According to Turner & Townsend’s latest International Building Market Survey, the San Francisco market seized the New York market with an average building cost of $ 417 per square meter. These costs are expected to increase by 6 percent next year. The average building cost in New York was $ 368 per square meter and $ 362 per square meter last year. This year, these costs are expected to increase by 3 percent.

Nevertheless, New York has the highest labor cost of US $ 101.30 per hour on US markets. According to the report, the city was second only to Zurich, which has an average of $ 110.70 per hour. San Francisco is just under $ 90 an hour under New York, followed by Seattle at $ 75.50 an hour and Chicago at $ 69.60.

In terms of overall costs, Seattle ranked sixth with an average of $ 338 per square meter and ranked eighth with $ 290 per square meter in Chicago.

Some markets find it difficult to find enough skilled workforce for their projects, and overall costs are increased, especially with tariffs on materials such as steel and aluminum. According to the report, owners can expect the cost of construction of general core and shell construction of buildings with high and metal structural frameworks to be increased by 5 to 10 percent. According to the report, steel costs in the US increased 22.4 percent last year.

“The big challenge for the San Francisco Bay Area and wider U.S. construction market is meeting this demand in the face of import tariff talks, escalating materials costs, and a shrinking skilled labor force,” John Robbins, Turner & Townsend’s managing director U.S. and North America head of real estate, said in a statement. “Simply turning to local supply isn’t solving the problem… clients are considering other strategies to develop their real estate – from alternate and more unique construction methods, to reductions of their build programs.”

Source: The Real Deal

Melike Vodina /