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1、AUGUST 2023United States Construction Market TrendsQ2 20232Confidential&Proprietary|2023 CBRE,Inc.10Contents1Introduction2Material3Supply Chain4Labor5Construction Market Activity6Construction Escalation7Thoughts and Analysis0308Confidential&Proprietary|2023 CBRE,Inc.10INTRODUCTIONExecutiv
2、e SummaryThe Current Situation According to the US Bureau of Labor and Statistics,the construction industry labor force increased by 2%in Q1 2023 while construction unemployment remains very low at 3.5%.As provided by the St.Louis FRED,the construction employment cost index is now up 5.8%from this t
3、ime last year and had an increase of 1.8%compared to last quarter.Historically,this index has increased approximately 3.5%year-over-year since 2017.Finding skilled labor continues to remain a major challenge for all aspects of the industry inclusive of shipping and trucking,manufacturing and on-site
4、 construction.Supply Chain and Material Availability Gasoline and petroleum costs are now much lower than their all-time highs last summer but are still significantly higher than pre-pandemic values.The general freight trucking index from the Bureau of Labor Statistics has declined or remained flat
5、for the past year and is down almost 5%during that time.Availability has improved for many construction materials,while mechanical and electrical equipment continue to maintain extended lead times.Despite increased steel orders of 20%over the past quarter,wide flange beams,metal decking and bar jois
6、ts have actually become easier to obtain.This is the largest increase in orders since Q1 2021.5Confidential&Proprietary|2023 CBRE,Inc.10INTRODUCTIONExecutive SummaryContractor Confidence&Construction Volume Contractor confidence remains somewhat mixed in the industry but seems to be on the upswing a
7、s confirmed by most of the publications monitored and surveyed by the Market Trends Team.According to the St.Louis FRED,commercial construction spending declined 3%in Q1 2023 after an increase of 10%the previous quarter.All construction spending,inclusive of commercial,was flat for two consecutive q
8、uarters before increasing by 3%in Q1 2023.Contractor backlog continues to remain very strong at+8.9 months nationally as reported by Associated Builders and Contractors(ABC)in June.Cost Escalation The Consumer Price Index(CPI)rate fell to 4.1%in May,continuing down from its 40-year high of 9.1%in Ju
9、ne 2022.By comparison,the 40-year historical US average is 3.8%.The Federal Open Market Committee(FOMC)continues raising interest rates as necessary in an effort to return inflation to the targeted 2%range.The CBRE Construction Cost Index showed a decline in annual escalation from 2022 and is foreca
10、st at 6.3%(2%)for the year.This is still projected above the 10-year average of 3-5%per year.6Confidential&Proprietary|2023 CBRE,Inc.10INTRODUCTIONRussia Invades UkraineChinas“Zero COVID”LockdownsResidential Building Boom BeginsFrom May 2020 to June 2022,residential construction spending increases 5
11、5.4%.This drives up costs for both lumber and labor.Key US Ports JammedUS Lowers Key TariffsIn response to skyrocketing costs,the US removes steep tariffs on EU aluminum&steel(late 2021)and Canadian softwood(early 2022).Inflation&Escalation ContinueMarket projections indicate continued“higher than n
12、ormal”labor and material cost escalations for the foreseeable future.Extreme WeatherEconomists Predict Potential Recession in 2023Despite steadily increasing interest rates,the US economy has remained surprisingly resilient.That being said,economists believe there may be recessionary impacts at some
13、 point in 2023.2020202120222023Inflation Rates ReboundChina struggles to meet manufacturing demand,putting additional strain on the US construction industry.Labor shortages cause backups at two key California ports,which handle 40%of US importsInvasion drives up fuel costs worldwide and impacts the
14、chipmaking industry(reliant on Ukrainian neon and Russian palladium);aluminum markets also impacted.Major storms in Texas and Florida have affected manufacturing,production,oil refining and supply chain.The USBLS Consumer Price Index dropped to 4.1%in May 2023,which is the lowest it has been in more
15、 than two years.A Timeline of Recent ImpactsDiscovery,Shut-Downs,Recovery,and BeyondThe last 36 months have represented an unprecedented time for the construction market.7Confidential&Proprietary|2023 CBRE,Inc.10INTRODUCTIONCBRE ConstructionTrends MethodologyThe data collected and used in this repor
16、t primarily incorporates industry information and quarterly publications ending Q1 2023.Where current updated data is available,those Items have also been included here.IdentifyAnalyzeReactAdapt Collect and assembledata from leadingindustry sources andattempt to accuratelyforecast future markettrend
17、s.Find opportunitiesfor vendor partnersto work with projectteams to help mitigaterisk.Determine the root causes of material and labor cost changes,aswell as supplydisruptions throughdata trends.Break down compileddata into usablesegments in order tocreate an effectiveplan.Predict future issuesrelate
18、d to cost andmarket availability.Maintain constantcommunication withClients and keepdecision makersupdated of changesto the market Make consciousdecisions to allow foroptimal solutions Award projects asquickly afterproposals arereceived as possible Allow for material substitutions whereapplicable,ap
19、propriate andadvisable Find opportunities forvendor partners to workwith project teams tohelp mitigate risk Plan projectsaccordingly withaccurate cost escalationsIdentify,Analyze,React and Adapt to Market Issues9Confidential&Proprietary|2023 CBRE,Inc.10MATERIAL IMPACTSMaterial ImpactsProducer Price
