By Mark Clayton, Executive Managing Director of Development & Project Management
- This past year, a noticeable rise was seen in construction costs. For both labor and material costs, there was an increase of approximately 3.5-5% in the Boston market.
- The Boston market’s average construction costs are higher than the rest of the country, ranging from $110-125 per sq. ft. This compares to a national average of about $100 per sq. ft.
- Due to the higher-than-normal volume of work in the Boston market, when choosing a consultant, it is important to evaluate their existing workload to ensure they have the capacity to meet expectations.
- Most new space designs are moving away from traditional office concepts and in the direction of a more open and collaborative environment.
- Furniture and AV components have become a critical part of the open environment concept, adding to overall first-time costs.
- Workplace strategy has become a buzzword in the industry. Understanding how and where people work is critical in the initial design process, and providing flexibility for employees has become a competitive differentiator.
- Due to the volume of work in the City of Boston, the overall permitting process timeline has been extended, which should be taken into consideration when reviewing a complete construction schedule.
Interested in reading more of our spotlights? Look no further. Read more in our 2017 Market Outlook.