NORTH AMERICA

INDUSTRIAL
CONSTRUCTION
COST
GUIDE
2023
INTRODUCTION
Construction activity in the
industrial sector has raced to
keep up with robust demand
of the last two years in North
American markets. While industrial
construction pipelines continue
at historically high levels, the
sector is facing several headwinds.
Pandemic-related supply chain
constraints, which helped drive
commodities costs up, continue to
have a lingering impact on overall
costs and material lead times.
A significantly higher interest
rate environment in the United
States provides additional upward
pressure to costs. The fed rate
is currently 4.25%-4.5% up from
nearly zero in March 2022. As the
sector faces a potential cooling
down in 2023, we are closely
monitoring the costs and material
lead times which could allow
projects more flexibility in their
delivery timelines.

43
MARKETS IN
NORTH AMERICA

The Guide includes comprehensive construction

costs including all relevant trade codes, general
conditions, fees and contingency. The Guide
specifically excludes FF&E, IT, audio/visual,
and security cost for the office component and
soft costs or purchase of land for the overall
industrial project.

2 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 C U S H M A N & WA K E F I E L D

KEY
TAKEAWAY
• Steel prices remain elevated
at a 20% increase year-over-
year (YoY). Prices are ECONOMIC OVERVIEW
forecast to drop slightly
and level out over the next Strong demand for industrial properties, fueled in great part by the rise
couple of years. in e-commerce, has led to historic levels of construction in the sector.
Competition for materials in a commodity constrained market, coupled
• After reaching peak levels with inflationary pressures, has driven construction costs higher across
in 2021 Q2, lumber pricing all real estate sectors.
has moderated, registering
Commodities Pricing Update: Pandemic related supply chain
a 6% increase YoY. Pricing
constraints, which led to elevated commodities pricing, have begun
is forecast to level out but
to ease. Bottlenecks of container ships at ports are no longer the
remain above pre-pandemic norm. According to FreightWaves, North American container ship
levels for the next few years. traffic on November 23rd was down 60% from recent highs. Only 59
container ships were waiting for a berth. However, this was still above
• Copper prices have faced pre-pandemic levels, which were typically in single digits. The easing of
significant volatility, but traffic at ports may signal forthcoming easing of materials availability.
after hitting a peak at the That said, due to continued pent up demand, costs have not fallen to
beginning of this year, 2022 pre-pandemic levels.
Q1, they have fallen 16% on a
YoY basis. A modest drop in Concrete pricing has increased 14% from Q3 2021 and is currently at its
prices is forecast for 2023. peak pricing and YoY growth. Though pricing is unlikely to fall, the rate
of growth will slow to more moderate levels in the next couple years.

​COMMODITY PRICE INCREASES MODERATING​

Cost Index for Lumber, Steel and Copper​

Forecast Lumber Steel (Pipe and Tube) Copper

800

700

600 20% -16%

increase decrease
YOY YOY
500
Cost Index

400

300

6%
200 increase
YOY
100

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted​

CUSHMAN & WAKEFIELD 3

 C U S H M A N & WA K E F I E L D

Building Costs Moderate: Easing in materials pricing has KEY

led to slower increases of building costs. The annual change
in the ENR building cost index was still elevated at 11.4% in
2022 Q3, though down from 15.4% the previous quarter.
TAKEAWAY
Building costs are forecast to ease next year and level out
in the longer term. However, an influx of capital from the Despite slower rate of cost
federal Infrastructure Investment and Jobs Act, the CHIPS escalation, according to
Act and the Inflation Reduction Act will fuel continued the Cushman & Wakefield
construction growth in the near term, potentially delaying a contractor sentiment survey1,
return to pre-pandemic pricing. GCs generally expect costs
to continue to increase in the
• A component of the ENR building cost index is skilled next six months. 65% of GCs
labor, which includes union wages plus fringe benefits expect their costs to increase
for carpenters, bricklayers and iron workers. Skilled slightly (63%) to significantly
labor costs grew 3.5% YoY, their largest annual increase (6%), while 76% expect their
in 10 years, illustrating labor constraints and inflationary supplier prices to increase
impact on wages.
slightly (63%) to significantly
• Another important consideration in the coming quarters (13%). This sentiment is more
will be construction financing. In the current climate, it optimistic than a year ago
has become increasingly difficult to finance new projects. when 96% of GCs expected
While this won’t necessarily impact projects already their supplier prices to
underway, it could have a dampening impact on the increase slightly (64%) to
longer-term pipeline. significantly (32%).

1 During the fall of 2022, Cushman & Wakefield surveyed

over 50 general contractors across North America focusing
on industrial projects. The survey gauged their sentiment on
topics related to costs, labor and material lead times, among
others.

CONTRACTORS AND SUPPLIERS ANTICIPATE RISING PRICES

Cushman & Wakefield Construction Contractor
Sentiment Survey, December 2022

Decreased Slightly No Change

Increased Slightly Increased Significantly
100%
6%
16% 13%

80% 44%

63%
60%
63%
63%

40%
41%

20% 25%
16% 19%
13%
6% 6%
0%
General GC's Subs & General GC's Subs &
Contractors Suppliers Contractors Suppliers

Past 6 Months Next 6 Months

2
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/deloitte-2019 millennialsurvey.pdf

Source: Cushman & Wakefield Research

4 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 NEW CONSTRUCTION STARTS ACCELERATED THROUGH 2022
Value of New Construction Starts: Non-Residential Buildings, 12-Month Trailing Average

$400,000

$375,000

$350,000
Non-residential
building starts
$325,000
declined 19.9% from
February 2020 to
Millions USD, SAAR

