Americas Office Fit Out Cost Guide 2024

CUSHMAN & WAKEFIELD, SAN DIEGO

COMMODITY AND CONSTRUCTION COST INCREASES HAVE DECELERATED, BUT PRICES REMAIN ELEVATED

Prices have fallen from pandemic highs for most commodities, but prices remain elevated relative to pre-pandemic levels. 2 > Most commodities saw a year-over-year (YOY) drop with the exception of cement. Lumber prices fell 4.5% YOY which was notable given Canadian wildfires in 2023 threatened supply. Lumber prices remain elevated, 24% higher, relative to pre-pandemic but are below their 10-year average of 3.9%. > Copper and steel prices are above pre-pandemic levels by 45% and 42%, respectively. Prices fell YOY for both,

with copper prices dropping 3.5% and steel prices declining 15%. This price deceleration will likely be short-lived; the forecast calls for prices to increase 6.2% for copper and 3.8% for steel by year end 2024. > Cement prices are 37% higher than 2019 levels and rose an additional 8.1% in 2023. The recent cost escalation is partially due to the closing of a large cement plant in Mexico, thereby impacting supply and demand. Prices are expected to tick up an additional 3.6% by year-end 2024.

COMMODITY PRICES OFF OF RECENT HIGHS COST INDEX FOR LUMBER, STEEL, COPPER AND CEMENT

Forecast

Lumber

Copper

Steel (Pipe and Tube)

Cement

800

700

600

500

400

300

Cost Index

200

100

0

Jan-11

Jan-17

Jan-12

Jan-21

Jan-15

Jan-13

Jan-18

Jan-16

Jan-19

Jan-14

Jan-10

Jan-22

Jan-23

Jan-24

Jan-20

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted

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Cushman & Wakefield