20、Indices Rise SlightlyThe PPI for Building Materials and Supplies Dealers continue to stabilize with a slight increase of 5.0%over the last quarter after a year of continuous decline.Construction Material Costs Remain Flat According to the St.Louis FRED,construction material costs are now lower year-
21、over-year for the first time in more than three years.In general,construction materials costs are showing lower costs than this time last year.Previous indicators have confirmed this recent softening in material costs.Commodities Costs Show Signs of Stabilization The biggest quarterly movers for com
22、modities costs are asphalt roofing,steel and paint products.Conversely,electric generator and transmission products declined 5%quarterly.Steel products have seen a quarterly increase of 6%after more than 6 months of continuous declines.Overall,commodities costs are expected to show fewer fluctuation
23、s compared with early-2022 in the coming quarters.Some Construction Material Costs on the Decline10Confidential&Proprietary|2023 CBRE,Inc.10MATERIAL IMPACTSProducer Price Index:Building Materials DealersPrices charged by producers as they exit through factory gates had a 5%quarterly increase in Q1 2
24、023 after a year of consecutive quarterly decreases.Source:PPI industry data for Building Materials and Supplies Dealers|US Bureau of Labor Statistics,CBRE Cost Consultancy Note:Line graph reflects trends|Bar graph reflects quarterly increase/decrease changesBUILDING MATERIALS AND SUPPLIES DEALERS P
25、PIIndex increasing first time in a year12%27%-19%-2%30%-10%-11%-3%5%05021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Quarterly(%)Index11Confidential&Proprietary|2023 CBRE,Inc.10PPI FOR INPUTS TO NONRESIDENTIAL CONSTRUCTIONMATERIAL IMPACTSConstruction Material CostsEngineering News-R
26、ecord(ENR)publishes monthly 20-city averages for cost indices,wages,and material prices.The materials cost index average has remained flat year-over-year since 2021.Month-over-month changes have continuously fallen since Q2 2022 but have now stabilized near 0.0%.Previously strained manufacturing con
27、ditions,material supply reductions,and lead time issues have eased as construction material cost increases stabilize.The Producer Price Index(PPI)for net inputs to construction industries and goods is now lower than last year by-3.7%and relatively flat month-to-month at-0.6%.Previous early indicator
28、s have confirmed a recent softening in material costs.Construction Material Costs Flat Year Over Year,and Quarter Over QuarterSources:ENR Materials Cost Index|ENR,Producer Price Index by Commodity:Net Inputs to Construction Industries,Goods I St.Louis FRED,CBRE Cost ConsultancyENR MATERIALS COST IND
29、EX(YTD)-10.0%0.0%10.0%20.0%30.0%40.0%2022Q12022Q22022Q32022Q42023Q12023Q2Month to MonthYear to Year-10.0%0.0%10.0%20.0%30.0%2022Q12022Q22022Q32022Q42023Q12023Q2Month to MonthYear to Year12Confidential&Proprietary|2023 CBRE,Inc.10MATERIAL IMPACTSMajor Commodities CostsAfter a continued drop in 2022,l
30、umber costs remained unchanged in Q1 2023 compared to the previous quarter.Iron and steel costs increased by 6%in Q1 2023,after a continued decline the previous quarter.Concrete costs continue to show a steady increase.Copper and copper product costs are still volatile,but they showed a consecutive
31、increase of 5%over the past quarter.Source:Lumber and Wood,Iron and Steel,Cement Concrete,Copper and Copper Products Producer Price Index by Commodity,Index 1982=100|St.Louis FRED,CBRE Cost Consultancy Note:Line graph reflects trendsMAJOR CONSTRUCTION COMMODITIES PPICommodities Cost Index Picks Up o
32、n Upward Trends05402021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Lumber and WoodIron and SteelCement ConcreteCopper13Confidential&Proprietary|2023 CBRE,Inc.10MATERIAL IMPACTSProduct Cost ChangesThis quarter,the top three(3)products that have seen significant cost changes are as fo
33、llows:Asphalt roofing and cap sheets:+12%Steel mill products:+10%Iron and Steel:+6%Other construction products facing noteworthy cost changes this quarter include:Paint materials:+5%Electric Power Generation:-5%Source:US Bureau of Labor Statistics,CBRE Cost ConsultancyTOP 5 QUARTERLY(%)COST MOVERSIr
34、on and Steel Products Represent the Top Quarterly Movers12%10%6%5%-5%21%-19%-17%11%-19%Asphalt mineral-surfaced roll roofing and cap sheetsSteel mill productsIron and steelPaint materialsElectric Power Generation,Transmission,and DistributionAnnual(%)Quarterly(%)14Confidential&Proprietary|2023 CBRE,
35、Inc.10MATERIAL IMPACTSMajor Commodity Cost Fluctuations Most commodities have shown a minute quarterly change in cost.In general,commodities costs are downcompared with last year.Source:US Bureau of Labor Statistics,CBRE Cost Consultancy Note:Annual changes are measured month to monthDIVISIONAL COMM
36、ODITY CHANGES(%)The Majority of Major Commodities Costs Continue to Show Subtle ChangesDIVISIONAL COMMODITY PRICE MOVEMENT2021 Mar2021 Jun2021 Sep2021 Dec2022 Mar2022 Jun2022 Sep2022 Dec2023 MarMetalsSteel Mill ProductsQuarterly(%)35.09%28.90%21.86%7.47%-16.26%11.57%-14.90%-11.73%0.74%Annual(%)41.18
37、%89.20%135.49%128.05%41.36%22.36%-14.55%-29.81%-15.57%Iron and SteelQuarterly(%)26.66%21.46%14.30%6.80%-8.22%3.69%-14.37%-8.61%6.03%Annual(%)38.75%74.40%97.69%87.80%36.08%16.18%-12.96%-25.52%-13.96%Woods,Plastics,&CompositesSoftwood Veneer and PlywoodQuarterly(%)40.08%56.97%-57.04%16.85%55.70%-18.22
38、%-13.68%-13.01%-4.77%Annual(%)99.83%198.15%-16.55%10.37%22.67%-36.08%28.44%-4.39%-41.52%PlywoodQuarterly(%)28.22%44.26%-44.57%11.40%36.50%-12.70%-7.91%-8.20%-3.76%Annual(%)59.83%123.68%-6.13%14.22%21.59%-26.42%22.25%0.74%-28.97%Thermal&MoistureThermoplastic Resins&Plastics MaterialsQuarterly(%)21.65
39、%14.64%4.85%-4.59%-3.69%7.25%-7.09%-10.11%1.98%Annual(%)28.76%61.96%58.84%39.51%10.45%3.33%-8.44%-13.73%-8.66%Aluminum Sheet,Plate,and FoilQuarterly(%)5.69%13.22%7.15%-1.21%11.83%-7.42%-9.98%-2.46%0.35%Annual(%)5.51%33.44%32.83%26.66%34.02%9.59%-7.93%-9.09%-18.43%FinishesFloor CoveringsQuarterly(%)0