$300,000

$275,000 April 2021.However,

$250,000 industrial starts did not
decline over this period.
$225,000

$200,000 As of September 2022,

$175,000 non-residential starts
rose 32.7% year-over-
$150,000
year. 
$125,000

Source: Dodge Data & Analytics: New Construction Starts Report

KEY
TAKEAWAY
• Labor constraints will
continue to impact
construction employment in
Employment and Construction: Non-residential new
the near-term. An increase
construction starts accelerated in 2022. After slowing from
in retirements due to an
February to April 2021, starts accelerated and peaked in
aging workforce, coupled
September 2022 at a 32.7% increase on a YoY basis. While
with a lack of young workers
increased materials costs did not slow starts in 2022, the
from the overall talent pool addition of accelerated interest rate increases on financing
is impacting wages and could slow the growth as costs are compounded.
costs as well as project
timelines. The introduction • U.S. construction employment grew 3.8% YoY basis in
of skills-based programs for 2022 Q3. Wages in the construction sector have risen at a
young workers in addition faster pace in order to attract talent in a labor constrained
to competitive wages may market. On a YoY basis, wages grew 11.4% in 2022 Q3.
help fill the talent gap in
the coming years. A recent • Canadian construction employment grew nearly 6.0%
survey by The Associated YoY as of 2022 Q2, while wages grew 3.5% YoY. Wage
General Contractors of growth have been more moderated in Canada. However,
America (AGC) found that inflationary pressures may impact near-term wage
70% of respondent firms growth.
plan to increase headcount
in 2023, however, over 80%
are having difficulty filling
open positions. Additionally,
the AGC survey indicates
that companies will increase
pay (72% of respondent
firms), provide incentives
and bonuses and increase
their corresponding payment
of benefit packages to retain
and attract talent.

CUSHMAN & WAKEFIELD 5

Construction Timelines: Cushman & Wakefield’s
construction contractor sentiment survey indicates
that material lead times and project execution timelines
continued to increase in the last six months. Of

KEY
contractors responding, 44% believe that lead times
had remained constant (38%) or decreased slightly
(6%); the remaining 56% of respondents believe lead
times increased slightly (38%) or significantly (19%)
over the previous six months. Project execution delays
have been more challenged. Only 9% didn’t experience
TAKEAWAY
increases while 86% saw slight (69%) to significant (19)
increases. A recent report from Associated Builders
Construction contractors
and Contractors points to project backlog increases expect increased challenges
in commercial construction 2 . As of November 2022, in project execution timelines
the backlog increased to 9.1 months, the highest level and material lead times. The
since 2019 Q2, indicating that timelines will remain vast majority (85%) expect
constrained. Large commercial projects have been a slight (66%) to significant
major contributor to backlog increases. (19%) increases in material
lead times. This is marginally
more optimistic than
2 Commercial, Institutional and Health Care Construction Drive ABC’s Backlog Indicator sentiment from a year ago
to Highest Level Since Q2 2019”; Associated Builders and Contractors; https://www.abc. when 88% of GCs expected
org/News-Media/News-Releases/entryid/19722/commercial-institutional-and-health-
care-construction-drive-abcs-backlog-indicator-to-highest-level-since-q2-2019; accessed
material lead times to increase
December 16, 2022. slightly (36%) to significantly
(52%). While the industry may
see material lead times easing,
significant issues remain with
electrical gear and regionally
with core materials, such as
cement and sand.

LEAD AND EXECUTIONS TIMES ARE EXPECTED

TO CONTINUE TO INCREASE
Cushman & Wakefield Construction Contractor
Sentiment Survey, December 2022

Decreased Slightly No Change

Increased Slightly Increased Significantly
100%

19% 19% 19% 22%

80%

38%
60%

69% 66%
40% 72%

38%
20%

9%
9%
6% 6% 3%
0% 3%
Material Project Material Project
Lead Times Execution Lead Times Execution
Time Time

Past 6 Months Next 6 Months

Source: Cushman & Wakefield Research

6 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 C U S H M A N & WA K E F I E L D

INDUSTRIAL MARKET UPDATE

Growth in Industrial Demand: The industrial sector has been among

KEY
the winners in the wake of the pandemic. Skyrocketing e-commerce
demand—along with focus on improved supply chains and increased

TAKEAWAY
interest in manufacturing onshore—has driven North American industrial
demand over the past three years. In the U.S. alone, over 1.3 billion
square feet (bsf) was absorbed between 2020 and the end of 2022.
That is 56% higher than the next best three-year period (2017-2019)
and is 100 msf larger than all of the industrial space in the Americas’ Record demand has driven
largest market, Chicago. Looking forward, e-commerce demand may sub-4% vacancy rates across
be easing but retail, manufacturing, battery manufacturing and storage, the region. As of Q4 2022, the
semiconductor manufacturing and specialty use demand is replacing it. national Canadian vacancy
rate was 1.4%, the U.S. 3.3%,
and both Mexico City and
Monterrey, Mexico were below
STRONGEST 3-YEAR PERIODS OF NET ABSORPTION (MSF) 3%. As vacancy has grown
600 #1 tighter industrial asking
1,336 MSF rents have increased. In Q4
2022, U.S. asking rents were
500 up 18.6% YoY and up 38%
since the beginning of the
pandemic. Canadian asking
400 rents have increased even
#2
#4 #5 #3 854 MSF more substantially: up 45%
300
721 MSF 684 MSF 838 MSF YoY and 81% since Q4 2019.
Latin American rents are down
from pre-pandemic highs but
200 have increased by 12% YoY.

