Office Fit-Out Costs Rising
Supply chain constraints, inflation and increased labor costs are applying upward pressure
Tom Murphy, director, project services, Hiffman National, tells GlobeSt.com that, working on second-gen office space improvements, 7% to 10% escalations were consistent in Houston, Chicago, and San Diego.
“While we are beginning to see some stabilization of construction materials over the past four months, we believe overall pricing will continue to reflect the pressures from transportation and labor constraints,” Murphy said.
“Many of the increases we have been experiencing are remnants of escalations from the prior two years. During that time, customers filled warehouses to alleviate supply chain interruptions. The result is manufacturers are now reporting a decline in sales by as much as 40% in Q1-23 compared to Q1-22.”
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.