North America Industrial Construction Cost Guide 2023

INTRODUCTION Construction activity in the industrial sector has raced to keep up with robust demand of the last two years in North American markets. While industrial construction pipelines continue at historically high levels, the sector is facing several headwinds. Pandemic-related supply chain constraints, which helped drive commodities costs up, continue to have a lingering impact on overall costs and material lead times. A significantly higher interest rate environment in the United States provides additional upward pressure to costs. The fed rate is currently 4.25%-4.5% up from nearly zero in March 2022. As the sector faces a potential cooling down in 2023, we are closely monitoring the costs and material lead times which could allow projects more flexibility in their delivery timelines.

43 MARKETS IN NORTH AMERICA

The Guide includes comprehensive construction costs including all relevant trade codes, general conditions, fees and contingency. The Guide specifically excludes FF&E, IT, audio/visual, and security cost for the office component and soft costs or purchase of land for the overall industrial project.

2 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

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