100

Source: Cushman & Wakefield Research

CUSHMAN & WAKEFIELD 7

 Record Level of Construction: New supply has not been
able to keep up with industrial demand, but certainly not
for lack of trying. Since the beginning of the pandemic,
over 2.1 bsf of industrial space has been delivered across
the globe. The Americas has accounted for 62% of that
new construction—1.2 bsf in the U.S., 68.4 msf in Canada
and 34 msf in Latin America. Additionally, a record level
of industrial space under construction remains. The
731 msf of space under construction in the Americas
represents 4.0% of current industrial inventory in the
region.

INDUSTRIAL DELIVERIES DURING THE

KEY PANDEMIC, BY QUARTER

TAKEAWAY APAC
250
LATAM Greater China Canada EMEA United States

Project costs and timelines

continue to be impacted by
record levels of industrial
200
construction. Even as the
pandemic’s negative impact
on supply chains lessens,
materials and labor challenges
remain, making it difficult 150
for developers, landlords
MSF

and occupiers to complete

industrial projects on time
and on budget. Given recent
occupier demand, a significant 100
slowdown in the construction
pipeline is not likely anytime
soon.
50

0
Q1 2020

Q4 2020

Q1 2021

Q1 2022
Q3 2020

Q4 2021

Q4 2022
Q3 2021

Q3 2022
Q2 2020

Q2 2021

Q2 2022

*Q4 2022 data not available for other regions at time of publication.
Source: Cushman & Wakefield Research

8 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 C U S H M A N & WA K E F I E L D

KEY
TAKEAWAY
The pipeline remains
strong, with over 230 msf
ABSOLUTE BASIS: COMPLETIONS SINCE BEGINNING OF of industrial space currently
PANDEMIC (Q1 2020-Q4 2022) under construction in the
five markets with the largest
Central Valley CA pipeline. Five U.S. Sunbelt
Charlotte markets have construction
Louisville West pipelines above 10% of current
Las Vegas South inventory: Phoenix, Savannah,
Nashville Northeast
Las Vegas, Charleston, Austin
Salt Lake City
and Fredericksburg. Outside
Midwest
of the U.S., Toronto has the
Denver Latin America most construction activity
Philadelphia Canada (21 msf) while Mexico City,
Mexico City Vancouver and Calgary each
New Jersey - Central have between 8 and 9 msf
Kansas City under construction. The two
Sao Paulo Mexico markets Cushman &
Savannah Wakefield tracks—Mexico City
Columbus and Monterrey—and three
Memphis
Canadian markets— Calgary,
Vancouver and London—have
Toronto
construction pipelines that
Indianapolis
amount to over 3.0% of
Inland Empire current inventory.
Phoenix
PA I-81/I-78 Corridor
Chicago
Atlanta
Construction Activity in Key Markets:
Houston
Construction activity has been broad-
Dallas/Ft. Worth
based as demand for additional space
0 20 40 60 80 has been strong across the region.
MSF Since the beginning of 2020, eight
*Latin America as of Q3 2022 different markets have seen more than
Source: Cushman & Wakefield Research
50 msf of new construction delivered
SHARE OF INVENTORY: COMPLETIONS SINCE BEGINNING OF and 19 markets have seen more
PANDEMIC (Q1 2020-Q4 2022) than 20 msf. This is led by large U.S.
Sunbelt markets—Dallas/Ft. Worth,
Total Completions Since 2020 Share of Inventory (rhs) Atlanta and Houston—and major
90 40% Midwest industrial hubs—Chicago and
Indianapolis. Outside the U.S., recent
Share of Current Inventory

80 35%
70 30%
deliveries have been largest in Sao
60 Paulo (27 msf) and Toronto (34 msf).
25%
50
On a percentage basis, smaller
MSF

20%
40 Sunbelt markets have led the way.
15%
30 More than a fifth of current inventory
20 10% has been delivered in the past three
10 5% years in Birmingham, Savannah and
0 0%
Austin. Already large industrial hub
markets have added approximately
Boise

Houston
Phoenix

Charleston

Memphis

Atlanta
Austin
Palm Beach County

Colorado Springs

Philadelphia

Louisville
Birmingham

Indianapolis
Savannah

Fredericksburg
Salt Lake City
Las Vegas

Columbus
Central Valley CA
Tampa

15% of inventory: Pennsylvania

I-81/I-78 Distribution Corridor (18%),
Indianapolis (16%), Phoenix (115%) and
Houston (14%).

Source: Cushman & Wakefield Research

CUSHMAN & WAKEFIELD 9

 C U S H M A N & WA K E F I E L D

KEY
TAKEAWAY
National and Market Vacancy Rates: The majority of North
American industrial markets currently have vacancy rates
below 5.0%, including 73 U.S. markets, 11 Canadian markets
and both markets in Mexico. In most cases, vacancies are
considerably tighter than was experienced during the Even with all of the
2000s expansion. In fact, even if all of the space currently aforementioned construction
under construction (731 msf) across the Americas were to likely outpacing tenant
deliver without any of it being leased, region-wide vacancy demand over the next
would remain below 7.0%, and North American vacancy few years, vacancy rates
(U.S. & Canada) would still be 7.2%. are expected to stay near
historical lows. National U.S.
• The ongoing tight market conditions and competition for vacancy is forecast to increase
space saw another quarter of rent growth in Q4 2022, by 100-130 basis points in
increasing 18.6% YoY. At $8.81 per square foot (psf), 2023, still a healthy level for
Q4 2022 is the third quarter to eclipse $8.00 psf in U.S.
the U.S. market.
industrial history. Asking rental rate growth will persist
going forward. However, growth rates are projected to
moderate compared to the double-digit growth rates
observed in recent quarters as the pipeline brings more
space to the market. There will be a flight to the quality
space that comes online.

