hlw broadcast report and cost index
DESCRIPTION
The Changing Content Production Landscape in 2015 was another big year for the content production industry.TRANSCRIPT
2016 BROADCASTREPORT & COST INDEX
The Changing Content Production Landscape in 2015 was another big year for the content production industry. The industry has adjusted its practices, responding to the
realities of a changing media consumption marketplace.
Traditional media, both content production and broadcast,
still leads in supporting the needs of advertisers. However,
the significant expansion of media options that are available
to advertisers has put tremendous pressure on the industry.
In general, traditional broadcasters have embraced new
media. They have done this with methods as varied as
viewer participation in news gathering operations to
advances in the delivery of video on websites. Although
cable networks often resist an ala carte approach, a number
of traditional content producers have embraced OTT, or
over-the-top content. Similarly, aggregators have created
new opportunities for viewing media as the number of
possible linkages continues to increase. It’s also worth
noting that the growth of media consumption on mobile
devices has climbed even faster than the most optimistic (or
pessimistic, depending on your perspective) projections.
The expansion of new media technical infrastructure has
made all of the above possible. Some content producers
have embraced the new delivery systems, because these
systems can meet the needs of advertisers and viewers, as
well as increase audience share. Others are not sure how to
proceed.
The conversion to digital production is done; the new normal
is the HD broadcast.
This new norm is now being pushed by 4K and sometimes
6K production and transmission technologies. 4K has
been broadcast on a limited basis, but the extent of the
large-scale adoption of the format remains unclear. The
reallocation of the wireless spectrum is not yet finalized,
and the broadcast industry remains active in its defense of
its needs, voicing its concerns over the planned, long-term
changes in airwave use.
BROADCAST DATA | FACILITY BENCHMARKING
HLW International LLP © 2015
The Future is Now
HLW International LLP © 2015
Content producers and broadcasters have experienced the hard reality of another year of having to react to near constant change in their industry—change that is driven by technological advances and an evolving marketplace. To adapt in a considered way is to remain competitive.
Change in the past has primarily been driven by technology. Now, with marketplace changes, as well as new demands for increased productivity and efficiency for existing real estate, content producers and broadcasters everywhere are affected by the need to adapt to new workflow. Furthermore, traditional facilities for the industry, especially those dating from the 1960s and 1970s, were built at a time when interior space standards were much less efficient than current requirements. The result is that interior renovations of existing, working facilities will continue to be necessary. In summary, content production facilities managers are being pressured to be as efficient as possible.
Newsrooms are the original “creative workplace.” For many years, newsrooms were the rare work environment where ideas were shared across desks and, when necessary, shouted across the floor. It is increasingly apparent in a range of workplaces that a working style that fosters collaboration and creativity—a dense style of planning—has many merits, and this approach has been adapted in offices around the world.
The successful implementation, though, involves also providing employees with a variety of quiet zones, meeting facilities, and discussion areas. It is noteworthy that this can be accomplished while still reducing space standards.
In the broadcast industry, a move to IP technology has permitted a less restrictive approach to the location of technical rooms, which has freed-up facilities planning to allow for achieving creative adjacencies and, at the same time, the efficient planning of technical spaces. Today’s workplace must support the creative staff in their work. In no way does this new mission prohibit or negatively impact the smart planning of technical infrastructure. It’s a win-win for all concerned.
REGIONALTELEVISION STATION
52,031* USF
MAJOR MARKETTELEVISION STATION
92,611* USF
NETWORKNEWS BUREAU
30,508* USF
15%
3%
6%
16%
27%
33%
15%
4%
7%
10%
41%
22%14%
3%
22%
28%
33%
13%4%
5%
30%22%
26%
14%
9%
8%
28%
26%
15%
BROADCAST59%
BROADCAST38%
BROADCAST52%
FACILITY BENCHMARKING
MEDIA CONTENTPRODUCTION NETWORK
68,960* USF
REGIONALSPORTS NETWORK
51,465* USF
15%
3%
6%
16%
27%
33%
15%
4%
7%
10%
41%
22%14%
3%
22%
28%
33%
13%4%
5%
30%22%
26%
14%
9%
8%
28%
26%
15%BROADCAST40%
BROADCAST36%
KEY
OFFICE SUPPORT
*Circulation distributed DISTRIBUTION
CONTENT PRODUCTION WORKPLACE
PRODUCTION SUPPORT
POST PRODUCTION
BR
OA
DC
AS
T
SPACE TYPE AVG.