40、.66%1.91%1.93%1.66%-0.92%-1.02%2.30%-0.15%0.52%Annual(%)0.40%2.94%5.03%6.29%4.62%1.62%1.99%0.18%1.63%Gypsum Building MaterialsQuarterly(%)5.95%10.53%2.74%2.24%5.39%7.47%3.86%-0.10%1.86%Annual(%)7.08%20.80%25.69%23.01%22.36%18.97%20.27%17.52%13.58%HVAC&MechanicalCopper&Copper Alloy Sheet,Strip&PlateQ
41、uarterly(%)8.18%6.19%0.39%-0.17%13.61%-3.74%-9.90%5.93%5.05%Annual(%)36.30%42.46%25.66%15.13%20.91%9.59%-1.64%4.36%-3.50%16Confidential&Proprietary|2023 CBRE,Inc.10SUPPLY CHAIN IMPACTSMaterial Lead Times Ease as Bottlenecks Break Loose Lead times lessened for most trades over the past quarter,butmec
42、hanical and electrical equipment remain a challenge toprocure.Wide flange steel,metal decking and bar joists have all becomeeasier to obtain despite steel orders up 20%since last quarter.This is the largest increase in orders since Q1 2021.Most Petroleum Costs Continue Decline In Cost While regular
43、gasoline costs are up slightly over the pastquarter(+4.4%),both crude oil and diesel are down(7.1%and7.9%respectively)over the same time.Freight Index Continues Its Decline The General Freight Trucking Index has now fallen everyquarter since Q2 2022 showing a cooling in shipping andfreight costs.Shi
44、pping and trucking costs remain higher than pre-pandemic,but the current trend shows a potential return tothose levels over the next year.Supply Chain DisruptionsLead Time Challenges Ease as Manufacturing and Supply Chain Catch Up with Demand17Confidential&Proprietary|2023 CBRE,Inc.10SUPPLY CHAIN IM
45、PACTSGasoline&Crude Oil CostsIncreased fuel costs have contributed to already strained supply chains and elevated material costs nationwide.While the average regular gasoline cost declined$1.30/gallon from this time last year,it increased 4.4%(+$0.15/gallon)since last quarter.Crude oil costs have fl
46、uctuated wildly over the last year but are now down to$68.03/barrel.This is a 7.1%decrease(-$5.17/barrel)from the previous quarter,and a 39.1%decrease(-$45.73/barrel)from this time last year.Crude oil is a key component in many construction materials,including asphalt and plastics.Diesel fuel is now
47、 down to$3.80/gallon.This is a 7.9%decrease(-$0.33/gallon)from the previous quarter,and a 34.3%decrease(-$1.98/gallon)from this time last year.Diesel remains the primary fuel for transporting materials nationwide.Sources:US Energy Information Administration,Business Insider,CBRE Cost ConsultancyUS R
48、EGULAR RETAIL GASOLINE PRICE COMPARISON($/GALLON)Gasoline Up Slightly Since Last Quarter,While Diesel and Crude Oil Continue to Drop+$0.15/GallonReported 6/28/2023Increase in the US National Yearly Average for a gallon of regular gasoline$68.03/GallonReported 6/28/2023Cost of US WTI Crude Oil;-$43.7
49、3/barrel(-39.1%)lower than this time last year$3.80/GallonReported 6/28/2023Cost of US No.2 Diesel;-$1.98/gallon(-34.3%)lower than this time last year$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00$5.50Jan.Feb.Mar.Apr.MayJuneJulyAug.Sep.Oct.Nov.Dec.2020202120222023$5.01$3.5718Confidential&Proprietary|2023
50、CBRE,Inc.10SUPPLY CHAIN IMPACTSOngoing Supply and Logistics IssuesShutdowns in Manufacturing HubsRise in Energy CostsIncreased Construction Project VolumeSkilled Labor Force ScarcityContinued Surge in InflationSupply Chain ImpactsRebar,CMU Block and Gypsum Drywall All See an Uptick in Lead TimesSupp
51、ly chain uncertainty continues throughout the industry.Product availability will continue to face challenges in production and delivery.The lead times shown here are the delta from the previous quarter.Key Factors Currently Impacting Material Availability+2 weeksRebarIncreased volume for infrastruct
52、ure projects has led to increased demand for concrete and rebar.Lead times for rebar have increased to 6 to 8 weeks from release.+2 weeksCMU BlockCement and concrete are the primary components of CMU masonry block which have become strained with increased large scale infrastructure projects.Limited
53、US manufacturers and added demand have both contributed to the added lead times.+1 weekGypsum DrywallLimited office and commercial construction volume in early-2023 saw reduced orders for gypsum drywall.As inflation and escalation begin to come under control,demand for drywall is once again increasi
54、ng.19Confidential&Proprietary|2023 CBRE,Inc.10SUPPLY CHAIN IMPACTSSupply Chain ImpactsSupply chain uncertainty continues throughout the industry.Product availability will continue to face challenges in production and delivery.The lead times shown here are the delta from the previous quarter.Metal De
55、cking&Bar Joists,Roofing Membranes and Wood Doors All Show Signs of Relief for Procurement-8 weeksMetal Decking/JoistsDespite a substantial uptick in orders over the past quarter,lead times have eased for metal decking and steel bar joists as manufacturing has caught-up with US project orders.-4 wee
56、ksRoof MembranesAs supply chain woes have eased,both US-manufactured and imported roofing membrane materials are catching up with previous demand.Several large industrial and logistics projects have also been pushed back,freeing up material supplies for roofing projects.-2 weeksWood DoorsSimilar to
57、roof membranes,imports and domestic supply of wood doors have been able to match demand for current projects reducing overall lead times.2010SUPPLY CHAIN IMPACTSSource:Aggregated Multiple General Contractors Reports,CBRE Cost ConsultancyLEAD TIME CHANGESLead Time ProjectionsHVAC Equipment Lead Times
58、 Still Longer Than Normal,But See Relief;Electrical Equipment Availability Remains ChallengedThe supply chain remains in a fragile state,with extremely long lead times for certain items.While some materials have become more readily available,this is not the overall trend.The logistics industry remai