CURRENTLY UNDER CONSTRUCTION

Markets with largest amount of square footage under construction
(as of Q4 2022)

Under Construction UC as % of Inventory

80 24%

70 21%

60 18%

50 15%
MSF

40 12%

30 9%

20 6%

10 3%

0 0%

*Mexico as of Q3 2022
Source: Cushman & Wakefield Research

10 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

VACANCY RATES REMAIN BELOW PREVIOUS LOWS
Select markets, U.S. & Canada

Q4 2022 Prior Cycle Lows (2002-2007)

12%

10%

8%

6%

4%

2%

0%

Source: Cushman & Wakefield

AMERICAS OFFICE FIT-OUT COST GUIDE 2022 CUSHMAN & WAKEFIELD 11

 INDUSTRIAL
COST
COMPARISONS
USING THE GUIDE

Estimated costs provided herein

are indicative of market averages
based on certain assumptions.
Exact costs for specific projects
may differ to those presented
here, and so we recommend
engaging a Cushman & Wakefield
Project & Development Services
professional to advise on precise
costings based on your unique
construction requirements.

12 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

MOST EXPENSIVE
AND
COST-EFFECTIVE
MARKETS
North American costs for industrial properties averaged
$84 psf for medium size projects (476,400 sf) and $78 psf
for large size projects (901,000 sf).

> The priciest markets are located in Western U.S. and Canada. Of the top six most
expensive markets, four are located on the West Coast and two are located in
Canada. The most expensive market is Portland, where costs for medium size
projects average $105 psf and large size projects average $98 psf.
Portland San Diego Oakland
Medium - $105 psf Medium - $101 psf Medium - $100 psf
Large - $98 psf Large - $92 psf Large - $93 psf
Calgary Seattle Montreal
Medium - $101 psf Medium - $100 psf Medium - $97 psf
Large - $98 psf Large - $92 psf Large - $93 psf

• Houston
> The most cost-effective • Memphis
markets include a mix of • Mexico City
markets in Mexico and the • Guadalajara
midwestern and southern U.S. • Nashville
• Louisville

CUSHMAN & WAKEFIELD 13

 BREAKDOWN
OF EXPENSES
BY CATEGORY
Costs are broken out into six major categories:
Site Work; Base Building Structural & Enclosure;
Base Building Architectural; Base Building MEP;
GC’s and GR’s & Fee; and Contingency

25% 24% 17%

Across all markets and project The second highest cost Site work accounts for 17% of
sizes, the structural (slab on category is building total costs across all markets
grade and structural framing enclosure (exterior wall, and project size.
system) is the largest category exterior panels, windows,
of fit-out costs, accounting for roofing, exteriors doors,
25% of the total. etc.) at 24% of total for both
medium and large projects.

7% 6% 5%

14 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

PDS AMERICAS
COST GUIDE –
PRICING CRITERIA
METHODOLOGY

• The industrial build-to-suit project data is based on • Allowances for site concrete, paving, landscaping,
modern-day distribution centers for two different storm retention and site utilities are included. The
sizes (476,400 RSF and 901,000 RSF). Office and pricing does not include soft costs or purchase of land.
other ancillary spaces customary in a distribution
facility are included. The intended construction of • Given the fluidity of the construction market, a ten
the building is either precast insulated panels or percent (10%) contingency allowance has been
tilt-up concrete panels with steel frame. The roof is included in the cost.
a Thermoplastic Polyolefin (TPO) roof pitched to
overflow scuppers for drainage. Floors are 8” thick • Costs in this guide were compiled from responses
slab with reinforced 4,000 psi concrete. Each building to a survey of general contractors (GCs) focused on
size has appropriate quantities of dock doors, levelers industrial properties. 50 GCs representing 43 North
and drive-in ramps and overhead door. The office American markets responded to the survey.
area is constructed with basic finishes excluding
Furniture, Fixtures or Equipment (FF&E) and low
voltage cabling, security or audio/visual equipment
and systems. The office area is fully conditioned
space with the warehouse unconditioned. Warehouse
includes LED high-bay lighting.

DISTRIBUTION CENTER COSTS

Medium and Large Projects by Market
Medium (476,400 RSF) Large (901,000 RSF)
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-
Atlanta
San Diego

Greenville
Miami

Minneapolis

Guadalajara

Memphis
Houston
Philadelphia

Monterrey
Portland

Oakland

Phoenix
Salt Lake

Greensboro

Dallas
Inland Empire
Calgary

Central Valley, CA
Vancouver
Denver

Toronto

Kansas City
Los Angeles

Charlotte
Orange Co.

Cleveland

New Jersey

Indianapolis

Detroit

Baltimore
Louisville

Mexico City
Nashville
Seattle

Montreal

Chicago

Pittsburgh

Columbus
Milwaukee
Penn Corridor

St. Louis
Cincinnati

Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 15

MEDIUM PROJECTS (476,400 RSF)
COSTS BY SEGMENT
AND MARKET
United States

SEGMENT COST BY MARKET (MEDIUM PROJECTS)

$0 $50 $100
Portland
San Diego
Seattle
Oakland
Central Valley, CA
Denver
Phoenix
Salt Lake
Los Angeles
Greensboro
Greenville
Miami
Charlotte
Orange Co.
Dallas
Inland Empire
Chicago
Cleveland
Pittsburgh
Minneapolis
Atlanta
New Jersey
Philadelphia
Indianapolis
Columbus
Milwaukee
Penn Corridor
St. Louis
Cincinnati
Site Work
Detroit
Base Bldg Structural &
Kansas City Enclosure
Baltimore Base Building Architectural
Louisville Base Bldg MEP
Nashville
GC’s and GR’s & Fee
Memphis
Contingency
Houston
Source: Cushman & Wakefield Project & Development Services

