Con s
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5 1 0 2 nual n a h t 5 1
Market conditions in the construction economy are constantly changing. As a service to our clients, we annually poll leading general contractors to give an update on current conditions.
Office Buildings & Parking Structures The office building figures apply to site, and core & shell only, while the corporate interiors costs reference a 25,000-sf floor plate. Using several generic building types, we have compiled our findings below.
ONE-STORY FLEX OFFICE BUILDINGS: $76 to $82/SF
HIGH-RISE OFFICE BUILDINGS: $109 to $149/SF
($73 to $78/sf in 2014)
($105 to $142/sf in 2014) 7 stories: $109 to $121/sf ($105 to $115/sf in 2014) 14 stories: $119 to $130/sf ($115 to $125/sf in 2014) 20 stories: $127 to $138/sf ($123 to $133/sf in 2014) 25 stories: $137 to $149/sf ($132 to $142/sf in 2014)
One-story shell buildings designed to accommodate uses ranging from traditional offices to light assembly, high-technology lab applications. Typical projects are cold, dark shell steel structures with tilt-up concrete skins and punched openings. Cost includes $12 to $15/sf for sitework, assuming five spaces/1,000 sf in a surface parking lot.
LOW-RISE OFFICE BUILDINGS: $88 to $98/SF ($84 to $94/sf in 2014) Two- to three-story, larger footprint shell buildings designed with speculative building features. Typical projects are composite steel structures with bar joist roof structures with tilt-up concrete skins and punched openings. Cost includes $10 to $12/sf for sitework, assuming four spaces/1,000 sf in a surface parking lot.
MID-RISE OFFICE BUILDINGS: $97 to $109/SF ($92 to $102/sf in 2014) Four- to six-story, 25,000-sf footprint shell buildings designed with speculative building features. Typical projects are composite steel structures with pre-cast concrete and glass skins. Cost includes $7 to $9/sf for sitework and minimal (visitor) surface parking. Typical projects have the majority of parking housed in an adjacent parking garage. See Parking Structures in the next column.
Seven- to 25-story, 25,000-sf footprint shell buildings. Typical projects are cast-in-place concrete structures with articulated pre-cast and curtainwall glass skins. Rising cost of concrete may result in some composite steel structures. Costs include less than $6/sf for sitework and minimal (visitor) surface parking. The majority of parking is in adjacent garages. See Parking Structures below.
PARKING STRUCTURES: $25 to $43/SF ($29 to $40/sf in 2014) Includes sitework costs. Cast-in-place concrete: $37 to $43/sf, without basement ($35 to $40/sf in 2014) Pre-cast concrete: $30 to $35/sf, without basement ($29 to $34/sf in 2014) Steel: $25 to $30/sf, without basement ($24 to $29/sf in 2014) Most office projects continue to build pre-cast or cast-in-place garages. The lower cost range examples would typically be for more efficient suburban sites. Small urban downtown and medical center sites with limitations may have higher costs than our ranges show.
trends Throughout 2014, Houston continued to see a significant increase in projects which, in turn, resulted in rising construction costs — due in part to manpower shortages and higher-priced materials. Predicted to continue in 2015, this trend was curbed by the drop in oil prices. If oil prices stabilize throughout the year as expected, this would prompt flat construction costs into summer with the possibility of price drops in the fall. However, due to the competitive market for lease space, interior construction costs may not decline — especially for large users acquiring space in recently completed base buildings. Amenities are still top priorities for clients, however, they are leveraging them for more flexible uses and deploying technology to create “work cafes” and “innovation lounges”— causing costs to understandably rise. Re-evaluating personal work environments and collaboration areas to get the most out of their real estate, companies are deploying office and workstation sharing policies for their mobile employees more than ever before, resulting in reductions in total Net Rentable Area. © Kirksey 2015. Cost information reflects market conditions in and around the Houston area.
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