in market escalation. These particular markets
have a wealth of work with the technology sector and are building at rapid rates. This
sector has a glut of large project opportunities and these projects are sapping the avail-
able labor and driving up construction costs across all sectors.
In the New York market that is typically at the forefront of construction escalation due to
the large amount of capital being spent year over year, there has been much speculation
as to where the top of the market is. Whilst most indicators point to a slowdown, construc-
tion opportunities remain plentiful and the labor markets tight, keeping New York’s costs
climbing in line with the expected averages. The top does not seem to be in sight.
As far as Commercial Tenant Improvement trends, there has been a visible increase in
the amount of densification projects similar in the way CBRE’s office 360 initiative has
changed the aesthetic, function and footprint of our own spaces. The trend of benching,
plug and play desks and a move away from large overbearing cubes and offices is
altering the way construction capital is being spent as companies take on less leased
space and decrease space per desk and per employee.
Companies are saving capital through smaller space leases, but as far as construction
costs go, the dollars are often just switching cost centers as more people in a smaller
area drives up the construction costs to heat and cool whilst furniture costs are reduced
due to the move from cubes and single office furniture to benches. These tradeoffs may
not often increase the project total, but often mean higher costs per square foot as more
program and scope is packed into a reduced rentable square footage.
This trend of densification is very much symbolic of the mobile and flexible workforce
and “model breakers” such as WeWork, the technology sector and the start-up culture.
As companies become paperless and the tether to the desk is being cut, this trend is
being taken on by many sectors, including law firms and financial services firms who
traditionally have always had larger, denser and more expensive spaces.
For the forthcoming year, it is recommended that construction escalation be carried for
future projects that are not imminent and with long design phases. Local market pressures
should be factored whenever entering different market places. We are not at the top yet.
Andrew Sumner
Director
Cost Consultancy
INTERPRETATION FOR
INDIVIDUAL USE
Benchmarking is an excellent way to understand the potential cost of a construction
project ahead of formally developing estimates and beginning construction. When using
benchmarking, there is always a duty of care the user needs to take when analyzing and
interpreting the data for individual use. Guidelines to consider, when using a document
such as this, have been outlined below.
5. OPERATE WITHIN A RANGE. Trying to get to an exact cost per square foot
without having any drawings is virtually impossible – don’t try! Use a range to get
comfortable with the potential fit-out cost.
7. RSF VERSUS USF. Loss factor on RSF varies from building to building and from
state to state. For the purpose of this cost guide, all data is reported in RSF. No
national nuances have been factored.
Ultimately, the benchmarking provided in this document will help guide the budget
development process. It is an educated starting point. Final budget estimates need to be
vetted and created once scope is clarified and detailed variables are defined.
The main data room is 500 RSF within the client space with
supplemental cooling, but excluding backup UPS or generator.
Work is completed with single shifts in regular time. The landlord has
provided a ‘warm dark shell’ which is defined as:
1%
3%
5%
5%
Construction
Design and CA(Hard
(SoftCosts
Costs)
FF & ECosts
Move
IT
Fees
26% Fees
IT
60% FF & ECosts
Move
Construction
Design and CA(Hard
(SoftCosts
Costs)
The North American analysis included forty-two (43) cities or regions where the cost analysis was
completed. The chart below shows the cost distribution across these markets in alphabetical order
ranging from a low of USD $59.49 per rentable square foot (RSF) in Indianapolis to a high of
USD $222.92 per RSF in San Francisco.
