Life Sciences U.S. Fit-Out Cost Guide 2023

INTRODUCTION

Material delays and increased costs that plagued the construction sector during the pandemic have continued to impact life sciences project timelines. While most global supply chain constraints have eased, additional factors have applied pressure to construction projects in the life sciences sector. > Competition for materials has shifted from residential to government infrastructure projects and net-zero efforts. > Commodity prices have decreased from recent historic highs but remain elevated relative to pre-pandemic pricing. Increasing demand for copper used in net-zero electrification efforts will apply upward pressure to prices. > Construction and building cost increases have moderated despite continued inflationary pressures and a higher interest rate environment. However, the labor-cost component of pricing continues to increase. > Construction jobs continue to be added in the construction sector, totaling 86,000 jobs in the first seven months of 2023 and approximately 17,000 jobs in the non-residential building sector. At the same time, labor constraints continue to make staffing projects difficult. Wages are expected to continue to increase above historical rates through 2024 as contractors struggle to attract talent. This guide, which covers nine lab and cGMP facility types across the six major U.S. life sciences markets, helps occupiers better understand their capital planning and relocation budgets, and includes a comprehensive fit out cost section, which covers: mechanical electrical, piping and architectural trades; millwork; doors, frames and hardware; drywall, acoustic and carpentry; general finishes; mechanical, plumbing and fire protection; electrical and more.

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Cushman & Wakefield