![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/04\/High-rise-construction.jpg\")
What does it cost to build a commercial building?<\/strong><\/h2>\nFundamentally, cost increases are expected to accelerate as public policy demands are directed at the existing projects underway and new healthcare facilities come online. The art of construction cost estimating is always a balance of subcontractor and general developer experiences balanced with current material considerations. Gordian provides an extensive construction cost database through their RSMeans data products. RSMeans data (see below) allows for the estimation of hard costs based on location, for material and labor costs.<\/p>\n
TOP 10 MSA BUILDING COSTS<\/strong><\/h3>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/04\/Top-10.jpg\")
Source: Data provided courtesy of Gordian. Numbers are based on the RSMeans data standard conceptual of five- to 10-story office buildings defaulted to 80,000 square feet<\/p><\/div>\n
BOTTOM 10 MSA BUILDING COSTS<\/strong><\/h3>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/04\/Bottom-10.jpg\")
Source: Data provided courtesy of Gordian. Numbers are based on the RSMeans data standard conceptual of five- to 10-story office buildings defaulted to 80,000 square feet.<\/p><\/div>\n
Why are construction costs so high?<\/strong><\/h2>\nIn 2019, construction costs rose nationally by 2 percent, and they are predicted to continue to rise this year, said Tim Duggan, vice president of Data and Analytics for Gordian. These increases have been driven by a shortage of labor and increasing prices for materials. Which factor is most responsible for higher construction costs?<\/p>\n
\u201cI would say that at this point they are probably equivalent,\u201d<\/em> said Duggan. \u201cBoth are competing as drivers. Tariffs have a very quick but short-term drive up on costs which then settle back down, while wages seem to be a continuing issue for driving up the cost.\u201d<\/em><\/p>\nHow are construction costs impacting developers?<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/04\/Tim-Duggan.jpg\")
Tim Duggan, vice president of Data and Analytics for Gordian. Photo courtesy of Gordian<\/em><\/p><\/div>\nThe difficulty of acquiring skilled labor has impacted construction of all asset classes in terms of higher costs as well as delayed timelines. \u201cLabor is one of the biggest challenges that our construction partners think they will face in 2020,\u201d<\/em> said Paul Vastag, vice president of Business Intelligence for Continental Properties. \u201c\u2026the one thing that can and will slow down the supply pipeline is construction costs.\u201d<\/em><\/p>\n
Source: Data provided courtesy of Gordian. Numbers are based on the RSMeans data standard conceptual of five- to 10-story office buildings defaulted to 80,000 square feet<\/p><\/div>\n
BOTTOM 10 MSA BUILDING COSTS<\/strong><\/h3>\nSource: Data provided courtesy of Gordian. Numbers are based on the RSMeans data standard conceptual of five- to 10-story office buildings defaulted to 80,000 square feet.<\/p><\/div>\n
Why are construction costs so high?<\/strong><\/h2>\nIn 2019, construction costs rose nationally by 2 percent, and they are predicted to continue to rise this year, said Tim Duggan, vice president of Data and Analytics for Gordian. These increases have been driven by a shortage of labor and increasing prices for materials. Which factor is most responsible for higher construction costs?<\/p>\n
\u201cI would say that at this point they are probably equivalent,\u201d<\/em> said Duggan. \u201cBoth are competing as drivers. Tariffs have a very quick but short-term drive up on costs which then settle back down, while wages seem to be a continuing issue for driving up the cost.\u201d<\/em><\/p>\nHow are construction costs impacting developers?<\/strong><\/h2>\nTim Duggan, vice president of Data and Analytics for Gordian. Photo courtesy of Gordian<\/em><\/p><\/div>\nThe difficulty of acquiring skilled labor has impacted construction of all asset classes in terms of higher costs as well as delayed timelines. \u201cLabor is one of the biggest challenges that our construction partners think they will face in 2020,\u201d<\/em> said Paul Vastag, vice president of Business Intelligence for Continental Properties. \u201c\u2026the one thing that can and will slow down the supply pipeline is construction costs.\u201d<\/em><\/p>\n
Source: Data provided courtesy of Gordian. Numbers are based on the RSMeans data standard conceptual of five- to 10-story office buildings defaulted to 80,000 square feet.<\/p><\/div>\n
Why are construction costs so high?<\/strong><\/h2>\nIn 2019, construction costs rose nationally by 2 percent, and they are predicted to continue to rise this year, said Tim Duggan, vice president of Data and Analytics for Gordian. These increases have been driven by a shortage of labor and increasing prices for materials. Which factor is most responsible for higher construction costs?<\/p>\n
\u201cI would say that at this point they are probably equivalent,\u201d<\/em> said Duggan. \u201cBoth are competing as drivers. Tariffs have a very quick but short-term drive up on costs which then settle back down, while wages seem to be a continuing issue for driving up the cost.\u201d<\/em><\/p>\nHow are construction costs impacting developers?<\/strong><\/h2>\nTim Duggan, vice president of Data and Analytics for Gordian. Photo courtesy of Gordian<\/em><\/p><\/div>\nThe difficulty of acquiring skilled labor has impacted construction of all asset classes in terms of higher costs as well as delayed timelines. \u201cLabor is one of the biggest challenges that our construction partners think they will face in 2020,\u201d<\/em> said Paul Vastag, vice president of Business Intelligence for Continental Properties. \u201c\u2026the one thing that can and will slow down the supply pipeline is construction costs.\u201d<\/em><\/p>\n
How are construction costs impacting developers?<\/strong><\/h2>\nTim Duggan, vice president of Data and Analytics for Gordian. Photo courtesy of Gordian<\/em><\/p><\/div>\nThe difficulty of acquiring skilled labor has impacted construction of all asset classes in terms of higher costs as well as delayed timelines. \u201cLabor is one of the biggest challenges that our construction partners think they will face in 2020,\u201d<\/em> said Paul Vastag, vice president of Business Intelligence for Continental Properties. \u201c\u2026the one thing that can and will slow down the supply pipeline is construction costs.\u201d<\/em><\/p>\n
Tim Duggan, vice president of Data and Analytics for Gordian. Photo courtesy of Gordian<\/em><\/p><\/div>\n The difficulty of acquiring skilled labor has impacted construction of all asset classes in terms of higher costs as well as delayed timelines. \u201cLabor is one of the biggest challenges that our construction partners think they will face in 2020,\u201d<\/em> said Paul Vastag, vice president of Business Intelligence for Continental Properties. \u201c\u2026the one thing that can and will slow down the supply pipeline is construction costs.\u201d<\/em><\/p>\n