$250
$200
$150
COST PER SF (USD)
$100
$50
0
Atlanta
Austin
Birmingham
Boston
Calgary
Carolinas
Chicago
Cincinnati
Columbus
Dallas
DC
Denver
Detroit
Florida
Hartford
Houston
Indianapolis
Kansas City
Little Rock
Los Angeles
Memphis
Milwaukee
Minneapolis
Montreal
Nashville
New Jersey
New Mexico
NYC
Oklahoma
Orange County
Ottawa
Philadelphia
Phoenix
Pittsburgh
Portland
San Diego
San Francisco
Saskatoon
Seattle
St Louis
Toronto
Vancouver
Winnipeg
Design & CA (Soft Costs) Const (Hard Costs) FF & E IT Fees Move Costs
0
$50
$100
$150
$200
Southwest $250
$106.38
Midwest $115.82
Southeast $119.91
Canada $125.60
Includes both GWS Accounts and LMAs: Low to High
Northeast $151.12
AVERAGE OFFICE COST/SF BY REGIONAL MARKET
Northwest $157.08
SoCal $173.21
NY $221.01
NoCal $222.92
0
$50
$100
$150
$200
$250
Indianapolis $59.49
Cincinnati $68.89
Ottawa $74.52
Oklahoma $77.75
Columbus $80.60
Birmingham $81.72
Minneapolis $88.40
$143.04
AVERAGE
Memphis $88.80
Denver $121.92
Detroit $122.55
Saskatoon $123.09
Calgary $125.10
Montreal $138.28
Houston $138.49
Carolinas $142.39
Vancouver $144.86
Austin $145.38
AVERAGE OFFICE PROJECT COST/SF BY CITY MARKET
Philadelphia $146.12
San Diego $153.66
DC $154.75
Chicago $163.90
St Louis $164.41
Seattle $172.40
Los Angeles $176.86
New Jersey $179.26
Boston $183.43
Portland $199.49
Orange County $213.60
NYC $221.01
San Francisco $222.92
The tables below provide the maximum, minimum and average cost per RSF in US dollars. Some
markets received multiple inputs from different GWS accounts within the same local market which
led to the range of figures. For example, a West coast San Francisco based GWS account may have
provided input relative to an Atlanta project, therefore the data was assessed as an Atlanta project.
0
$50
$100
$150
$200
$250
$300
$350
Atlanta
Austin
Birmingham
Boston
Calgary
Carolinas
Chicago
Cincinnati
Columbus
Dallas
DC
Denver
Detroit
Florida
Hartford
Includes both GWS Accounts and LMAs
Houston
Indianapolis
Kansas City
Little Rock
Los Angeles
Memphis
Milwaukee
Minneapolis
Montreal
Nashville
New Jersey
New Mexico
OFFICE COST PER SF BY MARKET: HIGH TO LOW
NYC
Oklahoma
Orange County
Ottawa
Philadelphia
Phoenix
Pittsburgh
Portland
San Diego
San Francisco
Saskatoon
Seattle
St Louis
Toronto
Vancouver
Winnipeg
Many clients require office sites across the country and internationally. A common question is the
relative cost of one site to another site. This is where the external factors begin to have significant
impact to project costs. A client can be requiring the same type of space, aligned with their design
standards, but should not assume the similar cost factors. Our CBRE exercise selected Denver as the
baseline equaling 1.00 with the average cost per RSF at USD $121.92. All other markets were then
assessed on the average cost per RSF against Denver to create a ‘Cost Ratio: Relative Cost to Denver’.
This chart presents a useful radar diagram of relative costs.
