The costs to construct / renovate and furnish office space are key components in your company’s overall cost of space, particularly under current economic conditions.
During the past few years, the costs of labor and materials have increased sharply while the lack of availability of each has become a significant problem. In addition, municipal permitting periods have doubled and even tripled in many areas. All of this at a time when corporate operations are less tolerant of delays and cost overruns.
There are, however, several steps that you can take to mitigate these issues including screening and choosing vendors such as landlords, contractors, architects and movers carefully. (A good tenant representative will help you locate and qualify these service providers). Also, be aware that unionized labor generally costs + 25% more than non-union labor. Lastly, understand “rule-of-thumb” costs for general construction / relocation items. The following should prove helpful:
