2019
Media Production Facility Cost Report
The evolving content production landscape It has been another exciting period in the media and broadcast world.
Data has become a word you cannot escape. The OTT trend continues with more 18-35 year olds viewing on a device than ever, but with recent reports of cable subscriber losses stabilizing. The NFL is streaming games live, including the Superbowl, while beIN Sports has had carriage problems. ESports are gaining traction with expanding viewers and now actual locations. Sports gambling is now becoming legal after years of being a toxic topic, and shopping is being integrated into content websites allowing viewers to â€œâ€Śshop the momentâ€?. One giant media merger was effectively denied this year after being referred out of the FCC and another, approved by the FCC, is being challenged a second time by the DOJ. Diversity and inclusion have become more than buzzwords but continue to challenge. And with all that, the pressure to produce more content, faster, for more formats, with less staff and for less cost, is increasing all the time. We are sure that no one reading this will be surprised to hear that the overall cost of acquiring, building and maintaining a production location continues to rise. Construction costs are rising every year. Real estate cost are rising with operating costs also on an upswing. More than ever, there is pressure to reduce overall costs.
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... the pressure to produce more content, faster, for more formats, with less staff and for less cost, is increasing all the time.
The most interesting recent production trend we have seen, from a facilities and physical space perspective, is the rise of cloud based live production technologies. At the Winter Olympics in PyeongChang earlier this year, Discovery and Eurosport mounted a huge operation relying heavily on elements of remote and cloud production, to support a requirement for 21 languages in 48 markets Just recently, we saw an article about a new virtual switcher that can be controlled by a laptop allowing live production on the run. For now it seems it will now be used for smaller live events, but the technology for the large event live production is also evolving. At NAB 2017 we saw a demonstration of live event production with control surfaces in one location and, by communicating through a fiber network, all of the back end technology was located somewhere else (control surfaces were in Las Vegas with the back end of the technology in NY). Video was switched in Las Vegas between two live shot interview locations, one in NY and one in the UK, audio was mixed and controlled in Vegas and everything played out in sync with no apparent latency issues. In large part, this is possible because of a strong fiber system, but the technology is developing quickly to take advantage of the available fiber and cellular networks, and the effect of these changes on facility requirements could be dramatic. While both of these technologies are being discussed for sports production, an update of the REMI concept, it’s easy to imagine that the station groups, many of whom instituted remote master control systems as soon as they became feasible, would begin to use a version of this technology for local station programing. The local facility space requirements could be reduced and the power and air conditioning simplified, both leading to the construction and operational cost of a production and broadcast location being greatly reduced.
Every few years we at hlw recruit a group of professionals to review the state of the media industry from the viewpoint of the cost of building the spaces required for media production and broadcast. In our latest edition of the Cost Index, Skanska USA Buildings NY has developed numbers for television broadcast spaces as well as the data for cost variables across the country. They are joined by Matt Construction of LA, and Matt has prepared numbers regarding the costs for construction of largescale film type facilities. Working with both of these firms we feel we have a good overview of the types of costs required for new or renovated facilities. In acknowledgment of widening out our view we have changed the name slightly - it is now the “Media Production Facility Cost Report” We have also been joined, as Guest Editor, by Darrell Wenhardt of CBT Systems. Darrell has helped with the new content in this year’s Index, which is an Industry Survey, and he has written a very thoughtful summary of the discussion of the results. This year we surveryed a wide group of media creative and technical professionals as well as design consultants and associated industry professionals, and asked everyone to answer this question: “If you were to be tasked tomorrow with the doing an entirely new broadcast content production facility, what would be the three most significant design goals you would want to achieve? We asked everyone for 75 words (not even engineers can count…) and we are grateful for the serious and thoughtful responses. We know it takes time out of an already busy day to sit down and write something, and we want to thank again everyone who was so generous with their time. The first response will come from the dean of sports production. The last is from one of the smart guys in the trenches, a guy who stands the dust of the jobsite (with the construction always behind schedule) and no matter what, gets the job completed for the always too soon On Air date.
If you were to be tasked tomorrow with doing an entirely new broadcast content production facility, what would be the three most significant design goals you would want to achieve?
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Industry survey response
Ken Aagaard Executive Vice President CBS Sports
We think it’s important to have a collaborative facility with an open newsroom with plenty of shared space to meet and exchange ideas. The days of compartmentalized staff based on beats or production groups is a thing of the past. Our approach is to create openness which cultivates a team atmosphere and inclusiveness. Sure we seat teams together but all content providers share space in an open architecture with low privacy panels allowing for conversation and discussion. Joe Truncale GVP - Operations + Engineering, Spectrum Networks NY1
Three most significant design goals: yy Flexible low voltage conveyance infrastructure yy Data center optimized for efficiency of HVAC and flexible power distribution (distributed breaker/pdu) yy Leveraging cloud processing to minimize on premises data center yy How best to use recycled Amish barn wood within the interiors Duane Yoslov Senior Vice President, Diversified
We would be looking for more efficient open spaces. More than likely less technical space will be needed as infrastructure will reside elsewhere. Workflow is important to all of us so better adjacencies will become even more important.