San Indianapolis
Francisco Cincinnati
NYC 2.0 Ottawa
1.83
Orange County 1.81 Oklahoma
Portland 1.75 Columbus
1.8
0.74 Milwaukee
St Louis
1.35
0.77
Chicago 1.2 New Mexico
1.34 0.78
$50,000
$43,940
$45,000
$36,527
$40,000
$35,000
$28,744
$28,651
$30,000
COST PER SEAT (USD)
$23,507
$22,661
$25,000
$20,444
$19,449
$16,458
$20,000
$15,767
$15,000
$10,000
$5,000
0
Midwest
Southwest
Canada
Southeast
South Central
Northwest
SoCal
Northeast
NoCal
NY
0
$10K
$20K
$30K
$40K
$50K
$60K
Cincinnati $8,311
Indianapolis $8,879
New Mexico $9,126
Columbus $10,282
Birmingham $13,075
Winnipeg $14,180
Detroit $14,273
$24,395
AVERAGE
Memphis $14,690
Ottawa $14,757
Pittsburgh $20,251
Includes both GWS Accounts and LMAs: Low to High
Vancouver $22,960
Denver $22,968
San Diego $23,449
Kansas City $23,641
Carolinas $23,650
Seattle $23,727
Saskatoon $23,842
Calgary $24,058
Chicago $24,249
Portland $24,328
Atlanta $25,145
New Jersey $25,769
Los Angeles $26,954
Little Rock $28,211
Boston $28,877
Austin $29,159
St Louis $30,772
DC $31,948
Philadelphia $34,300
San Francisco $36,527
NYC $43,940
Orange County $52,741
0
50
100
150
200
250
Atlanta
Austin
Birmingham
Boston
Calgary
Carolinas
Chicago
Cincinnati
Columbus
Dallas
DC
Denver
Detroit
Florida
Hartford
Includes both GWS Accounts and LMAs
Houston
Indianapolis
Workstation
SPACE PLAN USAGE BY MARKET
Kansas City
Little Rock
Los Angeles
Memphis
Office
Milwaukee
Minneapolis
Montreal
Nashville
New Jersey
New Mexico
NYC
Oklahoma
Orange County
250
198
197
19 4
200
169
162
161
158
154
149
150
134
SQUARE FEET
100
50
0
NY
Northeast
South Central
Southeast
SoCal
NoCal
Southwest
Canada
Northwest
Midwest
0
50
100
150
200
250
300
Little Rock 274
Kansas City 269
Oklahoma 247
Orange County 247
Philadelphia 228
DC 219
Atlanta 204
Austin 201
Ottawa 198
NYC 198
Calgary 192
Saskatoon 190
Milwaukee 189
Denver 189
St Louis 181
Pittsburgh 179
Hartford 175
Nashville 172
Minneapolis 172
Phoenix 167
Carolinas 167
Includes both GWS Accounts and LMAs: Low to High
Memphis 164
San Francisco 161
SPACE PLAN USAGE: DENSITY BY MARKET
Birmingham 160
Dallas 159
Boston 158
Vancouver 158
Florida 157
New Jersey 154
Los Angeles 153
Indianapolis 149
San Diego 149
Toronto 137
Chicago 137
Winnipeg 132
Houston 130
DENSITY:
AVERAGE
Seattle 130
Montreal 128
1 person/171 SF
Columbus 128
Cincinnati 123
Portland 122
Detroit 117
New Mexico 96
The schedules provided in the charts below define the average build time in months. It is the length of
time from construction start to substantial completion.
MONTHS
0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Calgary
Minneapolis
New Mexico
Columbus
Seattle
St Louis
Chicago
Houston
Pittsburgh
Kansas City
New Jersey
Toronto
Boston
Detroit
Florida
Atlanta
Denver
Carolinas
Austin
DC
Birmingham
Cincinnati
Dallas
Hartford
Indianapolis
Little Rock
Los Angeles
Memphis
Nashville
Oklahoma
Orange County
Ottawa
Philadelphia
Saskatoon
Winnipeg
Vancouver
San Diego
San Francisco
Phoenix
NYC
Milwaukee
Portland
Montreal
With the exception of Calgary, average construction schedule cycle times are longer in
Canada than most US markets.
$160
$144.86
$138.28
$140
$125.10 $123.09
$121.06
$120
$107.06
$100
COST PER SF (USD)
$80 $74.52
$60
$40
$20
0
Calgary Montreal Ottawa Saskatoon Toronto Vancouver Winnipeg
The Midwest is the least expensive market as it relates to cost per seat. This correlates to
the statistics showing that this region designs space with the highest density, on average.
$180
$163.90
$160
$140
$122.55
$120
COST PER SF (USD)
$100 $93.30
$88.40
$80.60
$80
$68.89
$59.49
$60
$40
$20
0
Chicago Cincinnati Columbus Detroit Indianapolis Milwaukee Minneapolis
$250
$222.92
$200
COST PER SF (USD)
$150
$100
$50
0
San Francisco
The Northeast has one of the lowest space densities in North America.
$200
$183.43
$179.26
$180
$160 $154.75
$146.12
$140
COST PER SF (USD)
$100
$80
$60
$40
$20
0
Boston DC Hartford New Jersey Philadelphia Pittsburgh
$250
$199.49
$200
$172.40
COST PER SF (USD)
$150
$121.92
$100
$50
0
Denver Portland Seattle
New York has the second highest build-out cost and the highest cost per seat in North
America. The high cost per seat correlates to the low space density.
