HOUSTON—Office construction costs in the Houston market increased considerably, in the last year, according to a report from a local firm Kirksey Architecture.
The cost for construction of low-rise office buildings currently ranges from $84 to $94 per square feet.
The same type of building was coming in at $74 to $84 at the midpoint 2014. This according to the firm’s 2014 Construction Cost Update.
Costs have been steadily increasing since 2012, but they they jumped significantly over the last year the rport says. High demand, labor shortages, concrete shortages, and long lead times for critical components are among the factors leading to the acceleration, Kirksey says.
Currently, it cost between $105 and $142 per square foot to build a high-rise office building compared to the 2013 costs of $98 to $135 per square foot. These prices are for an office building seven to 25-stories with a 25,000-square-foot shell.
Building a standard office space interior currently costs $38 to $46 per square foot, compared to last year’s range of $36 to $42 per square foot. Prices increased even more for upgraded spaces such as executive office spaces, the report said.