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

LIFE SCIENCES FIT OUT COST GUIDE 2023

Cushman & Wakefield’s GC sentiment survey has shown slight improvements, but as of January 2023, nearly two-thirds of GCs continued to expect supplier costs to increase in the next six months. That is down from 87% of GCs who felt that supplier costs had increased slightly (49%) or significantly (38%) in the six months prior.

AS OF JULY 2023 ANNUAL INCREASES HIGHER FOR SKILLED LABOR

5.0%

4.5%

4.4%

4.5%

4.0%

3.4%

3.5%

3.0%

2.6%

2.4%

2.5%

2.1%

2.1%

2.0%

2.0%

1.5%

1.0%

0.5% Percent Change in Cost Index

0.0%

Construction

Building

Common Labor

Skilled Labor

Year-over-Year

10-Year Average

Source: Engineering News Record (ENR) (McGraw-Hill)

KEY TAKEAWAY

Construction cost increases have decelerated and as of July 2023, the ENR index annual growth rate for both construction and building costs fell below their 10-year monthly increase averages.

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