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NYC Experienced Largest Increase in Office Fit-Outs Cost Last Year
New York City ranks as the third most expensive market for office fit-outs, with costs soaring by 14% to $213 per square foot, according to an Office Fit Out Cost Guide recently published by Cushman & Wakefield. It recorded the largest price increase among the top six markets in the Americas.
Despite rising costs and challenges such as material delays and labor expenses, the trend of upgrading office spaces to attract employees in a hybrid work environment is expected to continue driving fit out projects. Electrical expenses represent the largest portion of fit out costs, accounting for 21% of the total, followed by mechanical costs at 18%.
Although NYC experienced year-over-year cost increases across all categories except contingency, economic uncertainty and rising interest rates may impact the stability of planned construction projects, affecting new constructions, renovations, and conversions/redevelopments.
