Americas Office Fit Out Cost Guide 2024

OFFICE FIT OUT COST GUIDE 2024

CONTRACTORS EXPECTATION OF LABOR COSTS REMAINS UNCHANGED CUSHMAN & WAKEFIELD CONSTRUCTION CONTRACTOR SENTIMENT SURVEY, WINTER 2024

GC sentiment on labor costs was relatively unchanged from Cushman & Wakefield’s winter 2023 to winter 2024 sentiment surveys.

> Two-thirds of GCs expect labor costs to increase slightly (62%) or significantly (3.0%) in the next six months, which is similar to last year’s survey results.

WHAT IS YOUR EXPECTATION FOR OVERALL LABOR COSTS OVER THE NEXT SIX (6) MONTHS?

Decrease Significantly Decrease Slightly No Change Increase Slightly Increase Significantly

100%

3%

3%

80%

62%

64%

60%

40%

20%

31%

31%

3%

0%

Winter 2023

Winter 2024

Source: Cushman & Wakefield Research

KEY TAKEAWAY

Persistent labor constraints are reflected in GC pessimism that labor costs will continue to increase. Attracting skilled talent with higher wages and attractive benefit packages is one of the tools used to fill open positions. Construction has an older than average workforce so disproportionate retirements (of skilled field leaders and foremen, for example) create upward wage pressure when retirees are replaced.

CUSHMAN & WAKEFIELD, AUSTIN

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