BROADCAST 45%WORKPLACE 29%
OFFICE SUPPORT 26%
HLW International LLP © 2015
OTHER FACTORS
Sustainability represents an additional pressure for rethinking existing facility infrastructure in this industry. Content
producers and broadcasters, like other industries, are realizing that the benefits of a sustainable workplace include a
measurably more productive workplace, in addition to the tax incentives and resultant energy efficiencies. The new norm
for the industry is to include sustainable practices, policies, and materials in the design and construction of a broadcast
facility.
Consistent with this environmentally responsible mindset is a desire to seek sustainable approaches regardless of
whether or not the client will pursue formal LEED* certification for the new or upgraded production facility. Current
“green” rating systems are not refined enough for the realities of broadcast facility energy needs. Still, many architectural
and engineering firms are directed by their patrons to adopt an aggressive, proactive strategy for identifying and
implementing sustainably driven design and material decisions. Any added financial burden resulting from the choice to
“go green” can be alleviated by the reduction of long-term operating costs. Moreover, facility owners benefit from the
perceived added value transpiring in the workplace.
Major renovation and new facility projects are at an advantage in the contemporary construction environment, as current
practices take into account “green” costs that are not considered optional. Significant government mandated energy
requirements are already in place for initiatives, such as those involving lighting strategies, many of which mandate the
use of new technologies and approaches. It is possible to clearly demonstrate cost savings by introducing green design
measures during the early phases of a project and by sustaining these efforts with the support of an integrated team
throughout the life of the project—that is in lieu of tacking on individual sustainable measures late in the design process.
* LEED, or Leadership in Energy & Environmental Design, is a green building certification program sponsored by the US Green
Building Council that recognizes best-in-class building strategies and practices. To receive LEED certification, building projects
satisfy prerequisites and earn points to achieve different levels of certification
As widely reported by the US commercial building construction
media, construction costs have increased steadily in recent
months when compared to previous years. As of the writing of
this report, costs have increased approximately 10% - 15% overall
from 2014 to 2015. Although some leveling off is expected,
early indicators show construction costs may increase another
4% - 8% in the coming year. Due to a buoyant construction
economy, we do still expect projects to commence in earnest, as
prices are expected to continue to increase. We expect this to
occur despite the fact that some locations are still experiencing
elevated costs and the markets are only beginning to normalize
after experiencing highs. Because pricing is continually on
the move, the short to medium term outlook suggests cost
advantages in bidding a construction project now rather than
waiting for the market to move higher.
OUTLOOK: 2016
HLW International LLP © 2015
*TABLE 1: Shown here are New York City tri-state area broadcast and media facility renovation construction costs per gross square
foot (GSF) by facility type. Construction Costs are based upon union construction, which typically results in higher quality, on-time
construction and therefore, may be more expensive.
PURPOSE OF THIS REPORT
HLW, together, with supporting data from Benchmark and CBRE, has issued this report to assist anyone involved in
the broadcast and media content production industry in determining probable costs for the creation or alternation
of a content media production facility. The data contained within the report is designed to help with bracketing and
benchmarking probable facility construction and project costs, including design, construction, renovation, and furnishing.
This document is conceived as a benchmarking tool and is, therefore, not designed to replace a detailed cost estimate
prepared during the course of a specific project. Rather, this document is intended to help you set a target and
subsequently measure progress.
METHODOLOGY
We have employed a broad, multifaceted approach in generating the forecasts contained within this report. The
methodology for developing the updated costs by facility type involved the following components.
In-house cost indices from broadcast media project experience
Analysis of contractor bids
Review of nationally published cost data
Review and analysis of labor rates and productivity
All costs are given in Usable Square Feet (USF), defined as the actual enclosed interior space required to house the
project or function. Rentable Square Feet (RSF) varies according to the location or city.
Accounting for future market fluctuations is critical when benchmarking. It’s important to allow for escalation
contingency. The economic data shows that in the last twelve months preceding July 2015, costs have escalated
approximately 4.3% in New York City and at an average of 2.3% nationally. The benchmarks shown in this document are
derived from current market pricing. Therefore, this data suggests that we can conservatively project these benchmarks
into future years and guard against labor and material escalation. For example, if your project is due to start in eight
months and in New York City, take 4.3%, divide by 12 (months), and multiply by 8 (months). This is the factor that should
be added to account for future cost increases.