16 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

SEGMENT COST COMPOSITION BY MARKET (MEDIUM PROJECTS)

0% 20% 40% 60% 80% 100%

Portland
San Diego
Seattle
Oakland
Central Valley, CA
Denver
Phoenix
Salt Lake
Los Angeles
Greensboro
Greenville
Miami
Charlotte
Orange Co.
Dallas
Inland Empire
Chicago
Cleveland
Pittsburgh
Minneapolis
Atlanta
New Jersey
Philadephia
Indianapolis
Columbus
Milwaukee
Penn Corridor
St. Louis
Cincinnati
Site Work
Detroit
Base Bldg Structural &
Kansas City Enclosure
Baltimore Base Building Architectural
Louisville Base Bldg MEP
Nashville
GC’s and GR’s & Fee
Memphis
Houston Contingency

Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 17

LARGE PROJECTS (901,000 RSF)
COSTS BY SEGMENT
AND MARKET
United States

SEGMENT COST BY MARKET (LARGE PROJECTS)

$0 $50 $100
Portland
Oakland
Seattle
San Diego
Denver
Phoenix
Salt Lake
Central Valley, CA
Dallas
Los Angeles
Greensboro
Greenville
Orange Co.
Charlotte
Miami
Inland Empire
Cleveland
Indianapolis
Chicago
Atlanta
Columbus
Minneapolis
Cincinnati
Milwaukee
Pittsburgh
Louisville
St. Louis
Detroit
Kansas City
Site Work
Nashville
Base Bldg Structural &
New Jersey Enclosure
Philadelphia Base Building Architectural
Baltimore Base Bldg MEP
Penn Corridor
GC’s and GR’s & Fee
Memphis
Houston Contingency

Source: Cushman & Wakefield Project & Development Services

18 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

SEGMENT COST COMPOSITION BY MARKET (LARGE PROJECTS)

0% 20% 40% 60% 80% 100%

Portland
Oakland
Seattle
San Diego
Denver
Phoenix
Salt Lake
Central Valley, CA
Dallas
Los Angeles
Greensboro
Greenville
Orange Co.
Charlotte
Miami
Inland Empire
Cleveland
Indianapolis
Chicago
Atlanta
Columbus
Minneapolis
Cincinnati
Milwaukee
Pittsburgh
Louisville
St. Louis
Detroit
Kansas City
Site Work
Nashville
Base Bldg Structural &
New Jersey Enclosure
Philadelphia Base Building Architectural
Baltimore Base Bldg MEP
Penn Corridor
GC’s and GR’s & Fee
Memphis
Houston Contingency

Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 19

MEDIUM PROJECTS (476,400 RSF)
COSTS BY SEGMENT
AND MARKET
Canada (USD)

SEGMENT COST BY MARKET

$0 $20 $40 $60 $80 $100 $120

Calgary

Montreal

Vancouver

Toronto

SEGMENT COST COMPOSITION BY MARKET

0% 20% 40% 60% 80% 100%

Calgary

Montreal

Vancouver Site Work

Base Bldg Structural &
Enclosure
Base Building Architectural
Toronto Base Bldg MEP

GC’s and GR’s & Fee

Contingency
Source: Cushman & Wakefield Project & Development Services

20 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

LARGE PROJECTS (901,000 RSF)
COSTS BY SEGMENT
AND MARKET
Canada (USD)

SEGMENT COST BY MARKET

$0 $20 $40 $60 $80 $100 $120

Calgary

Montreal

Vancouver

Toronto

SEGMENT COST COMPOSITION BY MARKET

0% 20% 40% 60% 80% 100%

Calgary

Montreal

Vancouver Site Work

Base Bldg Structural &
Enclosure
Base Building Architectural

Toronto Base Bldg MEP

GC’s and GR’s & Fee

Contingency
Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 21

MEDIUM PROJECTS (476,400 RSF)
COSTS BY SEGMENT
AND MARKET
Mexico (USD)

SEGMENT COST BY MARKET

$0 $20 $40 $60 $80 $100

Monterrey

Guadalajara

Mexico City

SEGMENT COST COMPOSITION BY MARKET

0% 20% 40% 60% 80% 100%

Monterrey

Guadalajara

Site Work
Base Bldg Structural &
Enclosure
Base Building Architectural
Mexico City
Base Bldg MEP

GC’s and GR’s & Fee

Contingency
Source: Cushman & Wakefield Project & Development Services

22 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

LARGE PROJECTS (901,000 RSF)
COSTS BY SEGMENT
AND MARKET
Mexico (USD)

SEGMENT COST BY MARKET

$0 $20 $40 $60 $80

Monterrey

Guadalajara

Mexico City

SEGMENT COST COMPOSITION BY MARKET

0% 20% 40% 60% 80% 100%

Monterrey

Guadalajara

Site Work
Base Bldg Structural &
Enclosure
Base Building Architectural
Mexico City
Base Bldg MEP

GC’s and GR’s & Fee

Contingency
Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 23

24 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023
COSTS BY MARKET

MEDIUM PROJECTS (476,400 RSF): ALL MARKETS

Northeast US Eastern US Midwest US Southeast US Southwest US Western US Canada Mexico

$225

$200

$175

$150

$125

$100

$75

$50

$25

$0

LARGE PROJECTS (901,000 RSF): ALL MARKETS

Northeast US Eastern US Midwest US Southeast US Southwest US Western US Canada Mexico