The MEP systems supporting the broadcast content production facility must continue to evolve! The main issue relates to Studio power-cooling loads. The all-LED lighting approach continues to reduce total loads however there is now a mandate to have all Studio lighting powered by UPS which increases total UPS loads. In addition, the quantity of large-format CLED monitors are increasing the powercooling loads thereby offsetting some of the savings from LED lighting! So while the 40-50 watt/SF power-cooling design loads are no longer, the numbers are still in the 20-25 watts/SF range, with even higher loads where street-side studios are part of the solution. And given the overall technology continues to evolve to more ‘IP-based’ than ‘traditional broadcast’, the total power-cooling loads for the overall broadcast facility will continue to creep higher and must be balanced carefully! Arthur Metzler Managing Principal, AMA Consulting Engineers
I would like to combine traditional broadcast and digital teams from a physical standpoint allowing for improved collaboration. The technical work areas must be flexible enough for multi-use and lastly, the building must be sized appropriately for growth and allow for future innovation. The building cannot just solve today’s needs, as it should be functional for the next 20-30 years. Rick Anderson Executive Vice President, Global Media PGA TOUR Entertainment
The broadcast environment is becoming much more like the collaborative office environment. Acoustic isolation and separation from adjacent activities is becoming more relaxed, and the “background” is becoming part of the experience. Microphone types and techniques have helped to relax the level of acoustic isolation and sound absorption, while allowing the talent to be within the surroundings while still achieving a quality audio signal. “Quiet/absorptive” environments will still be needed for some instances, but can typically be dedicated smaller spaces. Jim Merrill Acoustics Discipline Head, SM&W
MEDIA PRODUCTION FACILITY COST REPORT
The studio would be equipped with a completely motorized remote control rigging system, network-driver lighting power and control system with remote device management capabilities, and all tunable white studio lighting luminaires.
Far too little time is being invested in the preplanning and budgeting of new studio infrastructure. The studio may seem like a simple black box, but early planning mistakes with structural, cooling and electrical leads to costly corrections. yy Take full advantage of the long-term operational cost savings by planning an all LED broadcast lighting package. The initial capital investment in lighting fixtures is 4-times more than it used to be with the tungsten filament lamp but the new high cost can easily be offset with far less electrical and mechanical requirements. yy Using a professional lighting systems integrator will help create your initial budget and avoid costly underestimates. yy Concentration on Studio infrastructure, control flexibility along with some expansion capability, are all important design goals that need to be considered during design. Bill Capps John Gebbie, Barbizon Lighting
Goals: yy Low background noise yy Excellent sound isolation. yy Reverberant sound energy control. The challenge is creating spaces which achieve these goals cost effectively, in proper relationship to all the other requirements (workflow, thermal comfort, lighting, IT and broadcast systems integration, energy efficiency, sustainability, accessibility, etc.). Success requires a knowledgeable client,
Norm Russell, LC Principal Consultant The Sextant Group
the right location, enough space (especially for infrastructure), a collaborative design team, a skilled and motivated contractor, and an appropriate budget.
in Mexico. The quality of their work might be better. The knowledge of soccer (Mexican) will be better. And there is very little risk.
Ron Eligator Partner, Acoustic Distinctions
Olek Loewenstein Senior Vice President of Strategy and Operations, Sports, Univision Communications Inc.
INCREASE IN REMOTE PRODUCTION: more and more live events will be produced remotely. Travel to and from venues is becoming cumbersome and increases the costs and the downtime of the crew (traveling) significantly. This will generate that more production hubs will be built but at the expense of traditional production houses. Something of the sorts is what NEP is doing in Australia. The business model will change. Renting trucks won’t make sense anymore. You are better off renting services. DECREASE IN PRODUCTION OPS FOOTPRINT: More and more productions will be done for digital. So despite growing quality of content, media is now consumed in smaller and smaller devices. Producing from a 4K studio won’t be needs as much as simple productions that will go straight to digital platforms. This means more encoders and more wires on site, but less people and less space needed for production. INCREASE IN ONE MAN BANDS AND MULTITASK: The traditional roles of producer, editor, graphics, post production, audio will continue evolving. And space and resources will continue decreasing. MIGRATION TO LOWER COST GEOGRAPHIES: Given the connectivity that we have today, there is nothing preventing me from having all my editors
If I had three design goals for the sorts of production spaces I use and create, it would be: yy Flexibility: capability to scale down to a well-lit jam session on a DSLR (or even iPhone) but be ready for anything, including a full broadcast set yy “Perpetual Beta” or “Creative Experiment-ability”: Technology and content are evolving at a pace I have never seen before. yy To stay on top of it (or before I really commit to a technology or set-up) I want to get my hands on it in a “sandbox” format and be able to play around with ideas. If lightning strikes, I want whatever I am doing to already be integrated. If it doesn’t, I want to be able to pivot quickly to something else yy Blurred Lines: these days a CEO gets just as much screen time as talent, and is not always comfortable in a clinical studio environment. As workflow moves to multimedia, and a blend of live and produced, all the sharp edges and hard walls between “studio”, “work”, and “play” are merging into spaces where everyone is comfortable to do their best. Parke Rhoads Principal, Vantage Technology Consulting Group
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This is more a response to the most recent goals of our clients undertaking new broadcast facilities and how it may affect the design of facilities moving forward; yy Centralized broadcast control software, will it eliminate more production staff/ seats? – Automation of broadcast control systems across all technical disciplines is going to continue as the technology continues to improve and displace labor costs. Any new facility will require very robust and flexible network infrastructure to enable the automation and centralization to continue and adapt to changing protocols and expanding wireless control options. yy Offsite control rooms, will it eliminate some control rooms and their staff entirely? – In addition to automation of all broadcast technologies under centralized control systems, the ability to remotely control broadcast engineering over long distances both nationally and internationally is becoming more pervasive. Control rooms are already running shows in real time that are taking place on a different continent. As this technology matures it may change what types of support and control spaces are actually required in a new broadcast facility. yy Shoot everywhere, is the entire facility a quasi-studio? – The transition from Appointment based programming to On Demand, web based, programming stokes the thirst for the fastest (freshest) video content, while the lower cost of good quality, compact video cameras is enabling/requiring that reporters/talent constantly record updates to freshen
Rick Anderson Executive Vice President, Global Media, PGA TOUR Entertainment
I would like to combine traditional broadcast and digital teams from a physical standpoint allowing for improved collaboration.