2016 Broadcast & Media Production Facility Construction
COST OUTLOOK
$250 - $300
FACILITY TYPE
1. NEWS OR SPORTS-ORIENTED PRODUCTION AND BROADCAST FACILITY (SMALL SINGLE HEIGHT STUDIO)
YEAR 2016 RENOVATION
CONSTRUCTION COST per GSF ranges
2. NEWS OR SPORTS-ORIENTED PRODUCTION AND BROADCAST FACILITY (LARGE DOUBLE HEIGHT STUDIO)
4. MASTER CONTROL/NETWORK RELEASE FACILITY
3. VIDEO & AUDIO PRODUCTION FACILITY (NO LIVE OUT)
$280 - $325
$300 - $350
$350 - $400
2016 Broadcast & Media Production Facility Construction
TABLE 1: BROADCAST DATA COST BENCHMARKING
Assumes studio height is available within exsisting building
Assumes studio height is created by removing or expanding structural condition of site
Assumes only minimal UPS for shutdown and no back-up power/generator
Cost for entire facility not just room type
HLW International LLP © 2015
Construction Cost Ground RulesCONSTRUCTION COSTS All hard construction. As a test, imagine raising your building into the air and turning it upside down. Whatever
components don’t fall out (or rattle around within the building) are considered part of the hard construction cost.
For the purposes of this report, when a broadcast and media production building is considered, construction costs also
include the following aspects of a building.
• Walls and isolated wall assemblies
• Doors and acoustic doors
• Acoustic isolation and treatments systems
• Ceilings and isolated ceiling assemblies
• Mechanical systems and redundancy requirements
• Electrical power and distribution systems: service side transformers, backup generators, grounding
systems, and UPS, PDU, and ATS systems
• Plumbing systems
• Fire protection systems: sprinklers and sprinkler booster pumps, pre-action systems, and clean agent
systems
• Architectural lighting
• Broadcast lighting: grids, trusses, transformers, and DMX cabling and circuiting (but dimmer systems and
racks do not apply)
• Long span construction to create studios and other double height spaces
• Raised and accessible floor systems
• Pathways, conduits, cable trays, and termination panels for broadcast, IT, and telecom systems are included.
However, the actual cabling, racks, rack gear, servers, local interface devices, control surfaces, and computers
are not included.
• Building management and automation systems
• Basic building commissioning
• Pantries or non cooking cafe; no cooking or kitchen/servery space
General Contractor’s overhead/profit or construction manager’s fee/general conditions.
Finally, it is also customary and prudent to include a design contingency in the construction cost.
$140 PER SQUARE FOOT AND UP• Custom carpet
• (material cost $40-$50/square yard )
• Carpet tiles
• Custom Millwork
• Detailed drywall construction
• Sheetrock or acoustical ceilings with soffit and
fascias
• Custom doors and frames with sidelights
• Extensive array of lighting fixtures
• High End architectural finishes
$100 - $120 PER SQUARE FOOT
• Carpet (material cost $20/square yard)
• VCT Flooring, vinyl base, ceramic tile
• No minimal millwork
• (plastic laminate finish)
• Basic drywall construction
• Standard 2ft x 2ft acoustical ceilings
• Standard hollow metal doors and frames
• Minimal lighting
• (2ft x 2ft, 2ft x 4ft or high hats)
• Minimal architectural finishes
• Standard paint finished
• Basic wall covering
• No exposed duct work
• No exposed structural elements
• No interconnecting stairs
• No slab openings
• Standard pantry appliances
• Specialized paint finishes
• Custom wall covering
• Exposed Duct work (round, oval)
• Exposed structural elements
• Interconnecting staircase
• Slab penetrations
• Ornamental metal
• Architectural glass
• Access Floor
What do you get for interior spaces per square foot
HLW International LLP © 2015
MAJOR PURCHASED ITEMS The following major purchased items are not included in the construction costs.
• General furniture. Items, such as desks, workstations, chairs, conference room furniture, furniture for common or break
areas, file cabinets, coat hooks, artwork, etc., are considered “general furniture.” In addition, we consider items generally
referred to as “FF&E,” or furniture, fixtures and equipment.
• Broadcast, IT, Telecom, and computer cabling
• Telephone system, paging, and security systems
• Desktop office computers
• Broadcast technical equipment: racks, rack gear, servers, local interface devices or control surfaces, consoles, and
computers
• Broadcast lighting systems, including dimmer panels or racks and lighting instruments
• Audio visual equipment
• Moveable or benchtop testing and repair equipment
• ENG or microwave communication equipment
• Set construction or installation
• Antennas, antenna design and surveys, and satellite dish equipment
• Signage
• Artwork
• Expanded or extended commissioning
The Total Built Area
Construction cost measures are based on gross square feet, which constitutes the total built area. Net, or usable area, is
only a portion of what you are building.
TOTAL PROJECT COSTS Total project costs include the sum of all of the costs necessary for an owner or client to build a project. These additional
non-hard construction costs (listed below) are referred to as “soft costs.” The predictable range of soft costs includes the
following items.
• Architectural and engineering design service fees
Other consultant fees
• Project Manager fees
• Set design fees
• Broadcast technical design and integration fees
• FF&E (see items listed under “Major Purchased Items”)
• Construction Manager fees (if part of the project)
• Construction change orders and owner’s contingency
• Legal fees
• Permits and filing fees
The unpredictable range of project soft costs can include land costs, financing costs, moving costs, and relocation
and/or business interruption costs associated with renovations. Together, these expenses could far exceed the cost of
construction. Be advised that these costs are not under the control of the consultants or construction professionals, hence,
the lack of predictability.
CONSTRUCTION COSTS AND PREDICTABLE OVERALL PROJECT COSTS• New construction, excluding land and financing, ≈70% – 80% of project costs
• Renovation construction cost ≈ 65% – 75% of project cost.
21+18+4+5+4+7+5+7+7+4+4+9+5STRUCTURAL
$5-$7
PARTITIONS/DOORS$15-$21
WINDOW TREATMENTS $2-$3
PAINT/WALL COVERINGS
$4-$5
MILLWORK$12-$16
CARPET/ FLOORING
$12-$16
ACOUSTICAL TREATMENT
$5-$7CEILINGS
$10-$14 SPRINKLER $5-$7
PLUMBING $4-$5
HVAC$39-$53
ELECTRICAL$50-$68
LIGHTING GRID $4-$5
RULES OF THUMB FOR GENERAL TECHNICAL INTERIOR CONSTRUCTION
13+8+3+3+11+19+15+1+2+1+4+2+4+4+1+1+6+2STRUCTURAL
2%PARTITIONS/DOORS6%WINDOW TREATMENTS
1%PAINT/WALL COVERINGS 1%MILLWORK
4%CARPET/
FLOORING4%
ACOUSTICAL TREATMENT
2%
CARPENTRY (CEILINGS) 7%
SPRINKLER 2%
PLUMBING 1%
HVAC15%
ELECTRICAL19%
FURNITURE13%
ARCHITECTURE 3%
PROFESSIONAL FEES8%
MISC. FEES, PERMITS3%
IT/AV BUDGET11%
LIGHTING GRID 2%
Hard Costs 63%
Soft Costs37%
HLW International LLP © 2015
NEWS ROOMS CONTROL ROOMS
Windowed offices Open Plan
Electronic Library and condensed filing 30% technology
70% Office Secure entry
24/7 operations
Increased electric Increased HVAC
Specific electrical re-quirements
24/7 operation requiring supplemental air access
24 hour AC floor
Perimeter core for maximum open space
interior offices High floor-to-floor
height Maximum load
capacity24/7 operation
Accommodation access floor
Increased structural capacities
Accommodate access floor
Adequate power
$250 + $300+
$275 + $325+
$300 + $350 +
WH
AT
AR
E T
HE
SE
F
INIS
HE
D S
PAC
ES
T
YP
ICA
LLY
LIK
E?
TY
PE
OF
BU
ILD
ING
O
R S
PAC
E N
EE
DE
D
TY
PE
S O
F S
PAC
ES
IN
TE
RIO
R C
ON
ST
RU
CT
ION
C
OS
T P
ER
SQ
UA
RE
FO
OT
BA
SIC
EN
HA
NC
ED
HIG
H E
ND
STUDIOS EDIT ROOMS RACK ROOM/ C&R
Windowless ewnvironment
High floor-ceiling height
High level of acoustic control
24 hour AC
Some acoustic control
Sliding glass doorscontrolled colors
Enter room on access floor
seperate AC from other areas
Back up power
Large, open column free space
Level floor slabs Height ceiling/slabsHeavier structural
capacity
Enhanced office type space
Heavy floor loadingGenerous floor to
floor heightAbility to install
backup door sources
$500 + $180 + $700 +
$600+ $190+ $750+
$700 + $200 + $800 +
TABLE 2: Broadcast Facility Construction guidelines according to type of space HLW International LLP © 2015
9825
9875
9925
9975
10025
10075
15550
15750
15950
16150
16350
16550
16750
16950
17150
July-14
August-14
September-14
October-14
Novem
ber-14
December-14
January-15
February-15
March-15
April-15
May-15
June-15
July-15
ENR
CCI I
ndex
-N
atio
nal
ENR
CCI I
ndex
-N
Y O
nly
Construction Cost Escalation July 14- July 15
New York
National
Linear (New York)
Linear (National)
New York CCI Index - 4.37% IncreaseNational CCI Index - 2.05% Increase
Denver 0.75
Dallas 0.65
New York 1.00
DC 0.74
Chicago 0.89San Francisco 0.95
LA 0.81
New Orleans 0.66
Miami 0.67
Philadelphia 0.87
Boston 0.90
Seattle 0.79
OUTLOOK BY LOCATIONLocal market conditions vary. Local conditions tend to be uneven, but the underlying market pressures, e.g., increased prices
for commodities, steel, and cement due to global demand, will result in price increases irrespective of the local markets. Costs
are going up nationally.
CONSTRUCTION COST ESCALATION JULY 2014- JULY 2015
LOCATIONS
Denver 0.75
Dallas 0.65
New York 1.00
DC 0.74
Chicago 0.89San Francisco 0.95
LA 0.81
New Orleans 0.66
Miami 0.67
Philadelphia 0.87
Boston 0.90
Seattle 0.79
MAJOR CONCLUSIONThe most influential cost driver in 2016 will be decreased competiveness due to
market pressures in local markets. In general, costs can be expected to increase
4% - 8% on the East and West Coasts and 3% - 5% mostly everywhere else (over
2015 levels).
Basic Cost Ranges for Technical Space
BASED ON 2015 RENOVATION CONSTRUCTION $/USF RANGES
NEWS/SPORTS ORIENTED PRODUCTION
AND BROADCAST FACILITY (SMALL STUDIO) $280-$325
NEWS/SPORTS ORIENTED PRODUCTION
AND BROADCAST FACILITY (LARGE STUDIO) $325-$350
RACK ROOM/CENTRAL EQUIPMENT ROOM $700- $800
MASTER CONTROL/NETWORK RELEASE FACILITY $350-$400
VIDEO & AUDIO PRODUCTION FACILITY (NO LIVE OUT) $250-$300
POST PRODUCTION FACILITIES
The following facilities are part of a larger building or facility, representing only a part of the full building cost.
• POST PRODUCTION EDIT FACILITY $180-$200
• POST PRODUCTION AUDIO FACILITY $250-$300
• NEWS PRODUCTION $180-$200
RADIO PRODUCTION & CONTROL FACILITY $375-$450
BRANDED GROUND LEVEL DISPLAY STUDIO $625-$875
HLW International LLP © 2015
Written by Keith Hanadel, Principal & Director of Broadcasting Design and John Gering, Managing Director of HLW
International LLP, with research by Fred Sacramone of Benchmark Builders Inc. and Andrew Sumner of CBRE Project
Management.
HLW International, a 130-year-old design firm with practices in architecture, interior design, engineering, planning, and
consulting, collaborated with Benchmark Builders and CBRE Project Management to develop a “Content Production Facility
Construction Cost Index.” This index has been created to assist decision-makers as they plan for the future. The index is an
efficient tool for the assessment of cost options for facility changes under consideration.
The index takes into account the typical characteristics of the type of space needed, the level of infrastructure required,
the estimated costs of individual components in the space, and what materials can be provided within various cost ranges.
A serious of companion charts have been developed to guide broadcasters and production facility professional in the
preparation of budgets as this work is considered.
CONTACT FOR ADDITIONAL INFORMATION
Keith Hanadel
Broadcast Design Director
HLW International LLP
115 Fifth Ave
New York, NY 10003
+1.212.353.4946
www.hlw.com/about/leadership/
John P. Gering
Managing Partner
HLW International LLP
115 Fifth Ave
New York, NY 10003
+1.212.353.4744
www.hlw.com/about/leadership/
Fred Sacramone
Principal
Benchmark Builders, Inc.
237 West 35th Street, Suite 901
New York, NY 10001
+1.212.766.8800
www.benchmark-ny.com
Andrew Sumner
Director of Cost Consultancy
CBRE
140 Broadway | New York, NY 10005
+1 212 803 6145
HLW International LLP © 2015
Space is a business tool. Make your space work for you.
NEW YORK
NEW JERSEY
LOS ANGELES
LONDON
SHANGHAI