#4 Occupancy & Construction Costs

Construction Image

OCCUPANCY & CONSTRUCTION COSTS ON THE RISE

[2015 Top Site Selection Factors Ranking: #2]

Occupancy & construction is one of the biggest up-front costs for any expansion or relocation project. These costs can also vary significantly from city to city, or region to region. High-end construction costs can play a pivotal site selection role, whether in terms of higher acquisition or lease rate premiums, or higher expenses associated with custom fit-outs and future expansions.

Labor costs and material costs are the key drivers that control construction costs, followed by contractor overhead costs. Labor costs are affected by higher-than-market union wage scales; more restrictive contract work rules can further increase overall construction costs. Georgia has been a right-to-work state since 1947 with a manufacturing rate the 5th lowest in the country.

RSMeans is the industry source for accurate and expert information on labor and construction costs. The RSMeans national average is 100 and the latest score for the Milledgeville & Baldwin County area is 83.0.

 

Back to Top 10 Location Factors List