Average construction costs jumped nationally year-over-year

LA saw largest uptick

TRD New York /
Apr.April 16, 2018 02:30 PM

(Credit: Rider Levett Bucknall)

Average construction costs across the U.S. rose 4.2 percent last year, with Los Angeles logging the largest uptick, according to a new report.

Costs jumped 7.59 percent from January 2017 to January 2018, followed by San Francisco (6.23 percent) and Portland (6.05 percent), a report by construction consultancy firm Rider Levett Bucknell shows. New York City saw a 3.29 percent increase, putting it behind Las Vegas, Denver, Chicago and Boston. Chicago experienced a 5.35 percent increase. Of the 12 cities tracked, only Honolulu saw a year-over-year dip in costs with a 1.74 percent decrease.

The report notes that while many feared that a new 25 percent tax on steel and a 10 percent tax on aluminum imported from certain countries would hurt the industry, the impact is not yet evident.

“With the suspected exception of a jump in sales of antacid tablets and enrollment in meditation classes, as of this writing, the federal tariffs proposed for imported steel and aluminum have had few quantifiable effects on the marketplace,” Julian Anderson, president of the firm’s North America office, states in the report. “The upshot has been murky, at best, and has resulted in questions that will only be answered over time.”

Those questions include whether or not the changes will lead to a shortage of steel, as was the case after similar tariffs were imposed in 2002, Anderson noted.

Here are average hard construction costs for key submarkets in cities tracked by The Real Deal (South Florida was not included in Rider Levett Bucknell’s report) :

New York City
Prime office: $375-$575 per sf
Multifamily: $200-$375 per sf
Single family: $275-$400 per sf
Retail: $275-$425 per sf
Hotel: $400-$600 per sf

Chicago
Prime office: $280- $450 per sf
Multifamily: $160-$340 per sf
Single family: $220-$420 per sf
Retail: $185-$280 per sf
Hotel: $185-$280 per sf

Los Angeles
Prime office: $225- $340 per sf
Multifamily: $185-$295 per sf
Single family: $190-$335 per sf
Retail: $150-$330 per sf
Hotel: $355-$520 per sf

 

Related Articles

arrow_forward_ios
From left: Steven Rockefeller Jr., Wayne Morrison, and Florian Haffa

Past the pandemic: Rockefeller family pitches global luxury development projects

Past the pandemic: Rockefeller family pitches global luxury development projects
Don Peebles: A leader’s role “is to look at things in balance”

Don Peebles: A leader’s role “is to look at things in balance”

Don Peebles: A leader’s role “is to look at things in balance”
When the coronavirus crisis subside, offices could do away with hot-desking (Credit: iStock)

How the coronavirus could change the office of the future

How the coronavirus could change the office of the future
US Steel’s sprawling South Works site is about the size of Downtown Chicago. At left, Common, who wants to partner with developers on a mixed-use entertainment district there, and Dan McCaffery, whose vision for a 13,000-home community fizzled out. (Credit: Common by Paras Griffin/Getty Images; McCaffery via McCaffery Interests; aerial by Cushman & Wakefield)

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity
Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

TRD Talks: How developers are contending with coronavirus
Mayor Bill de Blasio halted ULURP, stalling projects like 960 Franklin Avenue, Rikers Island and Industry City 

These projects could be held up by New York’s rezoning freeze

These projects could be held up by New York’s rezoning freeze
Morris Moinian and 1150 6th Avenue (Credit: Noam Galai/Getty Images, Google Maps)

Morris Moinian to sell site of stalled hotel project

Morris Moinian to sell site of stalled hotel project
An aerial of Flushing's waterfront and New York City Council member Peter Koo (Credit: Google Maps)

Massive Flushing waterfront development stirs opposition

Massive Flushing waterfront development stirs opposition
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...