their posted content. The ability to do a quick “web hit” from their desks; a corner of the newsroom, backstage, the control room or the green room lends both authenticity and urgency to traditional news programming. This requires that more areas of a broadcast production facility are designed with video capture in mind. Mark London EVP Systems, Lighting Design Group
Clients today are finally able to realize the promise that a modern IP-centric tech core requires substantially less square footage than its traditional baseband predecessors. At the same time, given the amount of fiber being deployed and the density of the equipment being installed, longstanding rules of thumb are being turned on their ear – things like heat loads per rack, power requirement and cable conveyance. In short, everything in a modern tech core needs a good, long think. Michael Wright Senior Vice President, Diversified
MEDIA PRODUCTION FACILITY COST REPORT
Ideally, I would create a collaborative work environment where operations and editorial could physically coexist and co-function as needed... Zach Toback Executive Director, Production & Operations ABC News
yy Mobile-first design philosophy of the media production infrastructure and supply chain. Treat traditional stationary broadcast/cable TV as a special case of mobile video displays that happen to be attached to the wall. yy Highest bandwidth standard IP network for specialized on premise or remote creative operations and for accessing, sending, and receiving scalable cloudbased standard multi-resolution content. yy Minimize the movement of content and people. Use the talent where they are and access the content without moving it. Blake White Founder, Strategic Technology Institute
The most important goal is to design a broadcast facility that considers the current and future use of the space and the objects located within them. Costs can be saved by considering the furniture design early on in the process in concert with the rest of the facility, meeting the goals of a modular and adaptive system with proper ergonomics and access for each operator to the equipment they may need. Jansen Hahn CEO, TBC Consoles
Three most significant design goals: yy We want to design a “future proof” facility that will easily adapt to the rate of change that is faster than ever yy We want to design a “digital first” facility which means that production is planned with social media platforms in mind
The three most important design goals: yy Design for/with transformation in mind. With the Media and Entertainment business changing so fast particularly with mergers and acquisitions that what the space is needed to do today may change tomorrow even it is not driven by technology change. yy Design for a reduced technology footprint. Cloud computing and storage has evolved to the point that a central equipment room is an expense that can no longer be afforded but is also to restrictive and limiting.
yy And we want to plan an all IP infrastructure with the likelihood of “cloud assist”
yy Design for collaboration. Projects are increasingly being done across geographies so the space to systems need to make that as seamless as possible.
Bruce Allen Interlink
Jim McGrath Senior Vice President, Discovery
We work with the client to understand their MEP experience history; developing project technical drivers. Influenced by our past project successes we ultimately embrace these now collective client goals for the facility. Those goals most often revolve around:
Ideally, I would create a collaborative work environment where operations and editorial could physically coexist and co-function as needed. Secondly, I would build a studio where multiple projects could be produced simultaneously with varied backgrounds and interview/desk locations. Lastly, I would create an all IP integrated facility and move away from as much “heavy metal” and attempt to virtualize as much as possible.
yy The day one and future capacity needs of the facility. yy T he redundancy/maintainability of MEP systems within the project budget. yy Accommodating project needs aesthetically in the, often constrained, site/building envelope. Bryan Gauger, Principal, ARC Engineering
Zach Toback Executive Director, Production & Operations ABC News
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Liam Colllins Director, Head of Americas You Tube
The broadcast and studio environments are stable and move forward on fixed and predictable paths. There is no room for the “flavor of the day” technology, but at the same time, the environments have become very network centric. These network elements include router infrastructure, digital audio platforms and the transfer of information via high data rate fiber within the production events to the content dissemination platforms. The data rates required for the modern broadcast environment are now exceeding 10Gbps, and higher data rates will continue to be the trend. Ron Willis Audiovisual, SM&W
yy Medium-cost modularity. Although I am not a big fan of multi-purpose spaces that often end up not doing any single thing well (aka low-cost modularity), because of the fast pace of change in our industry I’d want my new facility to be mindful that we might choose to invest in modest changes a couple of years down the road.
Inspirational. Studios are full of creative people. Production facilities that are all utility are going to leave a lot of value on the table because fewer ideas will be nurtured inside.
yy I would make it a point to include a redundant 3-phase track busway power distribution system in all equipment racks rooms (MDF, IDFs, Server Rooms, Broadcast Equipment Rack Rooms, etc.), and mains-diverse redundant power sourcing to all operations consoles and Broadcast Service Panel (BSP) end-points. This will allow for flexibly assigned, locally protected/switched/metered rack power disconnects, Red/Blue circuit redundancy via local-ATS created redundancy for console mounted single line cord M&C equipment items. yy I would make it a point to provide cold-air containment infrastructure and 100% load redundancy via multiple, manifolded smaller HVAC CRAC units for a highly efficient, resilient and extensible mechanical system. Highly dense packing of server equipment in equipment room areas is quickly becoming more commonplace as the trend towards virtualized broadcast processing applications accelerates, and blade servers allow even more density.
yy Inspirational. Studios are full of creative people. Production facilities that are all utility are going to leave a lot of value on the table because fewer ideas will be nurtured inside (see also #2). I will happily sacrifice some functionality to enable more inspiration.
yy I would make it a point to architect an IT backbone for the facility that accommodates redundant 40G fiber optic connectivity to all desktops where media producers would likely be stationed, and multiple 100G fiber optic connectivity from MDF to each IDF. A robust media-over-IP backbone in new facilities is the norm as opposed to a “future-friendly” addition.