$250
$221.01
$200
COST PER SF (USD)
$150
$100
$50
0
New York City
$250
$213.60
$200
$176.86
$153.66
COST PER SF (USD)
$150
$100
$50
0
Los Angeles Orange County San Diego
$180
$164.41
$160
$145.38
$138.49
$140
$120.86
$120
COST PER SF (USD)
$102.97
$100
$90.72
$77.75
$80
$60
$40
$20
0
Austin Dallas Houston Kansas City Little Rock Oklahoma St Louis
$160
$142.39
$140
$118.40 $117.38
$120 $113.03
$100
COST PER SF (USD)
$88.80
$81.72
$80
$60
$40
$20
0
Atlanta Birmingham Carolinas Florida Memphis Nashville
The Southwest has the lowest average build-out cost in North America.
$120
$107.95
100 $95.37
80
COST PER SF (USD)
60
40
20
0
New Mexico Phoenix
0
$50
$100
$150
$200
$250
$300
Client 01
(USD)
OVERALL
AVERAGES
Client 02
Client 03
Client 04
$7.92
Client 05
Client 06
Client 07
Client 08
Client 09
Client 10
$90.32
Client 14
Client 15
Client 16
Client 17
Client 18
$39.96
Client 21
AVERAGE OFFICE COST/SF BY GWS ACCOUNT
Client 22
FF & E
Client 23
Client 24
IT
$14.18
Client 25
Client 26
Client 27
$4.83
Fees
Client 28
Client 29
Client 30
$2.77
Client 31
Client 32
Client 33
Move Costs
Client 34
Client 35
$0
$50
$100
$150
$200
$250
$300
Client 34 $76.81
Client 30 $80.60
Low to High
Client 29 $82.88
Client 33 $100.06
Client 18 $106.40
PER SF:
Client 15 $107.06
$155.39
Client 17 $112.45
AVERAGE COST
Client 12 $114.65
Client 05 $116.36
Client 24 $120.85
Client 28 $122.33
Client 27 $130.49
Client 10 $132.19
Client 21 $133.57
Client 08 $147.32
Client 03 $151.84
Client 04 $158.61
Client 25 $158.88
Client 32 $162.99
Client 07 $172.12
Client 02 $174.34
Client 01 $175.40
Client 22 $175.88
Client 31 $176.57
Client 13 $185.00
Client 20 $185.00
AVERAGE OFFICE PROJECT COST/SF BY GWS ACCOUNT
Client 09 $185.40
Client 26 $188.80
Client 06 $194.77
Client 35 $198.56
Client 16 $199.49
Client 23 $216.00
Client 19 $219.96
Client 36 $224.00
Client 11 $250.00
Client 14 $276.67
$0
$50
$100
$150
$200
$250
$300
Client 03 $151.84
Client 05 $116.36
Client 06 $194.77
Client 10 $132.19
Client 11 $250.00
Client 12 $114.65
GWS Accounts Only
Client 19 $219.96
$159.10
Client 24 $120.85
BANKING AND
Client 28 $122.33
FINANCE AVERAGE:
Client 31 $176.57
Client 32 $162.99
Client 35 $198.56
Client 36 $224.00
Client 04 $158.61
Client 13 $185.00
Client 25 $158.88
$158.24
AVERAGE:
HEALTHCARE
Client 27 $130.49
Client 02 $174.34
Client 08 $147.32
$149.41
AVERAGE:
Client 33 $100.06
INSURANCE
Client 14 $276.67
Client 15 $107.06
Client 16 $199.49
AVERAGE OFFICE PROJECT COST/SF BY INDUSTRY
Client 17 $112.45
$180.56
AVERAGE:
SCIENCE &
TECHNOLOGY
Client 18 $106.40
Client 22 $175.88
Client 01 $175.40
Client 07 $172.12
Client 09 $185.40
Client 20 $185.00
Client 21 $133.57
OTHER
Client 23 $216.00
$139.32
AVERAGE: Client 26 $188.80
Client 29 $82.88
Client 30 $80.60
Client 34 $76.81
$0
10K
20K
30K
40K
50K
$60K
Client 25 $10,184
Client 30 $10,282
Low to High
Client 18 $12,667
Client 05 $12,866
