We surveyed general contractors in 15 markets to provide cost estimates for an in-line store fit out. The guide also examines current construction trends that impact costs and retail market fundamentals.
Highlights include:
- Recent tariff policy announcements have already resulted in increased pricing as contractors prepare for higher costs.
- Rising commodity prices and labor costs are applying upward pressure to overall construction costs. However, price increases are expected to be slower relative to the sharp rise seen in 2022.
- Project timelines have stabilized, indicating that general contractors (GCs) have become adept at managing extended schedules.
- Based on C&W’s General Contractor Sentiment Survey, GCs expect to navigate higher costs for both materials and labor in 2025.
- Softening economic activity has resulted in slower retail leasing and negative absorption.
- The retail construction pipeline remains constrained; therefore, the recent uptick in the vacancy rate will not change the market balance in the near term.
- In-line store fit out costs average $155 per square foot (psf) nationally, up 4% year-over-year (YOY). Fit outs are costliest in Northern California, averaging $211 psf, and most cost- effective in the Southeast, averaging $117 psf.