Liam Colllins Director, Head of Americas, You Tube
Scott Griffin Senior Vice President Engineering, Diversified
yy Collaborative. Encourage and invite people to mix and interact periodically.
Obviously, the three most significant design goals of any facility should be yy Acoustics yy Acoustics yy Acoustics. One observation I’d like to make is that the long-heralded but too-rarelyrealized “media convergence” is applying pressure to broadcasters to consider how their content translates across multiple platforms. Radio talk programs are being made available for live-streaming or on-demand, and producers are realizing that proper lighting, camera angles, and backdrops are important — a dimly-lit security camera perspective of the top of the guests’ heads surrounded by studio clutter really detracts from the conversation. On the other hand, when television programs are simulcast as audio-only, bad audio becomes painfully obvious — traffic noise, off-camera voices, studios that sound like a gym, or poor level matching between segments doesn’t cut it anymore. Richard Schrag Partner, Russ Berger Design Group
More conduit and cable paths everywhere! Anonymous Senior Integration Engineer
MEDIA PRODUCTION FACILITY COST REPORT
Survey response review Darrell Wenhardt
Having the opportunity to review these responses to the survey question has been a real pleasure. The diversity of thoughts expressed was at first a little overwhelming, but on a second and third read, I distilled the key elements into three areas: Space Infrastructure Inspiration (A bit of a stretch here but I will explain)
Space As Keith pointed out in the Introduction, SPACE is a key factory to any building plan, old renovation or new building from the ground up. Acquisition costs and Construction costs are not getting lower, in fact in many markets these costs are now outpacing that of the mighty Equipment Capital Expense that we all chase with CFO’s on our tail. So, Space, and how we build it out is a key component that must be analyzed and honed to protect this major investment in the short and the long term. From the survey responses, Collaboration was a frequent theme. It was accompanied by, Transformation and Compartmentalize, as in eliminate compartmentalization and transform to an “Open” collaborative working environment. It is no accident that in the pursuit of a “better” and more efficient workflow many businesses are turning to “open work spaces”. These have been found to encourage a better mixing of staff ideas and efficient sharing of information. There is also another benefit and this goes along with the cost of building out the space. Less walls, more open space, means less cost per square foot of build-out AND lower cost when the space needs change to meet new operational requirements. As we apply new technologies and new productivity software, workflow enhancements, facility space allocations and relationships will continue to shift and evolve. The Balance of Space allocation was another theme that came from the responses, as this is also undergoing an industry wide shift. Comparing the previous HLW studies and looking at Local Stations, Networks, Entertainment Media, and Sports Networks against current facility program needs, shows a shift away from highly technical, permanently built out spaces towards more flexible workspaces.
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In many cases, this comes with the loosening of production standards. Much of this is tied to the fact that almost all traditional “broadcast” operations include work flows that now have components of Web based production and distribution. I am shaken by the lessening of what we have known for years as Broadcast Standards, but this is the competitive climate we now work in. Along with this shift in the operational spaces, the responses also indicated a shift in the sacrosanct Central Equipment and Server Rack Rooms. Cloud and REMI based production support sub-systems are changing the Technical Core of most facilities. Equipment Life Cycle periods are shortening and changing the landscape of the traditional rack room. Despite what some industry executives feel should be a reduction of Power and HVAC needs in these critical spaces, the opposite is in many ways occurring. New digital processing equipment, especially equipment that now runs at data rates 10 to 50 times higher that we have seen in the past 20 years, is increasing the power density we find in the equipment support racks. This is increasing per rack power and circuiting requirements and at the same time increasing spot cooling requirements in theses spaces. So, not only are the Production-Operations spaces in a state of change, but also the Core Equipment environments. Lesser space assigned here will be justified, but the Power and HVAC support systems need more attention then ever, along with plans to address technology turn-over with what I call “Leap-Frog-Space”. New systems need space in rack rooms to be implemented while current systems stay on-line until the new are fully commissioned, set-up, tested and proven. 15 to 20 percent of an equipment room’s allocation of racks are good targets. SPACE and how to balance space needs, is key to controlled budgets, production and operational Workflow, as well as being in an efficient position to address changing Technologies.
Infrastructure Based upon several responses, and other clients that we have worked with over the past several years, I was reminded that during the programming and design process the project team needs to look well beyond the short-term horizon. CFO’s like to use, 5 to 7 years but we need to try to project 20 to 30 years towards the future. This may sound strange to some, but an interesting reality is that until recently a good number of Television Broadcasters have been operating out of 50 and 60 year-old spaces and Infrastructures. The same situation will follow in the future. The arguments to do-it-right and spend -the money-now are well justified, if difficult. Key infrastructure items such as Acoustics, Electrical Power, HVAC and Signal Conductivity need to be woven directly to the fabric of a new or modernized building and not “bolted-on” after the fact. Acoustics is key in many ways. Although many standards have relaxed, the essence of noise and vibration control are as relevant as ever. The proper methods to control these issues is by implementation of acoustically designed construction methods at the heart of the construction process. These methods may involve all systems including structural, wall-ceiling-floor buildout, plumbing, electrical, and mechanical HVAC systems. With a good handle on noise and vibration control, the final touch then becomes an Interior Design component in the application of Absorbent and Reflective materials, which can change with the times and be adaptive to the interior design requirements. Electrical Power – Despite the move to LED studio and general lighting, and the associated influence on HVAC systems demand, our survey responders warn of actually increasing electrical power loads in facilities. While LED Studio Lighting may be saving some 50 percent on lighting power and associated HVAC loads, we are seeing the implementation of large LED Video Walls and other Set Electrics that may burden the electrical and mechanical systems of a studio with other loads. Another take on electrical power was that these systems need to become more flexible and sustainable. Higher power densities of equipment components,
MEDIA PRODUCTION FACILITY COST REPORT
Acoustics is key in many ways. Although many standards have relaxed, the essence of noise and vibration control are as relevant as ever.