Client 34 $14,046
Client 15 $14,180
$24,781
PER SEAT:
Client 27 $14,999
AVERAGE COST
Client 28 $15,934
Client 10 $16,162
Client 33 $17,075
Client 21 $17,753
Client 29 $18,417
Client 31 $19,510
Client 11 $19,531
Client 04 $19,826
Client 17 $20,661
Client 22 $20,819
Client 32 $21,856
Client 24 $23,518
Client 03 $24,117
Client 16 $24,328
Client 02 $24,762
Client 20 $26,056
Client 06 $28,855
Client 12 $29,397
AVERAGE OFFICE COST PER SEAT BY GWS ACCOUNT
Client 01 $30,085
Client 35 $32,009
Client 19 $33,147
Client 07 $35,019
Client 13 $37,000
Client 08 $37,775
Client 36 $38,620
Client 09 $41,663
Client 23 $43,200
Client 26 $52,394
Client 14 $55,014
Over the past few years, the trend has been to reduce the number of assigned or designated seating
and move toward flexible workspaces. Generally, clients supported by the LMA business tend to design
spaces with more flex or hotel seating as compared to the GWS clients.
18.7%
Hotel
Workstation
/ Bench Seat
14.2% Office
Workstation
Hotel / Bench Seat
67.0%
13.3%
24.2%
14.0% Hotel
Workstation
/ Bench Seat Hotel
Worksta
/
Office Office
Workstation
Hotel / Bench Seat Worksta
Hotel /
72.6% 14.4% 61.4%
0
50
100
150
200
250
300
350
Client 03
Client 05
Client 06
Client 10
Client 11
Client 12
Client 19
Summarized by Industry
Client 24
Client 28
Workstation
Client 13
Client 25
HEALTHCARE
Client 27
Client 02
Office
SPACE PLAN USAGE BY GWS ACCOUNT
Client 08
Client 33
INSURANCE
Client 14
Client 15
Client 16
Client 17
SCIENCE &
TECHNOLOGY
Client 18
OTHER
Client 26
Client 29
Client 30
Client 34
0
50
100
150
200
250
300
350
Client 26 286
Client 08 256
Client 12 256
Low to High
Client 09 225
Client 29 222
Client 07 203
Client 23 200
Client 13 200
Client 14 198
Client 24 197
Client 17 191
Client 34 184
Client 01 173
Client 36 172
Client 33 170
Client 35 161
Client 19 150
Client 03 150
Client 06 148
Client 02 141
Client 20 141
Client 21 135
Client 28 133
SPACE PLAN USAGE: DENSITY BY GWS ACCOUNT
Client 15 132
Client 30 128
Client 04 125
Client 32 123
Client 10 123
Client 16 122
Client 18 119
Client 22 116
Client 05 116
AVERAGE DENSITY:
Client 27 115
1 person per 158 SF
Client 31 110
Client 11 78
Client 25 64
0
50
100
150
200
250
300
350
Client 03 150
Client 05 116
Client 06 148
Client 10 123
Client 11 78
Client 12 256
Client 19 150
Summarized by Industry
FINANCE
Client 24 197
BANKING AND
Client 28 133
Client 31 110
Client 32 123
Client 35 161
Client 36 172
Client 04 125
Client 13 200
Client 25 64
HEALTHCARE
Client 27 115
Client 02 141
Client 08 256
Client 33 170
INSURANCE
Client 14 198
Client 15 132
Client 16 122
SPACE PLAN USAGE: DENSITY BY GWS ACCOUNT
Client 17 191
SCIENCE &
TECHNOLOGY
Client 18 119
Client 22 116
Client 01 173
Client 07 203
Client 09 225
Client 20 141
Client 21 135
OTHER
Client 23 200
Client 26 286
Client 29 222
Client 30 128
Client 34 184
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