Americas Office Fit Out Cost Guide 2024

Cushman & Wakefield’s winter 2024 survey of 62 general contractors (GCs) showed optimism that material delays will improve, and some project timelines won’t remain extended. This is the most optimism GCs have expressed in the last three years. GENERAL CONTRACTORS EXPECT FURTHER IMPROVEMENT IN MATERIAL LEAD TIMES AND PROJECT TIMELINES > For the first time in three years, GCs saw material lead times improve significantly: 44% saw slight decreases and 1.0% saw a significant decrease in the last six months. This is a huge improvement over our winter 2023 survey where only 4.0% saw a decrease. > In the next six months, 66% expect lead times to remain the same and 23% expect them to decrease slightly, while only 11% expect lead times to increase slightly (8.0%) or significantly (3.0%). This is also a significant contrast to our winter 2023 survey where 56% of GCs expected lead time to increase slightly (43%) or significantly (13%). > Project timelines have remained extended, as 70% of GCs experienced no change in timelines in the last six months. While 36% expect timelines to increase slightly (26%) to significantly (10%), 13% expect them to decrease slightly in the next six months. This is also improved sentiment from winter 2023 when only 4.0% of GCs expected some improvement in timelines.

KEY TAKEAWAY GCs are seeing supply chain relief in their buildouts; expectations for steady or even shorter timelines have increased from last year. However, some key components—including electrical switchboards and generators—continue to have extended lead times of 40+ weeks . Tenant improvement and fit out projects will still need to be closely managed to ensure on-time delivery.

6

Cushman & Wakefield