needs for flexible distribution across all areas of a facility, and the reliability of the power grid, make design and execution of UPS Power and Power Distribution a key infrastructure component that should not be underestimated. Signal Conductivity – The survey highlighted the term “More” for Signal Cable Path Capacity and Flexibility as reoccurring themes. Similar to Acoustics, this is often a hard sell to CFO’s. At just 10 years old, we are seeing many facilities with overflowing Cable Trays and over-stuffed Raised Access Flooring Systems. Besides lack of Electrical Power Capacity (and of course funding) nothing will impede the implementation of Technology up-grades and/or expansion than the inability of a facility to deliver Signal Paths between equipment groupings. The key to implementing both the Access Flooring and overhead Cable Tray solutions for Long Term, and stable, Signal Conductivity organization are strong Cable Management practices. Up-to-date Systems Documentation and Cable Labeling are key, along with Cable Color Coding that can guide engineering staffs for better management of the facility’s signal cable plans. It is important to control the situation before it becomes over loaded and un-manageable. Mechanical-HVAC – The re-allocation of Electrical, Personnel and even Solar heat loads is also driving a change Mechanical-HVAC systems design. The challenge here is to develop mechanical system solutions that provide flexibility and scalability, allowing them to adapt to space allocation changes and heat load shifts, all the while trying to do the socially correct thing and minimize overall power consumption.
Inspiration Often lost, especially by us Engineers, Architects and Facility Designers, is what the very basics of Television, Video-Audio Entertainment Media, Sports Networks, Social Media Outlets really are doing… that is “Story Telling”. The term Inspiration as defined by Oxford Dictionary is: ”…the process of being mentally stimulated to do or feel something, especially to do something creative.” Story Telling becomes its best with the influx inspirational moments. Why shouldn’t the facilities that we Design, Build and Work in, that require all the physical attributes that the survey responders and I have covered in the above discussion, also address the Creative Environment. Creative people populate the facilities that we develop. Only focusing on Space and Infrastructure often compromises the final finish when funds are too often just not available to fashion an inspirational atmosphere. Why not make it all work together and build the whole package SPACE, INFRASTRUCTURE and INSPIRATION? Darrell Wenhardt
Other factors Sustainability represents both a challenge and an opportunity for rethinking the approach to existing facility infrastructure and design for the occupant. Between changing regulations and growing wellness trends, content producers and broadcasters are starting to understand the connections between building specific-issues such as energy efficiency and resiliency and occupant-specific issues like occupant comfort and wellbeing. The new norm for the industry is to include sustainable practices, policies, and materials in the design and construction of a broadcast facility. There has been a traditional argument that improvements to indoor air quality must come at a cost to energy efficiency. However, recent cognitive function studies have shown that the productivity of an employee when ventilation is doubled is more than 150x greater than the resulting energy cost. These studies further demonstrate that when located in a high-performing green certified building, employees showed a 44% increase in applied activity level and a 73% increase in crisis response when measured against high-performing non-green certified buildings.* Consistent with this environmentally and socially responsible mindset is a desire to seek sustainable approaches regardless of whether or not the client will pursue formal third-party certifications such as LEED** for the new or upgraded production facility. Broadcast facility energy and usage needs can be challenging when working with some of these rating systems. Still, many architectural and engineering firms are directed by their patrons to adopt an aggressive, proactive strategy for identifying and implementing sustainably driven design and material decisions. When there is a potential for added financial burden resulting from the choice to “go green,” these can be alleviated by the reduction of
long-term operating costs and improved productivity of occupants with fewer sick days. Moreover, facility owners benefit from the positive perception associated with the extra effort of pursuing these ratings. Major renovation and new facility projects are at an advantage in the contemporary construction environment, as current practices take into account “green” costs that are not considered optional. Significant government mandated energy requirements are already in place for initiatives, such as those involving lighting strategies, many of which mandate the use of new technologies and approaches. It is possible to clearly demonstrate cost savings by introducing green design measures during the early phases of a project and by sustaining these efforts with the support of an integrated team throughout the life of the project—that is in lieu of tacking on individual sustainable measures late in the design process.
* Harvard T.H. Chan School of Public Health, Syracuse University Center of Excellence — The Total Indoor Environmental Quality Laboratory (TIEQ), SUNY Upstate Medical School, and United Technologies. “The Impact of Green Buildings on Cognitive Function.” ** LEED, or Leadership in Energy & Environmental Design, is a green building certification program sponsored by the US Green Building Council that recognizes best-in-class building strategies and practices. To receive LEED certification, building projects satisfy prerequisites and earn points to achieve different levels of certification.
Outlook 2019 As widely reported by the US commercial building construction media, construction costs have increased steadily in recent months when compared to previous years. As of the writing of this report, costs have increased approximately 8% – 12% overall from 2017 to 2018. Although some leveling off is expected, early indicators show construction costs may increase another 4% – 6% in the coming year. Due to a buoyant construction economy, we do still expect projects to commence in earnest, as interest rates are expected to continue to increase. We expect this to occur despite the fact that some locations are still experiencing elevated costs and the markets are only beginning to normalize after experiencing highs. Because pricing is continually on the move, the short to medium term outlook suggests cost advantages in bidding a construction project now rather than waiting for the market to move higher.