59、ns strained,with a lack of skilled drivers,increased costs of trucking materials,continued congestion at American ports,and political tensions increasing overseas.The availability of materials may vary regionally,project by project,and case by case.However,these are some of the key items that are cu
60、rrently experiencing availability issues.These are not the only items that markets are experiencing issues with,but they are some of the most notable at the moment.It is important to note that the lead times for these items can vary significantly,depending on the contractor and the specific location
61、.The CBRE Market Trends Team has attempted to represent these differences with lead time ranges.Confidential&Proprietary|2023 CBRE,Inc.Trade Item/MaterialCurrent Lead TimeChange from Prev.QuarterDelta to Prev.QuarterConcrete2-3 weeks-1 weeks-33%Rebar6-8 weeks+2 weeks+33%CMU Block4-6 weeks+2 weeks+10
62、0%Wide Flange Steel12-16 weeksno change0%Metal Decking8-10 weeks-8 weeks-50%Open Web Steel Joists12-16 weeks-8 weeks-40%Roofing Membranes4-8 weeks-4 weeks-33%Wood Doors12-14 weeks-2 weeks-14%Aluminum Storefront8-12 weeksno change0%Gypsum Drywall2-3 weeks+1 weeks+50%HVAC VAV Boxes8-10 weeksno change0
63、%HVAC AHUs and RTUs24-36 weeksno change0%Electrical Panels24-36 weeksno change0%Transformers20-24 weeks-2 weeks-8%21Confidential&Proprietary|2023 CBRE,Inc.10Lumber ProductsThe lumber export rate increased by 2%in the previous quarter.Additionally,lumber import rates increased by 1%in Q1 2023 after c
64、ontinued declines throughout 2022.Both import and export costs for lumber have stabilized as supply and demand have balanced.Source:Logs&Lumber,Export Price Index(End Use),Index 2000=100|Logs&Lumber,Import Price Index(End Use),Index 2000=100|FRED,CBRE Cost Consultancy Note:Line graph reflects trends
65、|Bar graph reflects quarterly increase/decrease changesLUMBER IMPORTS VS EXPORTS INDEXImports and Exports Continue to Stay SteadySUPPLY CHAIN IMPACTS16%14%4%0%2%-2%-17%-9%2%31%28%-50%35%40%-24%-11%-9%1%-300-3004005006002021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Export QoQ(%)
66、Import QoQ(%)Export Price IndexImport Price Index22Confidential&Proprietary|2023 CBRE,Inc.10Iron and Steel OrdersIron and steel products unfilled orders showed no significant changes in Q1 2023.Conversely,new orders have been trending upward over the past quarter by 20%.Source:Iron&Steel Products,Ex
67、port Price Index(End Use),Index 2020=100|Iron&Steel,Manufacturers New Orders,Unfilled Orders|FRED,CBRE Cost Consultancy Note:Line graph reflects trends|Bar graph reflects quarterly increase/decrease changesIRON AND STEEL NEW ORDERS VS UNFILLED ORDERSTrends Show More New Orders and Minor Changes in U
68、nfilled OrdersSUPPLY CHAIN IMPACTS37%7%4%3%9%0%-5%-9%20%15%14%8%11%7%-2%-4%1%3%$12,831 mil.$15,915 mil.$16,505 mil.$16,170 mil.$23,713 mil.$23,203 mil.2021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1New Order QoQ(%)Unfilled Order QoQ(%)New Orders$mil.Unfilled Orders$mil.23Confidential&Propriet
69、ary|2023 CBRE,Inc.10Freight Trucking CostsThe general freight trucking cost has continued to trend downward since Q2 2022.The index has now decreased by 1%for the past two quarters.Source:General Freight Trucking,General Freight Trucking,2003=100|US Bureau of Labor Statistics,CBRE Cost ConsultancyGE
70、NERAL FREIGHT TRUCKING US INDEXCosts Continue to Level Off After Two Years of Steady IncreasesSUPPLY CHAIN IMPACTS5%4%4%8%11%0%-3%-1%-1%05002021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q125Confidential&Proprietary|2023 CBRE,Inc.10LABOR IMPACTSConstruction Workforce Stays On CourseT
71、he US construction labor force increased by 2%in Q1 2023,while all US industry increased a modest 1%.Construction unemployment remains low at 3.5%and fellbelow the national unemployment rate,now currently 3.7%,for the first time since September 2022.Construction Labor Costs Remain Elevated The const
72、ruction employment cost index is up 5.8%from thistime last year and had an increase of 1.8%compared to lastquarter.Historically,this index has increased approximately3.5%year-over-year since 2017.Construction hourly wages are up 3.4%on the year,and 1.1%since last quarter.It is expected that 2023 con
73、struction laborwill remain higher than normal.Construction LaborUnemployment Rates Remain Low as Wages and Labor Costs Continue to Rise26Confidential&Proprietary|2023 CBRE,Inc.10LABOR IMPACTSIndustry Labor ForceThe entire US industry labor force showed an increase of 1%after remaining level from Q1
74、to Q4 of 2022.The construction industry labor force increased by 2%in Q1 2023,after showing consecutive decreases in the previous two quarters.Source:US Bureau of Labor Statistics,CBRE Cost ConsultancyEMPLOYMENT LEVEL ALL INDUSTRY VS CONSTRUCTION INDUSTRYQuarterly Construction Increases While All US
75、 Industry Remained Flat158 mil.161 mil.11 mil.12 mil.2021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1All IndustryConstruction1%2%2%-1%0%6%-1%-3%2%1%1%1%1%2%0%0%0%1%27Confidential&Proprietary|2023 CBRE,Inc.10LABOR IMPACTSUnemployment RatesData provided by the US Bureau of Labor Statistics shows
76、 that the national unemployment rate continued to trend downward since the beginning of last year,indicating significant recovery from the initial pandemic shutdowns.Both national and construction unemployment have remained relatively flat,and closely tied since April 2022.However,construction unemp
77、loyment crept upward in December and surged in January.This is most likely seasonally related as the USBLS does not adjust these rates for the construction industry.Source:US National and Construction Unemployment Rates|US Bureau of Labor Statistics,CBRE Cost ConsultancyUS NATIONAL VS CONSTRUCTION U