$225

$200

$175

$150

$125

$100

$75

$50

$25

$0

Source: Cushman & Wakefield Project & Development Services

CUSHMAN & WAKEFIELD 25

LOCAL MARKET DATA
ATLANTA BALTIMORE
Medium Large Medium Large

Site Work $12.18 $11.55 Site Work $16.91 $13.81

Base Bldg Structural & Enclosure $42.30 $38.57 Base Bldg Structural & Enclosure $36.14 $33.64

Base Bldg Architectural $5.12 $6.76 Base Bldg Architectural $5.83 $6.07

Base Bldg MEP $5.71 $5.27 Base Bldg MEP $7.48 $7.17

GC's and GR's & Fee $6.90 $5.71 GC's and GR's & Fee $2.88 $1.88

Contingency $6.83 $6.42 Contingency $6.76 $6.15

Total Cost $79.03 $74.27 Total Cost $75.99 $68.72

CENTRAL VALLEY, CA CHARLOTTE

Medium Large Medium Large

Site Work $12.59 $10.69 Site Work $16.77 $15.02

Base Bldg Structural & Enclosure $53.34 $50.49 Base Bldg Structural & Enclosure $42.47 $37.88

Base Bldg Architectural $5.01 $6.27 Base Bldg Architectural $5.35 $6.98

Base Bldg MEP $6.45 $5.20 Base Bldg MEP $7.07 $6.76

GC's and GR's & Fee $8.53 $7.07 GC's and GR's & Fee $7.59 $6.79

Contingency $7.96 $7.38 Contingency $7.39 $6.87

Total Cost $93.88 $87.10 Total Cost $86.63 $80.31

CHICAGO CINCINNATI
Medium Large Medium Large

Site Work $12.97 $12.40 Site Work $15.98 $13.03

Base Bldg Structural & Enclosure $44.77 $40.59 Base Bldg Structural & Enclosure $35.27 $34.48

Base Bldg Architectural $5.13 $6.11 Base Bldg Architectural $4.87 $6.27

Base Bldg MEP $7.10 $6.10 Base Bldg MEP $9.10 $8.78

GC's and GR's & Fee $5.53 $4.48 GC's and GR's & Fee $4.88 $3.61

Contingency $7.27 $6.74 Contingency $6.71 $6.40

Total Cost $82.77 $76.42 Total Cost $76.81 $72.55

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

26 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 LOCAL MARKET DATA

CLEVELAND COLUMBUS
Medium Large Medium Large

Site Work $16.94 $13.81 Site Work $16.30 $13.29

Base Bldg Structural & Enclosure $37.38 $36.55 Base Bldg Structural & Enclosure $35.97 $35.17

Base Bldg Architectural $5.16 $6.65 Base Bldg Architectural $4.97 $6.40

Base Bldg MEP $9.65 $9.30 Base Bldg MEP $9.28 $8.95

GC's and GR's & Fee $5.17 $3.83 GC's and GR's & Fee $4.97 $3.68

Contingency $7.11 $6.78 Contingency $6.84 $6.52

Total Cost $81.41 $76.91 Total Cost $78.34 $74.01

DALLAS DENVER
Medium Large Medium Large

Site Work $14.48 $15.53 Site Work $17.09 $19.85

Base Bldg Structural & Enclosure $49.80 $46.61 Base Bldg Structural & Enclosure $40.47 $32.31

Base Bldg Architectural $3.55 $5.91 Base Bldg Architectural $18.29 $22.19

Base Bldg MEP $6.33 $5.76 Base Bldg MEP $4.75 $4.46

GC's and GR's & Fee $4.12 $3.54 GC's and GR's & Fee $2.81 $2.62

Contingency $7.50 $7.44 Contingency $8.20 $7.96

Total Cost $85.79 $84.80 Total Cost $91.61 $89.40

DETROIT GREENSBORO
Medium Large Medium Large

Site Work $11.93 $11.41 Site Work $17.06 $15.21

Base Bldg Structural & Enclosure $41.19 $37.34 Base Bldg Structural & Enclosure $43.15 $38.06

Base Bldg Architectural $4.72 $5.62 Base Bldg Architectural $5.35 $6.98

Base Bldg MEP $6.54 $5.61 Base Bldg MEP $7.07 $6.76

GC's and GR's & Fee $5.09 $4.12 GC's and GR's & Fee $7.64 $6.73

Contingency $6.68 $6.20 Contingency $7.50 $6.90

Total Cost $76.15 $70.31 Total Cost $87.78 $80.64

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

CUSHMAN & WAKEFIELD 27

LOCAL MARKET DATA
GREENVILLE HOUSTON
Medium Large Medium Large

Site Work $16.54 $14.79 Site Work $13.26 $9.29

Base Bldg Structural & Enclosure $43.27 $38.31 Base Bldg Structural & Enclosure $14.56 $11.94

Base Bldg Architectural $5.35 $6.98 Base Bldg Architectural $3.56 $4.96

Base Bldg MEP $7.07 $6.81 Base Bldg MEP $17.74 $15.57

GC's and GR's & Fee $7.67 $6.77 GC's and GR's & Fee $3.68 $2.35

Contingency $7.48 $6.91 Contingency $5.03 $4.24

Total Cost $87.39 $80.57 Total Cost $57.82 $48.34

INDIANAPOLIS INLAND EMPIRE

Medium Large Medium Large

Site Work $17.47 $15.44 Site Work $11.04 $9.25

Base Bldg Structural & Enclosure $37.35 $37.61 Base Bldg Structural & Enclosure $42.98 $40.57