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Facility benchmarking Regional Television Station 52,031* USF
14% 3
33%
Major Market Television Station 92,611* USF
26
%
%
13%
Network News Bureau 30,508* USF
15%
4% 5%
22%
9% 8%
26% 30%
22%
28%
28%
38 %
52 %
BROADCAST
Media Content Production Network 68,960* USF
14%
59 %
BROADCAST
Regional Sports Network 51,465* USF
BROADCAST
Space Type Average WORKPLACE
15% 33
3%
%
22%
8%
15% 4%
29 %
7%
45%
10%
16%
26 %
41%
27%
40 %
36 %
BROADCAST
OFFICE SUPPORT
BROADCAST
BROADCAST
Key BROADCAST
WORKPLACE
OFFICE SUPPORT
Content production Post production Distribution Production support
*Circulation distributed throughout total USF
MEDIA PRODUCTION FACILITY COST REPORT
Cost outlook Purpose of this report HLW, together, with supporting data from Skanska USA Building and Matt Construction, has issued this report to assist anyone involved in the broadcast and media content production industry in determining probable costs for the creation or alternation of a content media production facility. The data contained within the report is designed to help with bracketing and benchmarking probable facility construction and project costs, including design, construction, renovation, and furnishing. This document is conceived as a benchmarking tool and is, therefore, not designed to replace a detailed cost estimate prepared during the course of a specific project. Rather, this document is intended to help you set a target and subsequently measure progress.
Accounting for future market fluctuations is critical when benchmarking. It’s important to allow for escalation contingency. The economic data shows that in the last twelve months preceding December 2018, costs have escalated approximately 4.5% in New York City and at an average of 3.5% nationally. The benchmarks shown in this document are derived from current market pricing. Therefore, this data suggests that we can conservatively project these benchmarks into future years and guard against labor and material escalation. For example, if your project is due to start in eight months and in New York City, take 3.5%, divide by 12 (months), and multiply by 8 (months). This is the factor that should be added to account for future cost increases.
Methodology We have employed a broad, multifaceted approach in generating the forecasts contained within this report. The methodology for developing the updated costs by facility type involved the following components. ff In-house cost indices from broadcast media project experience ff Analysis of contractor bids ff Review of nationally published cost data ff Review and analysis of labor rates and productivity All costs are given in Usable Square Feet (USF), defined as the actual enclosed interior space required to house the project or function. Rentable Square Feet (RSF) varies according to the location or city.
A NOTE ON HOW TO USE THIS INDEX The Costs as shown on pages 12 and 13 were primarily developed based on projects in New York, NY. New York is a very expensive place to build and subsequently the costs here run very high. The costs as shown on page 14 were developed based on projects in the Los Angeles CA area. It is critical that both of these sets of budget costs be considered in light of the chart on page 15, “Outlook by location”, which shows how costs in general will vary across the US. In any location these are complicated projects that require a hightly skilled workforce to complete properly.
MEDIA PRODUCTION FACILITY COST REPORT
Construction Cost Ground Rules
Construction Costs All hard construction. As a test, imagine raising your building into the air and turning it upside down. Whatever components don’t fall out (or rattle around within the building) are considered part of the hard construction cost. For the purposes of this report, when a broadcast and media production building is considered, construction costs also include the following aspects of a building. yy yy yy yy yy yy yy yy yy yy yy yy yy
yy yy yy
Walls and isolated wall assemblies Doors and acoustic doors Acoustic isolation and treatments systems Ceilings and isolated ceiling assemblies Mechanical systems and redundancy requirements Electrical power and distribution systems: service side transformers, backup generators, grounding systems, and UPS, PDU, and ATS systems Plumbing systems Fire protection systems: sprinklers and sprinkler booster pumps, pre-action systems, and clean agent systems Architectural lighting Broadcast lighting: grids, trusses, transformers, and DMX cabling and circuiting (but dimmer systems and racks do not apply) Long span construction to create studios and other double height spaces Raised and accessible floor systems Pathways, conduits, cable trays, and termination panels for broadcast, IT, and telecom systems are generally included. However, the actual cabling, racks, rack gear, servers, local interface devices, control surfaces, and computers are not included. Building management and automation systems Basic building commissioning Pantries or non cooking cafe; no cooking or kitchen/servery space
General Contractor’s overhead/profit or construction manager’s fee/general conditions vary dramatically by locale and contract type. These must be determined and added to any budget Finally, it is also customary and prudent to include a design contingency in the construction cost.
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What do you get for interior spaces per square foot
$140 – $170 per square foot yy Carpet (material cost $20/square yard)
yy Standard hollow metal doors and frames
yy VCT Flooring, vinyl base, ceramic tile
yy Minimal lighting
yy No exposed structural elements
yy (2ft x 2ft, 2ft x 4ft or high hats)
yy No interconnecting stairs
yy Minimal architectural finishes
yy No slab openings
yy No minimal millwork yy (plastic laminate finish) yy Basic drywall construction yy Standard 2ft x 2ft acoustical ceilings
yy Standard paint finished
yy No exposed duct work
yy Standard pantry appliances
yy Basic wall covering
$200 – $260 per square foot yy Custom carpet yy (material cost $40-$50/ square yard ) yy Carpet tiles yy Custom Millwork yy Detailed drywall construction yy Sheetrock or acoustical ceilings with soffit and fascias
yy Custom doors and frames with sidelights
yy Exposed structural elements
yy Extensive array of lighting fixtures
yy Interconnecting staircase
yy High End architectural finishes
yy Slab penetrations
yy Specialized paint finishes
yy Architectural glass
yy Custom wall covering yy Exposed Duct work (round, oval)
yy Ornamental metal yy Access Floor
MEDIA PRODUCTION FACILITY COST REPORT
Major purchased items
Total project costs
The following major purchased items are not included in the construction costs.