78、NEMPLOYMENT RATESConstruction Unemployment Rates Jump Upward as Winter Marches OnConstruction UnemploymentMay 2023(non-seasonally adjusted)3.5%0%1%2%3%4%5%6%7%June2022July2022Aug.2022Sept.2022Oct.2022Nov.2022Dec.2022Jan.2023Feb.2023Mar.2023April2023May2023Construction UnemploymentNational Unemployme
79、nt28Confidential&Proprietary|2023 CBRE,Inc.10LABOR IMPACTSUS ConstructionUnemployment by StateConstruction unemployment remains relatively low nationwide and has been closely tied with the national rate for several months prior to year end fluctuations.Regionally,Midwest,Mid-Atlantic,and Southeast r
80、emain strong with unemployment rates in the 2-3%range.Unemployment Rate Major Movers Massachusetts(-1.9%),Washington(-1.6%),Oregon(-1.4%),Wyoming(-1.3%),and Rhode Island(-1.1%)showed the largest decreases in quarterly unemployment rates.Arizona(+0.4%),Louisiana(+0.4%),Florida(+0.2%),Missouri(+0.2%),
81、and Georgia(+0.1%)increased the most in their unemployment rates since last quarter.Source:US National and Construction Unemployment Rates|US Bureau of Labor Statistics,CBRE Cost ConsultancyMAY 2023 UNEMPLOYMENT RATES(%)Midwest and New England Workers Stay Busy GeoNames,Microsoft,TomTomPowered by Bi
82、ng2.1%3.7%2.5%3.6%2.8%2.7%3.4%2.7%3.6%3.5%2.6%2.7%3.8%2.6%3.8%2.9%2.9%2.4%2.1%3.4%3.8%3.4%1.9%3.4%2.9%3.2%3.5%2.8%1.9%3.2%2.5%2.7%3.3%3.4%2.7%2.7%4.5%3.9%3.0%5.3%4.1%29Confidential&Proprietary|2023 CBRE,Inc.10LABOR IMPACTSConstruction Employment and Wage RatesBoth construction and private industry e
83、mployment costs rose in Q1 2023.Construction employment wages and salaries continued to rise after a sudden drop in Q4 2022.Hourly wages increased by 1.1%in Q1 2023.Source:Employment Cost Index,Wages and Salaries,Index 2005=100|St.Louis FRED,Note:Line graph reflects trends|Bar graph reflects quarter
84、ly increase/decrease changesNATIONAL VS CONSTRUCTION EMPLOYMENT COST INDEXLabor Costs Continue Trending UpwardsWAGE COST PER HR WORKED FOR CONSTRUCTION WORKERSSource:Employer Cost for Employee Compensation,Cost per Hour Worked|USBLS Note:Line graph reflects trends|Bar graph reflects yearly increase/
85、decrease changes0.8%1.1%0.7%1.2%0.7%1.8%1.0%1.2%1.8%1.2%0.8%1.6%1.3%1.3%1.4%1.2%1.2%1.2%552021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Construction Sector QoQ(%)All Industry QoQ(%)Construction Sector IndexAll Industry Index0.7%1.3%0.3%2.3%0.7%1.9%0.9%-0.5%1.1%$28.48$28
86、.85$28.95$29.61$29.83$30.39$30.67$30.51$30.85 2021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Cost per hr Worked QoQ(%)Cost per hr Worked31Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITYConstruction Contractors Continue to Stay Busy as Backlog Remains StrongA significant
87、backlog of work for general contractors andtrade subcontractors(8.9 months on average nationally)continued for another quarter.Architectural billings and contracts are often an indicator offuture construction activity.Contracts retracted slightly,whilebillings increased from Q4 2022 to Q1 2023.Mixed
88、 Messages Industry Surveys For A Fourth Straight Quarter The American Institute of Architects(AIA),Dodge Data&Analytics and the Associated Builders&Contractors(ABC)allrepresent growth in their latest publications.Conversely,Engineering News Record(ENR)still shows uncertainty in theirlatest survey al
89、beit with a significant increase in confidencefrom the previous quarter.Construction Volume Begins to Slow Commercial construction spend declined 3%after an increaseof 10%the previous quarter.Conversely,all constructionvolume increased 3%over the same period.According to data from the US Census,offi
90、ce and commercialconstruction volume are still up considerably from this time lastyear(15.3%and 20.4%respectively)but are now down(4.5%and 10.3%)on a quarterly basis.Residential constructionvolume is down 9.7%yearly and 20.6%quarterly.Construction ActivityContractor Backlog Still Strong as Industry
91、Confidence Improves32Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:VOLUMEConstruction Market ActivityIn Q1 2023,commercial construction spending showed a 3%decline after an increase of 10%the previous quarter.Total construction spending remained relatively flat for two consec
92、utive quarters before increasing by 3%in Q1 2023.Source:Total Construction Spending(Public and Private),Commercial Spending(Public and Private),Millions of Dollars|St.Louis FRED,CBRE Cost Consultancy Note:Line graph reflects trends|Bar graph reflects quarterly increase/decrease changesCONSTRUCTION S
93、PENDING NATION VS COMMERCIALCommercial Volume Declines2%2%0%3%5%2%0%2%3%5%1%1%10%1%8%6%10%-3%2021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Total Construction Spending QoQ(%)Commercial Construction Spending QoQ(%)$1,600,520 mil.$1,768,168 mil.$1,884,985 mil.$92,259 mil.$104,265 mil.$128,052 m
94、il.Total Construction Spending$Mil.Commercial Construction Spending$mil.33Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:VOLUMEEquipment Rental&Leasing IndexThe Construction Equipment Rental and Leasing Index saw an abrupt increase in Q3 2022 but has since slowed.Q1 2023 showe
95、d no change,reflecting sustained modest demand.Source:Construction Equipment Rental and Leasing Index 2003=100|US Bureau of Labor Statistics,CBRE Cost Consultancy Note:Line graph reflects trends|Bar graph reflects quarterly increase/decrease changesCONSTRUCTION EQUIPMENT RENTAL AND LEASING INDEXCons
96、truction Rental Market Stay Flat1.2%-0.2%0.6%1.1%0.5%2.4%3.9%2.2%0.0%51301352021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1QoQ(%)Index34Confidential&Proprietary|2023 CBRE,Inc.10US RETAIL CONSTRUCTION VOLUMECONSTRUCTION MARKET ACTIVITY:VOLUMEConstruction VolumeYear-to-year Office co
97、nstruction volume has remained positive since Q3 of 2021.However,the most recent quarterly volume was negative with a-4.5%change.Commercial construction volume fell 10.3%since last quarter but is still up 20.4%compared with last year.Residential construction volume is down significantly compared wit
