HLW Broadcast Report and Cost Index

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


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%


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


*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


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


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%


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


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

[email protected]

www.hlw.com/about/leadership/

John P. Gering

Managing Partner

HLW International LLP

115 Fifth Ave

New York, NY 10003

+1.212.353.4744

[email protected]

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

[email protected]

www.benchmark-ny.com

Andrew Sumner

Director of Cost Consultancy

CBRE

140 Broadway | New York, NY 10005

+1 212 803 6145

[email protected]


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HLW Broadcast Report and Cost Index