Americas Fit-Out Cost Guide 2022

RISING COMMODITY PRICES WILL CONTINUE TO APPLY UPWARD PRESSURE ON CONSTRUCTION COSTS IN 2022 Cost Index for Lumber, Steel and Copper

Forecast

Lumber

Steel (Pipe and Tube)

Copper

36% increase YOY

800

700

76% increase YOY

600

500

400

300 Cost Index

200

9% increase YOY

100

0

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted;

KEY TAKEAWAY Consumer and construction industry demand resulted in a spike in lumber pricing, double pre-pandemic levels, that lasted through mid-year 2021. Pricing eased during the summer but was still at elevated levels increasing 9% on a YoY basis. 3

COMMODITY PRICING Supply chain bottlenecks which were a result of pandemic related shutdowns and labor constraints have had a lasting impact on commodity prices and availability. Steel prices saw the steepest increase, rising 76% year-over-year (YoY). Copper prices rose 36% YoY and 67% since the onset of the pandemic. Pre-pandemic, copper prices experienced several years of volatility, therefore, current copper prices are just 30% higher than the 10-year average. Lumber prices had been relatively stable for the decade preceding the pandemic. Volatility has increased in the lumber sector due to pandemic related demand. Lumber, steel and copper prices are forecast to moderate later this year, but to remain at elevated pricing levels for the next two years. 4

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AMERICAS OFFICE FIT-OUT COST GUIDE 202 2

CUSHMAN & WAKEFIELD