98、h last quarter,as well as last year.According to the US Census Bureau,“Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000.This is 21.7%(14.8%)above the revised April estimate of 1,340,000 and is 5.7%(10.8%)above the May 2022 rate of 1,543,000.”Source:US Non-
99、Seasonally Adjusted Private Construction Volume|US Census,US Department of CommerceUS OFFICE CONSTRUCTION VOLUMEConstruction Volume Slides Across All Sectors Since Last QuarterUS COMMERCIAL CONSTRUCTION VOLUME-0.3%2.4%4.1%7.2%5.4%3.3%13.3%15.3%8.7%7.1%1.0%-9.5%7.3%6.9%4.7%-4.5%2021Q22021Q32021Q42022
100、Q12022Q22022Q32022Q42023Q1Year Over YearQuarter Over Quarter4.5%12.1%21.4%25.4%20.7%24.8%32.9%20.4%16.4%11.2%4.8%-6.7%11.1%16.2%8.7%-10.3%2021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Year Over YearQuarter Over Quarter41.3%27.6%17.3%25.6%26.4%16.2%3.8%-9.7%23.7%15.2%-2.9%-12.6%29.0%8.9%-14.3%-20.6
101、%2021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1Year Over YearQuarter Over Quarter35Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:BACKLOGRegional Construction BacklogAssociated Builders and Contractors(ABC)reported that its Construction Backlog Indicator decreased slightly t
102、o 8.9 months in May,according to an ABC member survey conducted May 20 to June 7.The reading is down 0.1 month from May 2022 and 0.3 months since last quarter.Higher demand for construction and fewer General Contractors and Subcontractors available to build has led to a reduced number of bidders per
103、 project.Source:US National and Construction Unemployment Rates|US Bureau of Labor Statistics,CBRE Cost ConsultancyUS NATIONAL VS CONSTRUCTION UNEMPLOYMENT RATESBacklogs Remain Elevated Nationwide With the South Leading the WayNational average8.9months(-0.3 M)FROM LAST QUARTER5.06.07.08.09.010.011.0
104、12.02021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q12023Q2CentralNortheastSouthWestWest 9.1M(+0.4M)South 10.9M(-0.1M)Northeast 8.0M(-0.8M)Central 7.5M(-0.8M)36Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:PIPELINEConstruction ActivityThe Dodge Data and Analytics Momentum Inde
105、x is a measure of the initial reporting for projects in planning,which in turn lead to construction spending.The AIA Architecture Billings Index is an economic indicator for nonresidential construction activity,with a lead time of approximately 912 months out.A reading above 50 represents growth.Sou
106、rce:Momentum Index,Dodge Data and Analytics|Architecture Billings Index,American Institute of Architects|CBRE Cost ConsultancyIndustry Analysts Expect Continued Growth in the Construction MarketDodge Data&Analytics Momentum181May 2023AIA Architecture Billings Index51/52Billings/Design Contracts May
107、202312022 Q22022 Q32023 Q42023 Q22 Q22022 Q32023 Q42023 Q1BillingContract37Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:PIPELINEPlanned Construction ProjectsThe Dodge Momentum Index showed an overall positive trend over the past year but has since decli
108、ned following a significant increase to 222 in December 2022.The Q1 2023 momentum index decreased by 14%from the previous quarter.Source:Momentum Index|Dodge Data and Analytics,CBRE Cost ConsultancyDODGE MOMENTUM INDEXIndex Continues to Predict Halt in Growth21912022Q12022Q22022Q32022Q420
109、23Q138Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:PIPELINE Rose to 52.3 in the South(up from 47.3)Rose in the Northeast to 48.7(up from 48.4)Increased to 49.6 in the Midwest(from 48.8)And fell in the West to 47.7(previously 50.4)Scores over 50 indicate an increase in firm b
110、illings.Source:AIA Architectural Billing Index|American Institute of Architects,CBRE Cost ConsultancyREGIONAL AIA ABIArchitectural BillingsBillings Hover Around the 50-Mark as Confidence Remains MixedOften seen as the“canary in the coalmine,”architectural billings and contracts have historically bee
111、n viewed as a solid indicator of where the market is heading.The American Institute of Architects latest data,which was current as of June 2023,shows that the Architectural Billing Index(ABI):National average51.048.0 LAST QUARTERWest 47.7(50.4)South 52.3(47.3)Northeast 48.7(48.4)Midwest 49.6(48.8)20
112、.030.040.050.060.070.02021Q32021Q42022Q12022Q22022Q32022Q42023Q12023Q1NortheastSouthMidwestWest39Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:PIPELINEConstruction SpendingThe American Institute of Architects(AIA)Consensus Projected Spending shows previous years spend volume
113、and projected future years spend on recent data.Adjusted projections for the next two years are mixed.Office is anticipated to remain relatively flat through 2024 while Retail&Other Commercial,Hotel,and Industrial construction are expected to grow in 2023 before slowing down in 2024.These projection
114、s are aggregated from several trusted industry publications by AIA.Both Industrial and Hotel construction are expected to make the biggest gains over the next year and half.Source:AIA Consensus Projected Spending|American Institute of Architects,CBRE Cost ConsultancyAIA CONSENSUS PROJECTED SPENDINGM
115、ixed Projections for Varied Project Types;Anticipated Growth This Year With Cooling in 2024-11.1%-7.7%-20.5%-8.3%-5.6%-1.3%-19.9%-3.3%2.6%11.5%-5.4%31.0%-0.5%3.0%9.5%15.1%-0.7%-2.9%5.3%0.4%OfficeRetail&OtherCommercialHotelIndustrial2020202120222023(projected)2024(projected)40Confidential&Proprietary
116、|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVITY:CONTRACTOR CONFIDENCEConstruction Contractor ConfidenceThe ENR Confidence Index measures executive sentiment about the current market and its expected direction over the next 36 months and 1218 months,on a 0100 scale.Ratings above 50.0 indicate a growing
