How Can We Help You?

Forecasting & Analytics

Driven by economists and leveraged by market makers.
CRE performance across major metros and asset classes. History and forecast by CBRE.

Thought leaders abound

Depth, breadth and rigor concentrated at all levels.
Synthesizing macro factors and leading indicators into actionable national, sector and market research.

Advantage is CBRE

Perspectives, scale and connections that work.
Commercial and cultural insight aligned with intellectual capital and experience to fuel informed real estate decision-making.

Which data are right for you?

Data views and extracts by scenario and on demand.
Check out the fundamentals, capital markets, and data tools now on our one-pager.

Experience the platform

See first hand why top investors, developers and financial institutions are clients.
Set a time that works for you.

Leverage CBRE's 
Live, Work, Play Index.

TRY IT NOW

Econometric Advisors' blog

Construction costs: It's the materials

Sep 1, 2017, 12:45 PM by Tim Savage

What does it cost to build a prototypical structure? For the sake of argument, I nominate a parking deck in Cincinnati. Using just such a structure, CBRE Assessment and Consulting Services has pulled together an enlightening case study that clearly presents the site specifications and a breakdown of costs. To my eyes, it's nothing out of the ordinary.

Have a look at the labor components of the cost distribution. "Site Work" (14%) is basically the labor cost of the subcontractors. The "GC Fee" (3%) is an upper bound on the labor costs for the general contractor. And there may be some ancillary wages included under "General Conditions." Together, these make up less than one-fifth of the total cost of construction. Four-fifths of the total cost comes from materials—the largest component of which, the study shows, is concrete.

CBRE A&CS - Construction Costs Case Study - Aug 2017

Source: CBRE Assessment and Consulting Services, 2017.

When labor accounts for such a small share of construction costs, does it make economic sense to consider technological labor-saving innovations, such as automation? Meanwhile, what drives the cost of concrete (by far, the single largest cost item)?

All good things to ponder.

 

Ready to Get Started?

60 second demos.


WATCH NOW

Experience the platform.


TRY IT TODAY

Become a client.


NEXT STEPS

Global Research Tools

redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin play-btn line-arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard