Construction Cost

Piramal Pharma Solutions broke ground in February of 2022 on a £45 million antibody drug conjugate (ADC) facility in Grangemouth, Scotland. Accommodating both manufacturing and aseptic fill/finish operations, the structure will provide additional capacity for the creation of targeted cancer treatments and other innovative therapies. Representing an expansion of Piramal's existing ADC campus, the project is being delivered by Merit using its FlexiPOD V4.0 platform.

While creating generic/flexible lab spaces that can be adapted to a variety of different research needs continues to be the preferred approach—especially in higher education buildings—there is also a growing need for highly specialized lab and support facilities designed for very specific types of research. As a result, facility designers are increasingly tasked with balancing the demand for both open generic/flexible labs and specialized lab spaces in a single building with the added challenge of improving energy efficiency, sustainability, and operating costs.

Pandemic-induced supply chain issues, increased commodity demand, and regional labor shortages are expected to drive annual construction cost escalation for large capital projects to record highs over the near- to mid-term future. While the compounded escalation rate for non-residential construction costs have trended around 3.5 percent annually for the past 30-plus years, many regions are expected to see double that escalation rate (or more) through at least 2023, according to current market forecasts.

Autolus Therapeutics broke ground in November of 2021 on a £66 million cell manufacturing facility in Stevenage in the United Kingdom. Accommodating the production of chimeric antigen receptor T-cells for the treatment of cancer, the 80,730-sf project is being built by Merit using modular offsite construction methodology to significantly accelerate the construction timeline and reduce carbon emissions.

Vermeulens has released its market outlook report for the third quarter of 2021. Key points include:

The University of Kansas (KU) faced a daunting challenge: more than 11 million sf of facilities in 150 buildings whose average age was 45 years and a deferred maintenance backlog exceeding $350 million. At the same time, the university’s strategic plan set a goal of increasing research and discovery, and the resulting campus master plan prioritized the need for new research facilities. Realizing that goal while addressing the existing challenges could have taken decades using traditional funding models. The solution? The Integrated Science Building, KU’s $180 million large-scale public-private partnership (P3) for interdisciplinary campus development, which is breaking new ground in funding models, integration, management structure, and fundraising activities. With this initiative, the university took a “great leap forward” in academic and research programs, design decisions, space allocations, programming, and critical infrastructure upgrades, as well as making a bold step with the project delivery.

Vermeulens has released its market outlook report for the second quarter of 2021. Key points include:

Demand for design services from U.S. architecture firms continues to grow at a vigorous pace, according to a report issued by the American Institute of Architects in June of 2021. AIA’s Architecture Billings Index score for May rose to 58.5 compared to 57.9 in April. Any score above 50 indicates an increase in billings, and May’s ABI score is one of the highest in the index’s 25-year history.

Caltech is planning to break ground in April of 2022 on the $100 million Resnick Sustainability Resource Center in Pasadena. Designed by the Yazdani Studio of CannonDesign, the 80,000-sf interdisciplinary facility will provide sophisticated laboratory environments for research programs in climate science, ecology, biosphere engineering, energy, biofuels, decomposable plastics, solar science, and water and environmental resources.

Johnson Controls International (JCI) launched OpenBlue Buildings as a Service in April of 2021. Offering a comprehensive portfolio of advanced solutions, the program allows building owners to transfer the full lifecycle risk of operations to Johnson Controls, which can include upfront capital and decision-making processes; responsibility for design, construction, and maintenance; and energy efficiency and emissions management.

Vermeulens has released its market outlook report for the first quarter of 2021. Key points include:

Vermeulens has released its market outlook report for the fourth quarter of 2020. Key points include:

Construction Prices: Remain flat through Q4 of 2020, with one in ten projects showing cost reductions with strong contractor coverage across the board.

Fed Watch: The Federal Reserve continued monetary stimulus.

Architectural Billings: Q4 has returned to growth in inquiries; however, three quarters of billing declines in 2020 will result in a lower volume for the first half of 2021.

Efforts to make mass timber construction a viable alternative to concrete and steel took a giant step forward last year when Walmart announced that the 2.4 million sf of office buildings on its new Bentonville, Ark., headquarters campus would use a structural system of cross-laminated timber manufactured from regionally harvested southern yellow pine. It’s not just in the office environment where wood is becoming a contender. “We see increasing interest in using mass timber structures for research/lab buildings, especially at universities that are in major timber-producing regions,” says John Starr, a principal at Lord Aeck Sargent, a Katerra Company (LAS). Starr cited facilities at Georgia Tech, Oregon State, and Michigan State as examples.

The University of Nevada, Las Vegas broke ground on the Medical Education Building in late October of 2020. Designed by TSK and CO Architects, the five-story, 135,000-gsf facility will be the first permanent structure for the School of Medicine. Funded by $155 million in philanthropic contributions, the project is being developed by Nevada Health and Bioscience Corporation through a public-private partnership.

Washington State University opened the $66 million Plant Sciences Building in Pullman in November of 2020. Designed by LMN Architects with Research Facilities Design (RFD) as laboratory design consultant, the 82,476-sf facility provides leading-edge research environments for programs in horticulture, plant biochemistry and pathology, and crop and soil science. Creating a new gateway to the V.