117、 market.The ABC Construction Confidence Index measures contractors outlooks for the coming quarters in three categories:Sales,Profit Margin,and Staffing Levels.Ratings above 50.0 indicate an expectation of growth in the market.Source:Momentum Index,Dodge Data and Analytics|Architecture Billings Inde
118、x,American Institute of Architects|CBRE Cost ConsultancyConfidence Indicators Show Different OutlooksENR Confidence Index44Q1 2023ABC Confidence Index Sales60May 2023444433442022 Q22022 Q32023 Q42023 Q1(ENR Confidence Index Rating above 50 is considered a growing market)(ABC Confidence Index Rating
119、above 50 is considered a growing market)ABC Confidence Index Profit Margin55Q1 2023ABC Confidence Index Staffing62May 2023585559612022 Q22022 Q32023 Q42023 Q22 Q22022 Q32023 Q42023 Q22 Q22022 Q32023 Q42023 Q141Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION MARKET ACTIVIT
120、Y:CONTRACTOR CONFIDENCEContractor ConfidenceThe ENR Construction Confidence Index increased last quarter to 44 points from 33 the previous quarter.A rating above 50 reflects higher confidence within general contractors.Source:ENR Construction Confidence Index|ENR,CBRE Cost ConsultancyENR QUARTERLY C
121、ONFIDENCE INDEXENR Confidence Surveys Elicit Industry Distress from Construction ExecutivesIndustry Confidence Index44+11 Points54433442021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q14210CONSTRUCTION MARKET ACTIVITY:PIPELINEContractor ConfidenceSource:ABC Construction Confidence Ind
122、ex|ABC,CBRE Cost ConsultancyABC MONTHLY CONFIDENCE INDEXABC Confidence Represents Optimism in Sales,Profits and StaffingAll three categories of the ABC Construction Confidence Index show indications of growth in the market over the next 6 months.The Sales Index is up 2 points,the Staffing Level Inde
123、x is down 2 points,and the Profit and Margin Index is up 2 points,compared to the previous quarter.Ratings above 50 are considered positive.Confidential&Proprietary|2023 CBRE,Inc.666666495352546463596566606061632021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1SalesProfit M
124、arginsStaffing Levels44Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONConsumer Price Index(CPI)Inflation Closing on Historical AverageThe Consumer Price Index(CPI)inflation rate fell to 4.1%lastmonth,down from its 40-year high of 9.1%in June 2022.Thisbrings the CPI inflation rate cl
125、ose to the 40-year U.S.averageof 3.8%.The Federal Open Market Committee(FOMC)is in the finetuning stage of raising interest rates,which could lastanother year.The FOMC is expected to make furtherchanges to borrowing costs in an effort to return inflation tothe targeted 2%range.2023 is Showing a Cont
126、inued Drop in Escalation Compared With the Aggressive Nature of the Past Two Years Upward pressure from sustained construction activity andelevated labor costs have prevented escalation rates fromreturning to their historic averages.It is anticipated that itcould take another year or more to get bac
127、k to those rates.A micro-recession remains a continued possibility.This wouldhasten a drop in escalation and cause significant disruptions tothe construction industry.However,a negative GDP has notbeen witnessed since Q2 of 2020 at the height of the COVID-19 pandemic.Construction EscalationInflation
128、 and Escalation are Slowly Returning to Regular Ranges45Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONUS Inflation RateInflation is a decrease in the purchasing power of money,reflected in a general increase in the prices of goods and services in an economy.In March 2022,the Federa
129、l Open Market Committee(FOMC)increased federal funds rates to influence economic activity and reduce inflationary pressures.It initiated a series of aggressive increases throughout the year until December 2022.Since then,those interest rate increases have continued at a slower rate as inflation has
130、reacted accordingly.As a result of these FOMC rate increases,the USBLS Consumer Price Index dropped to 4.1%in May 2023,which is the lowest it has been in more than two years.Source:US Bureau of Labor StatisticsCPI INFLATION%(YTD)&FFR%FED Rate Increases Have Helped to Decelerate InflationCPI Inflatio
131、n4.1%May 20234.1%5.1%0%1%2%3%4%5%6%7%8%9%10%2021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q1CPI YTD%Federal Funds Rate(%)46Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONConstruction EscalationConstruction Escalation refers to a rise in the price of construction commodities or
132、 services due to a combination of inflation,supply/demand,and other effects such as environmental and engineering changes.The graphs to the right represent the consensus index values from several trusted industry and government sources.Differences in results are caused by monitoring different constr
133、uction components such as labor,material,and overhead or a weighted mix.2023 is expected to have noticeably lower escalation rates than last year,but still higher than the 10-year industry average.Source:Engineering News Record,Rider Levett Bucknall,RS Means,Turner Construction,AC&E,DCD,Mortenson,Co
134、mpass International,US Bureau of Labor StatisticsPAST 10YR.INDUSTRY AVG.VS 2023Indices Offer Various Lower Escalation OpinionsConstruction Escalation+3-5%/yr10-year avg.rangeConstruction Escalation+5-10%/yrAvg.escalation range from 20234.8%5.2%5.7%5.8%3.6%3.4%4.4%3.7%5.6%1.3%1.4%0.6%0.0%3.8%0.0%0.4%
135、3.8%4.2%Turner Construction BCIRLB NCCIMortenson CCIDCDAC&EENR CCIENR BCIRSMEANS HCIBLS PPIFirst 1 Quarter of 2023Past 10 Yr.Avg.4.6%5.6%Past 10 Yr.Industry Avg.2023(E)Industry Avg.47Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONConstruction Escalation by MarketMarket trends behave
136、 differently from city to city.Some cities have more established construction economies,which leads to reduced volatility in construction costs.Others are more susceptible to fluctuations caused by outside pressures.The past three years have been highly eventful.2020 saw a clear slowdown nationwide.
