Kirksey Construction Cost Update-2013
Kirksey Architects released its 2013 annual construction cost update on office buildings and parking structures which is an annual poll of leading contractors to update current market conditions. This year the report has been expanded to include corporate interior construction costs.
Construction costs began to climb in 2012 and costs are expected to continue rising at a steady pace through 2013. A combination of a higher volume of projects in a number of sectors combined with labor and material cost increases will continue to drive up construction costs
Twenty one office projects, totaling 4.5 million square feet, are under construction in Houston as the city’s robust economy continues to propel the Houston office space market and this doesn’t include ExxonMobil’s massive new campus just south of the Woodlands.
Energy related companies are driving the uptick in major office projects and major interior lease deals in the Houston region. Many speculative office projects are in the wings awaiting a tenant and financing while new projects are being announced on a regular basis. LEED certification continues to be a standard for most office buildings. However, the current LEED standards favor dense urban locations, resulting in many suburban buildings settling for a level lower than similar projects built in 2007-2008.