Base Bldg Architectural $6.02 $6.78 Base Bldg Architectural $9.45 $10.91

Base Bldg MEP $7.73 $8.01 Base Bldg MEP $7.30 $6.10

GC's and GR's & Fee $2.97 $2.11 GC's and GR's & Fee $7.20 $5.99

Contingency $6.98 $6.88 Contingency $7.27 $6.79

Total Cost $78.52 $76.83 Total Cost $85.25 $79.62

KANSAS CITY LOS ANGELES

Medium Large Medium Large

Site Work $11.93 $11.41 Site Work $11.72 $9.84

Base Bldg Structural & Enclosure $41.19 $37.34 Base Bldg Structural & Enclosure $44.41 $41.70

Base Bldg Architectural $4.72 $5.62 Base Bldg Architectural $10.25 $11.69

Base Bldg MEP $6.54 $5.61 Base Bldg MEP $7.81 $6.50

GC's and GR's & Fee $5.09 $4.12 GC's and GR's & Fee $7.42 $6.20

Contingency $6.68 $6.20 Contingency $7.61 $7.08

Total Cost $76.15 $70.31 Total Cost $89.22 $83.01

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

28 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 LOCAL MARKET DATA

LOUISVILLE MEMPHIS
Medium Large Medium Large

Site Work $15.66 $12.76 Site Work $11.12 $10.54

Base Bldg Structural & Enclosure $34.56 $33.79 Base Bldg Structural & Enclosure $38.61 $35.21

Base Bldg Architectural $4.77 $6.15 Base Bldg Architectural $4.68 $6.17

Base Bldg MEP $8.92 $8.60 Base Bldg MEP $5.22 $4.81

GC's and GR's & Fee $4.78 $3.54 GC's and GR's & Fee $6.30 $5.21

Contingency $6.58 $6.27 Contingency $6.23 $5.86

Total Cost $75.27 $71.10 Total Cost $72.15 $67.81

MIAMI MILWAUKEE
Medium Large Medium Large

Site Work $13.62 $13.02 Site Work $12.26 $11.72

Base Bldg Structural & Enclosure $47.01 $42.62 Base Bldg Structural & Enclosure $42.31 $38.36

Base Bldg Architectural $5.38 $6.42 Base Bldg Architectural $4.84 $5.78

Base Bldg MEP $7.46 $6.40 Base Bldg MEP $6.71 $5.76

GC's and GR's & Fee $5.81 $4.70 GC's and GR's & Fee $5.23 $4.23

Contingency $7.63 $7.08 Contingency $6.87 $6.37

Total Cost $86.91 $80.24 Total Cost $78.22 $72.22

MINNEAPOLIS NASHVILLE
Medium Large Medium Large

Site Work $12.39 $11.84 Site Work $11.46 $10.87

Base Bldg Structural & Enclosure $42.75 $38.76 Base Bldg Structural & Enclosure $39.81 $36.30

Base Bldg Architectural $4.90 $5.84 Base Bldg Architectural $4.82 $6.36

Base Bldg MEP $6.78 $5.82 Base Bldg MEP $5.38 $4.96

GC's and GR's & Fee $5.28 $4.28 GC's and GR's & Fee $6.49 $5.37

Contingency $6.94 $6.44 Contingency $6.43 $6.04

Total Cost $79.04 $72.98 Total Cost $74.38 $69.91

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

CUSHMAN & WAKEFIELD 29

LOCAL MARKET DATA
NEW JERSEY OAKLAND
Medium Large Medium Large

Site Work $17.49 $13.97 Site Work $13.45 $11.42

Base Bldg Structural & Enclosure $37.37 $34.02 Base Bldg Structural & Enclosure $57.21 $54.12

Base Bldg Architectural $6.02 $6.14 Base Bldg Architectural $5.09 $6.33

Base Bldg MEP $7.73 $7.25 Base Bldg MEP $6.90 $5.49

GC's and GR's & Fee $2.97 $1.90 GC's and GR's & Fee $8.95 $7.42

Contingency $6.99 $6.22 Contingency $8.48 $7.85

Total Cost $78.57 $69.49 Total Cost $100.08 $92.64

ORANGE COUNTY PENN CORRIDOR

Medium Large Medium Large

Site Work $11.38 $9.55 Site Work $17.22 $13.67

Base Bldg Structural & Enclosure $43.46 $40.81 Base Bldg Structural & Enclosure $36.79 $33.28

Base Bldg Architectural $9.65 $11.10 Base Bldg Architectural $5.93 $6.00

Base Bldg MEP $7.39 $6.18 Base Bldg MEP $7.61 $7.09

GC's and GR's & Fee $7.27 $6.06 GC's and GR's & Fee $2.93 $1.86

Contingency $7.38 $6.87 Contingency $6.88 $6.09

Total Cost $86.54 $80.57 Total Cost $77.36 $67.99

PHILADELPHIA PHOENIX
Medium Large Medium Large

Site Work $17.49 $13.97 Site Work $17.09 $19.85

Base Bldg Structural & Enclosure $37.37 $34.02 Base Bldg Structural & Enclosure $40.47 $32.31

Base Bldg Architectural $6.02 $6.14 Base Bldg Architectural $18.29 $22.19

Base Bldg MEP $7.73 $7.25 Base Bldg MEP $4.75 $4.46

GC's and GR's & Fee $2.97 $1.90 GC's and GR's & Fee $2.81 $2.62

Contingency $6.99 $6.22 Contingency $8.20 $7.96

Total Cost $78.57 $69.49 Total Cost $91.61 $89.40

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

30 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 LOCAL MARKET DATA

PITTSBURGH PORTLAND
Medium Large Medium Large

Site Work $17.76 $14.50 Site Work $17.49 $15.14

Base Bldg Structural & Enclosure $37.95 $35.32 Base Bldg Structural & Enclosure $56.05 $52.58