137、2021 represented a rebound for the industry as costs recovered.2022 had hyper-escalation in most markets.Early indicators for 2023 show an escalation slowdown for most markets nationwide,with few exceptions.Source:ENR City Historical Indices|ENR,CBRE Cost ConsultancyENR 20 CITY HISTORICAL CCI YTD(%)
138、A Noticeable Slowdown in Escalation Across the Vast Majority of Markets0%2%4%6%8%10%12%14%16%Atlanta,GABaltimore,MDBirmingham,ALBoston,MAChicago,ILCincinnati,OHCleveland,OHDallas,TXDenver,CODetroit,MIKansas City,MOLos Angeles,CAMinneapolis,MNNew Orleans,LANew York,NYPhiladelphia,PAPittsburgh,PASan F
139、rancisco,CASeattle,WASt.Louis,MO2020202120222023(E)48Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONCBRE Construction IndexThe CBRE Construction Cost Index showed a decline in annual escalation from the previous year.The index forecast that 2023 would begin to return to typical rate
140、s.The index also expects the decline to continue for another year or more,in a controlled,slow-landing approach.Source:CBRE Cost Consultancy Note:(F)is for forecasted valuesCBRE CONSTRUCTION COST INDEX AND COST ESCALATION PER YEAR2023 Projections Show a Long-Waited Decline in EscalationCBRE Index+6.
141、3%(+/-2%)2023 YoY Escalation(Expected)2.9%2.6%2.8%3.2%2.5%3.0%3.1%4.7%3.6%2.7%8.3%10.5%6.3%0%2%4%6%8%10%12%14%16%18%20%406080000002120222023(E)%Incr.Index49Confidential&Proprietary|2023 CBRE,Inc.10CONSTRUCTION ESCALATIONCBRE Construction Index F
142、orecastThere are multiple scenarios that could potentially occur over the next two years.The most probable scenario is a steady linear decline.CBRE expects escalation to slow down to historically typical rates by the end of 2024.The decline of this rate is dependent upon both the Federal Reserve Ban
143、k interest rate changes and the construction market supply and demand cycles.Another possible scenario is a mini-recession across some sectors,which could accelerate the decline of construction cost escalation rates earlier than anticipated.This typically happens in tandem with a disruption to the c
144、onstruction market.Source:CBRE Cost ConsultancyNote:(E)is for Expected and(F)is for Forecasted ValuesCBRE CONSTRUCTION COST INDEX AND QUARTERLY YOY CHANGE2023 and 2024 Could Show a Steady Decline in Cost Escalation0%2%4%6%8%10%12%406080000002220
145、232023(E)2024(F)2025(F)YoY Change(%)IndexIndex Forecast5010CONSTRUCTION ESCALATIONSource:St.Louis FRED,US Bureau of Economic Analysis Note:Dark-grey shows recession periodGDP PERCENT CHANGE FROM PRECEDING QUARTERGross Domestic Product(GDP)MonitorNo Negative GDP So Far.Yet,a Micro Recession is Still
146、a PossibilityRecession is a period of temporary economic decline during which construction activity is reduced,generally identified by a fall in GDP in two successive quarters.CBRE monitors the GDP by identifying declines or quarterly negative values as an indicator for the beginning of a possible r
147、ecession.A negative GDP has not been seen since Q2 2020 at the height of the COVID-19 pandemic.Confidential&Proprietary|2023 CBRE,Inc.-10%-8%-6%-4%-2%0%2%4%6%8%10%2000020202Confidential&Proprietary|2023 CBRE,Inc.10FINAL THOUGHTS&ANALYSISCBRE Findings&Analy
148、sisMaterial It is still recommended to allow for creative substitutionswhere applicable and advisable to help alleviate materialavailability challenges.Supply Chain Suggestions include planning ahead and looking further outto help guarantee project funding and material availabilitywhere possibleLabo
149、r Continue to plan on labor costs remining high withreduced availability.Construction Market Activity Reduced bid competition due to increased backlog and volumecontinues driving up fees and profitability,and in turn overallproject costs.Owners should continue to consider a broader supplier pooland
150、alternative procurement routes.Construction Escalation Escalation is anticipated to remain elevated this year with a returnto“normal”rates by the end of 2024.However,this does not meancosts are anticipated to de-escalate to pre-pandemic levels.Thank youGracias#SalamatAsante ObrigadoTack謝謝O Se Bedank
151、tGrazi?Merci.TeekkrlerDanke DzikujTerima Kasih CBRE 2023 All Rights Reserved.All information included in this proposal pertaining to CBREincluding but not limited to its operations,employees,technology and clientsare proprietary and confidential,and are supplied with the understanding that they will
152、 be held in confidence and not disclosed to third parties without the prior written consent of CBRE.This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only.The parties intend that neither shall have any contractual obli
153、gations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties.The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive le
154、ase/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations,including without limitation any obligation to negotiate in good faith or in any way other than at arms length.Prior to delivery of a definitive executed agreement,and without any liability to the
155、 other party,either party may(1)propose different terms from those summarized herein,(2)enter into negotiations with other parties and/or(3)unilaterally terminate all negotiations with the other party hereto.CBRE and the CBRE logo are service marks of CBRE,Inc.All other marks displayed on this document are the property of their respective owners,and the use of such logos does not imply any affiliation with or endorsement of CBRE.Omar ElSingergy,MSC,MRICSDirector,Cost Consultancy+1 301 919 Dan RichardsonDirector,Cost Consultancy+1 704 604 Claire Ji LeeCost Manager+1 470 418 THE AUTHORS