Total project costs include the sum of all of the costs necessary for an owner or client to build a project. These additional non-hard construction costs (listed below) are referred to as “soft costs.” The predictable range of soft costs includes the following items.
yy General furniture. Items, such as desks, workstations, chairs, conference room furniture, furniture for common or break areas, file cabinets, coat hooks, artwork, etc., are considered “general furniture.” In addition, we consider items generally referred to as “FF&E,” or furniture, fixtures and equipment.
yy Architectural and engineering design service fees Other consultant fees yy Project Manager fees
yy Broadcast, IT, Telecom, and computer cabling
yy Set design fees
yy Telephone system, paging, and security systems
yy Broadcast technical design and integration fees
yy Desktop office computers
yy FF&E (see items listed under “Major Purchased Items”)
yy Broadcast technical equipment: racks, rack gear, servers, local interface devices or control surfaces, consoles, and computers
yy Construction Manager fees (if part of the project)
yy Broadcast lighting systems, including dmx systems, dimmer panels or racks and lighting instruments
yy Construction change orders and owner’s contingency yy Legal fees yy Permits and filing fees
yy Audio visual equipment
yy Enhanced Commissioning
yy Moveable or benchtop testing and repair equipment
yy General Contractor Fees or Insurance
yy ENG or microwave communication equipment
yy Antenna purchase, installation or filing fees
yy Set construction or installation
The unpredictable range of project soft costs can include land costs, financing costs, moving costs, and relocation and/ or business interruption costs associated with renovations. Together, these expenses could exceed the cost of construction. Critically, these costs are not under the control of the consultants or construction professionals, hence the lack of predictability.
yy Antennas, antenna design and surveys, and satellite dish equipment yy Signage yy Artwork yy Expanded or extended commissioning The Total Built Area Construction cost measures are based on gross square feet, which constitutes the total built area. Net, or usable area, is only a portion of what you are building.
Construction Costs and Predictable Overall Project Costs yy New construction, excluding land and financing, ≈ 70% – 80% of project costs. yy Renovation construction cost ≈ 65% – 75% of project cost.
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Rules of thumb for general technical interior construction PARTITIONS/DOORS $15-$21 WINDOW TREATMENTS $2-$3
STRUCTURAL $5-$7
ELECTRICAL $50-$68
PAINT/WALL COVERINGS $4-$5 MILLWORK $12-$16
CARPET/FLOORING $12-$16
ACOUSTICAL TREATMENT $5-$7 CEILINGS $10-$14 LIGHTING GRID $4-$5 SPRINKLER $5-$7
63 %
HARD COSTS
HVAC $39-$53 PLUMBING $4-$5
STRUCTURAL 2% PARTITIONS/DOORS 6% WINDOW TREATMENTS PAINT/WALL COVERINGS 1% MILLWORK 4%
1%
37 %
FURNITURE 11%
SOFT COSTS PROFESSIONAL FEES 8%
CARPET/FLOORING 4% ACOUSTICAL TREATMENT 2%
ARCHITECTURE 3% MISC. FEES, PERMITS 3%
CARPET (CEILINGS) 7% LIGHTING GRID 2% SPRINKLER 2%
IT/AV BUDGET 10%
PLUMBING 1%
HVAC 15% ELECTRICAL 18%
MEDIA PRODUCTION FACILITY COST REPORT
Broadcast technical and support facilities Cost per s/f
$288.25
WORKPLACE Workspaces ff Private Executive Offices ff Private Standard Offices ff Workstation standard ff Workstation touchdown ff Open Colaborative Areas
Ammenities and Support ff Confrence rooms ff Board Rooms ff Meeting Rooms ff Team Rooms ff Rehearsal Hall/Lounge ff Third places ff Huddle Room ff Focus Room ff Teelpresence Room ff Reception ff Executive Reception ff Sreeening Room ff Pantry ff Lunchrooms ff Vending Areas ff Coffee bar ff Training Room (35 Seats) ff Coat Closet ff Copy/Print Alcove ff File Room ff Mail Distribution ff Storage ff Security Room
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Cost per s/f
$372.00
PRODUCTION Studios ff Studio ff Photo Studio ff Insert Studio ff Flash Cam ff News Studio
Studio and Production Support ff Dressing Room ff Fitting Room ff Maintenance ff Rehearsal Hall/Lounge ff Studio Staging ff Storage ff Dressing Room ff Green Room ff Make Up ff Wardrobe Room ff Carpenter Shop ff Lighting Room ff Maintenance Shop ff Maintenance/Repair ff Spray Paint ff Staging ff Storage ff Audience Reception ff Audience Restrooms ff Audience holding ff VIP holding ff Prop storage ff Studio Loading Dock
MEDIA PRODUCTION FACILITY COST REPORT
T E C H N I C A L O P E R AT I O N S & SUPPORT
Cost per s/f
$418.50
Control Rooms
Post and Support
ff Large Control Room
ff Audio Control Room
ff Media Room
ff Data Room
ff Small Control Room
ff Audio Booth
ff Media Storage
ff Dimmer Room
ff Audio Control Room
ff Edit - Typical
ff Record Library
ff LAN Room
ff Video Control
ff Edit Room - DOM
ff Support
ff Radio Tech Space
ff Video Shading
ff Edit Room - Enhanced
ff Transmission
ff Server Room
ff Audio Sweetening
ff Edit Kiosk ff Edit Room - Graphics
ff News Digital Live Stream
ff Telecommincations
ff Master Control
ff Media Lab
ff Rack Room
ff Media Library
ff Screening
ff Transmission
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MEP AREAS
Cost per s/f
$1213.21
ff Base Building Mech. Room ff Electrical Closet ff Tel/Data/Closet (IDF) ff MDF Room ff Electrical Closet ff Tel/Data/Closet (IDF) ff Fire Command Room ff Studio MERs ff Central UPS Room ff Utility Service Space ff Electrical Room ff Life Safety Switch Gear ff Telephone Room
INFRASTRUCTURE UPGRADES ff Base Building Mech. Room ff Electrical Closet ff Tel/Data/Closet (IDF) ff MDF Room ff Electrical Closet ff Tel/Data/Closet (IDF) ff Studio MERs ff Central UPS Room ff Utility Service Space ff Electrical Room ff Life Safety Switch Gear
Cost per s/f
$104.75
HLW Š 2019
Large scale film facilities
Stages:
$405/GSF
ff Stages will be constructed in buildings approximately 36,000 SF ea. and have 35-0’ clear height. ff Stages are constructed using tilt up concrete walls with bowed wood truss and plywood sheathing forthe roof structure.