Base Bldg Architectural $6.12 $6.37 Base Bldg Architectural $6.14 $8.12

Base Bldg MEP $7.85 $7.53 Base Bldg MEP $6.89 $6.23

GC's and GR's & Fee $3.02 $1.98 GC's and GR's & Fee $9.01 $7.57

Contingency $7.09 $6.46 Contingency $8.92 $8.38

Total Cost $79.79 $72.15 Total Cost $104.51 $98.04

SALT LAKE CITY SAN DIEGO

Medium Large Medium Large

Site Work $17.09 $19.85 Site Work $12.94 $10.92

Base Bldg Structural & Enclosure $40.47 $32.31 Base Bldg Structural & Enclosure $58.66 $54.48

Base Bldg Architectural $18.29 $22.19 Base Bldg Architectural $5.02 $6.28

Base Bldg MEP $4.75 $4.46 Base Bldg MEP $6.50 $5.23

GC's and GR's & Fee $2.81 $2.62 GC's and GR's & Fee $8.99 $7.42

Contingency $8.20 $7.96 Contingency $8.53 $7.81

Total Cost $91.61 $89.40 Total Cost $100.65 $92.14

SEATTLE ST. LOUIS

Medium Large Medium Large

Site Work $13.20 $11.17 Site Work $12.06 $11.53

Base Bldg Structural & Enclosure $57.93 $54.30 Base Bldg Structural & Enclosure $41.63 $37.75

Base Bldg Architectural $5.05 $6.30 Base Bldg Architectural $4.77 $5.68

Base Bldg MEP $6.70 $5.36 Base Bldg MEP $6.61 $5.67

GC's and GR's & Fee $8.97 $7.42 GC's and GR's & Fee $5.15 $4.17

Contingency $8.51 $7.83 Contingency $6.76 $6.27

Total Cost $100.36 $92.39 Total Cost $76.98 $71.07

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

CUSHMAN & WAKEFIELD 31

LOCAL MARKET DATA
CALGARY MONTREAL
Medium Large Medium Large

Site Work $16.79 $18.88 Site Work $14.24 $13.35

Base Bldg Structural & Enclosure $47.80 $43.13 Base Bldg Structural & Enclosure $41.95 $39.09

Base Bldg Architectural $6.08 $6.66 Base Bldg Architectural $8.24 $9.28

Base Bldg MEP $15.19 $15.19 Base Bldg MEP $7.97 $8.34

GC's and GR's & Fee $6.18 $5.39 GC's and GR's & Fee $16.45 $15.10

Contingency $8.85 $8.58 Contingency $7.85 $7.50

Total Cost $100.88 $97.84 Total Cost $96.69 $92.67

TORONTO VANCOUVER
Medium Large Medium Large

Site Work $15.72 $14.54 Site Work $14.21 $12.92

Base Bldg Structural & Enclosure $42.20 $37.20 Base Bldg Structural & Enclosure $41.18 $40.01

Base Bldg Architectural $5.31 $6.02 Base Bldg Architectural $8.20 $9.24

Base Bldg MEP $6.31 $5.54 Base Bldg MEP $7.97 $8.34

GC's and GR's & Fee $3.72 $2.94 GC's and GR's & Fee $13.54 $13.13

Contingency $7.15 $6.49 Contingency $7.47 $7.35

Total Cost $80.41 $72.74 Total Cost $92.58 $90.99

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

32 NORTH AMERICA INDUSTRIAL CONSTRUCTION COST GUIDE 2023

 LOCAL MARKET DATA

GUADALAJARA MEXICO CITY

Medium Large Medium Large

Site Work $7.48 $7.48 Site Work $7.48 $7.48

Base Bldg Structural & Enclosure $27.85 $27.85 Base Bldg Structural & Enclosure $27.85 $27.85

Base Bldg Architectural $7.30 $6.97 Base Bldg Architectural $7.30 $6.97

Base Bldg MEP $11.76 $11.76 Base Bldg MEP $11.76 $11.76

GC's and GR's & Fee $14.15 $14.15 GC's and GR's & Fee $14.15 $14.15

Contingency $5.52 $5.48 Contingency $5.52 $5.48

Total Cost $74.06 $73.69 Total Cost $74.06 $73.69

MONTERREY
Medium Large

Site Work $7.78 $13.55

Base Bldg Structural & Enclosure $28.96 $35.86

Base Bldg Architectural $7.59 $6.52

Base Bldg MEP $12.23 $9.13

GC's and GR's & Fee $14.71 $3.75

Contingency $5.74 $6.65

Total Cost $77.02 $75.46

NOTES:
1. Medium (476,400 RSF)
2. Large (901,000 RSF)
3. All costs in USD; conversions made using 2022 rates

CUSHMAN & WAKEFIELD 33

CONTACTS

AUTHORS
BRIAN UNGLES
Project & Development Services
Americas Leader
[email protected]

DAVID SMITH SANDY ROMERO

Head of Occupier Insights Research Manager
Global Research Global Research
[email protected] [email protected]

REGIONAL PDS LEADS

BRIAN JAFFE TOM FIORETTI
Western Region, Mexico + Latin America Lead Central Region + Canada Lead
Project & Development Services Project & Development Services
[email protected] [email protected]

RICHARD JANTZ ADRIAN CONFORTI

Tri-State Region Lead Northeast Region Lead
Project & Development Services Project & Development Services
[email protected] [email protected]

ASIA PACIFIC EMEA

Tom Gibson Andrew Carmichael Nic Wilkinson
Head of PDS, Asia Pacific Client Services, Asia Pacific [email protected]
[email protected] [email protected]

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers
exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest
real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries.
In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project
management, leasing, capital markets, valuation and other services.

To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.