I have been up to my eyeballs in construction issues lately, so I wanted to share some trends I am seeing:
- Construction costs continue to escalate sharply. Workers and materials continue to demand a premium which is driving costs upwards. Traffic, demand and logistics headaches have caused top interior contractors to charge extra for jobs in Brickell or Downtown. This affects not only rental rates, but also lease terms because landlords need more time to recoup those expenses.
- Because the construction industry is so busy, everything is taking longer. Architects and engineers are so busy that it takes longer to get plans. The various building departments are busy so processing takes a bit longer. Add in the contractors who are stretched thin, and delays are inevitable. If you are thinking about moving, you need to give yourself plenty of time.
- Due to the two factors above, more and more landlords are proactively building “spec” spaces. These are smaller (1,400 to 3,000 SF) offices that incorporate a basic design with neutral finishes. I am a huge fan of spec suites because you can tweak them a little if necessary, but usually they are so well-designed that a tenant can move in immediately. The landlord is able to gain economies of scale by constructing several suites at one time and oftentimes these suites begin to lease up before they are completed.
If you are thinking about moving, contact me so we can plan a timeline and solution for your specific situation.