Production Flex Buildings:
$445/GSF
ff Production Flex Building budget assumes a 4-story structural steel framed building with punched windows and Plaster/articulation.
ff Stages have wood framed catwalks, elephant stage doors, sound locks/ vestibules at the stages entries.
ff Budget includes all the tenant improvements, including dressing rooms, showers, make up rooms, green rooms, open office space and some individual offices/conference rooms, and restrooms.
ff Budget assumes construction of multiple Stages.
ff Budget assumes a building of approx. 100,000 sf.
Basecamp (office building) Interiors:
Onsite Parking:
$190/GSF
$55/site area
ff Budget includes open office space and some individual offices/ conference rooms, and restrooms.
ff On grade parking, to allow for parking for the talent trailers/module buildings, including drainage & site lighting.
ff Level of finish and amenities along with proportion of open and closed workspace will affect final cost.
ff Budget assumes a combined Basecamp and parking of approx. 200,000 sf.
Basecamp (office building) core and shell:
$245/GSF
ff Budget based on a 4-story structural steel framed building with punched windows and plaster/articulation.
Mill Building:
$265 to $275/GSF
ff Budget based on using PreEngineered Building (Butler type) for the building structure, exterior wall metal panels & Roof panels.
MEDIA PRODUCTION FACILITY COST REPORT
HLW © 2019
Outlook by location Local market conditions vary. Local conditions tend to be uneven, but the underlying market pressures, e.g., increased prices for commodities, steel, and cement due to global demand, will result in price increases irrespective of the local markets. Costs are going up nationally.
Seattle 0.75
Boston 0.90 New York 1.00
San Francisco 0.85
Philadelphia 0.85
Chicago 0.91 Denver 0.58
DC 0.67
LA 0.76
Dallas 0.54
New Orleans 0.52 Miami 0.67
MAJOR CONCLUSION The most influential cost driver in 2019 will be material pricing volatility and skilled labor shortages due to market pressures in local markets. As the volume of work in NYC remains relatively high, we expect subcontractors to continue to be strategic in pursuits, ultimately resulting in upward cost pressures. In general, costs can be expected to increase 4% – 6% on the East and West Coasts and 3% – 5% mostly everywhere else (over 2018 levels).
MEDIA PRODUCTION FACILITY COST REPORT
Contact us
Written by Keith Hanadel, Principal Media & Entertainment and John Gering, Managing Director of HLW International LLP, with research by Pratod Padalkar of Skanska USA Building and Hakim Khalil of Matt Construction. HLW International, a 134-year-old design firm with practices in architecture, interior design, planning, and consulting, collaborated with Skanska and Matt to develop our Media Production Facility Cost Report. This index has been created to assist decision-makers as they plan for the future. The index is an efficient tool for the assessment of cost options for facility changes under consideration. The index takes into account the typical characteristics of the type of space needed, the level of infrastructure required, the estimated costs of individual components in the space, and what materials can be provided within various cost ranges. A series of companion charts have been developed to guide broadcasters and production facility professional in the preparation of budgets as this work is considered.
For additional information contact: HLW 115 Fifth Avenue, 5th Floor New York, NY, 10003 www.hlw.com
Keith Hanadel Principal Media & Entertainment +1 212 353 4946 khanadel@hlw.com John P. Gering Managing Partner +1 212 353 4744 jgering@hlw.com
Skanska USA Building 350 Fifth Avenue, 32nd Floor New York, New York 10118
John Tamborino Vice President Preconstruction +1 917 438 4546 Pratod Padalkar Preconstruction Director +1 917 438 4526
MATT Construction 9814 Norwalk Boulevard, Suite 100 Santa Fe Springs, California 90670
Steve Matt President and CEO +1 562 903 2277 smatt@mattconstruction.com Hakim Khalil Senior Vice President/Chief Estimator +1 562 903 2277
CBT Systems 12585 Kirkham Court Poway, California 92064
Darrell Wenhardt Founder +1 858 536 2927 darrell@cbtsystems.tv
MEDIA PRODUCTION FACILITY COST REPORT