North America Industrial Construction Cost Guide 2023

Record Level of Construction: New supply has not been able to keep up with industrial demand, but certainly not for lack of trying. Since the beginning of the pandemic, over 2.1 bsf of industrial space has been delivered across the globe. The Americas has accounted for 62% of that new construction—1.2 bsf in the U.S., 68.4 msf in Canada and 34 msf in Latin America. Additionally, a record level of industrial space under construction remains. The 731 msf of space under construction in the Americas represents 4.0% of current industrial inventory in the region.

INDUSTRIAL DELIVERIES DURING THE PANDEMIC, BY QUARTER

KEY TAKEAWAY Project costs and timelines continue to be impacted by record levels of industrial construction. Even as the pandemic’s negative impact on supply chains lessens, materials and labor challenges remain, making it difficult for developers, landlords and occupiers to complete industrial projects on time and on budget. Given recent occupier demand, a significant slowdown in the construction pipeline is not likely anytime soon.

APAC LATAM Greater China Canada EMEA United States

250

200

150

MSF

100

50

0

Q1 2021

Q2 2021

Q1 2022

Q3 2021

Q4 2021

Q1 2020

Q2 2022

Q3 2022

Q4 2022

Q2 2020

Q3 2020

Q4 2020

*Q4 2022 data not available for other regions at time of publication. Source: Cushman & Wakefield Research

8 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023