We surveyed 14 general contractors in as many Central Business Districts (CBDs) 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:
- Construction costs continue to level out, but uncertainty remains.
- Pandemic-fueled commodity price increases have abated, but strong demand continues to apply pricing pressure.
- Labor constraints are applying upward pressure on costs.
- Project timelines continue to be impacted by extended equipment lead times and labor constraints.
- Robust retail growth has resulted in positive absorption since 2021 and decreasing vacancy rates in most U.S. markets.
- Inventory is increasingly constrained, as the construction pipeline remains subdued.
- Retail developers have been hindered by rising costs, making it difficult to meet the increasing demand for retail space.
- In-line store fit out costs average $147 per square foot (psf) nationally.
- Fit outs are costliest in Northern California, averaging $216 psf, and most cost-effective in the Midwest, averaging $106 psf.
