Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Investor Presentation (2025)
36 slides from Cushman & Wakefield's investor presentation, 2025
Slide 1: Construction Insights for Global Occupiers
Hl | CUSHMAN & WI WAKEFIELD CONSTRUCTION INSIGHTS FOR GLOBAL OCCUPIERS SUMMER 2025 Better never settles
Slide 2: Contents
CONTENTS O1 ECONOMIC DRIVERS 02 CONSTRUCTION COSTS 03 CONSTRUCTION EMPLOYMENT 04 SECTOR SPOTLIGHTS 05 COUNTRY DEEP DIVE: UNITED STATES Cushman & Wakefield
Slide 3: Introduction
INTRODUCTION During the first half of 2025, the global construction sector faced significant headwinds from multiple fronts. Tariff uncertainty has contributed to elevated material costs, supply challenges, and project delays, leaving firms grappling with several unknowns in their planning processes
Slide 4: Economic Drivers
ECONOMIC DRIVERS
Slide 5: Global Stress Levels Normal
GLOBAL STRESS LEVELS NORMAL For now, but face upward pressure from various factors 150 140 130 120 1lo 100 supply Chain Stress Index 90 80 70 3 2015 2016 2017) 2018 2019 2020 2021 2022 2023 2024 2025 — United States —China ——Latin America — Global (RHS) Source: Federal Reserve Bank of New York Note:
Slide 6: Tariff Uncertainty Looms
TARIFF UNCERTAINTY LOOMS But global inflation has continued to trend downward Consumer Price Index 85 come} RR 5% Q3 2002 Ql 2007 Q4 2007 Q3 2008 Source: The World Bank; Moody's Analytics Cushman & Wakefield Q2 2009 Qi 2010 @4 2010 Q3 2011 Euro Zone —United Kingdom Q4 2022 Q3 2023 Q2 2024 Ql 2025 Q4
Slide 7: Rates Remain Historically High
RATES REMAIN HISTORICALLY HIGH As central banks wait to see the impact of tariffs 6% 5% 4% 3% 2% (% p.a., NSA) 1% 0% -1% Interest Rate: Government Bond Yield - 10 Year, AIBSVYSHSVSIIEENMIIMLEEE EA .gg3 2 Aus THERE 2m ) jo} Soo900C0000C0 RRRKLAKARKAVATAVI GIANG AS SESSTTBISSZGSISCGGSGGSSFGEGS Forecas
Slide 8: Construction Costs
CONSTRUCTION COSTS
Slide 9: Energy and Commodities
ENERGY AND COMMODITIES Energy prices continue to soften 180 160 140 $120 Zz 8 100 i S 80 a 5 Ss 60 = 40 20 ° ypeegrreeanooR eo 5595900505 8HO Sae&RRF8gggagasgga SS53535G58 535 Forecast +——Energy Prices Source: The World Bank; Moody's Analytics Cushman & Wakefield Q3 2021 Ql 2022 Q3 2022 2 Q3 2023 Ql
Slide 10: Energy and Commodities
ENERGY AND COMMODITIES Are expected to continue to decline over the next 12 months mEnergy sCommodities 40% 39% 30% 20% 16% 10% ox Wha Ye = Wha 10% a “ Prices (Percent Change) -11% -16% Qoa YOY Since Q4 2019 1-Year Forecast (Q2 2026) -20% Source: The World Bank; Moody's Analytics Cushman & Wakefield
Slide 11: Construction Costs Vary
CONSTRUCTION COSTS VARY Dampening demand has decelerated cost growth in some regions, while others anticipate an acceleration in prices 35% 30% 25% 20% 15% 10% 5% 0% YOY Change in Construction Costs ‘South Korea Australia United States Source: Moody's Analytics Cushman & Wakefield ‘Germany After sur
Slide 12: Construction Employment
O03 CONSTRUCTION © EMPLOYMENT
Slide 13: Construction Employment
CONSTRUCTION EMPLOYMENT Continues to be a headwind for the industry 5% 3% 1% -1% -3% Construction Employment Growth -5% 7% Australia sQ0Q_ -4.5% YOY = -2.5% “I-YrF 15% B2YrF 3.6% Source: Moody's Analytics Brazil 1.6% 1.3% 4.2% 8.1% Cushman & Wakefield Euro Zone -0.1% 0.7% -0.8% “11% Hong United Kong
Slide 14: Labor Challenges Intensify
LABOR CHALLENGES INTENSIFY Concerns about skill and labor shortages increase in 2025 Cost of Materials Competition Insufficient Demand 0% 10% 20% 30% 40% 50% 60% ™Q12025 mQ42024 mQ3 2024 Source: Royal Institution of Chartered Surveyors (RICS) Q3 2024 Global Construction Monitor Cushman & Wakefield A
Slide 15: Sector Spotlights
SECTOR SPOTLIGHTS
Slide 16: Global Office Pipeline Continues to Contract
GLOBAL OFFICE PIPELINE CONTINUES TO CONTRACT As inventory under construction hits a 10-year low Office Deliveries by Region Under Construction as a % of Inventory 240 35% 220 30% 200 180 25% 160 20% 140 16.1% 120 15% 100 5 10% 3.5% 80 0.7% 60 5% a 40 0% 20 weorne co} je} or fe) a N it S3agG 2015 201
Slide 17: Industrial Construction in APAC Ticks Up
INDUSTRIAL CONSTRUCTION IN APAC TICKS UP With total inventory under construction 29% higher than the three-year average Industrial Deliveries by Region Under Construction as a % of Inventory 1,200 16% 1,000 14% 12% 800 10% 8% 600 6% 5.6% 400 “% 19% 2% 200 15% 0% BH OPN NL2AAOOE a8 ° SRRRARKRKAROQSA
Slide 18: Saturation Slows New Multifamily Development
SATURATION SLOWS NEW MULTIFAMILY DEVELOPMENT While the retail pipeline continues its long-term contraction United States Retail Pipeline 12 Millions 2 8 g a 8 3 6 8 & &§ & & 8S && Bg sg @lBDeliveries —Under Construction as a % of Inventory Source: Cushman & Wakefield Research Cushman & Wakefield 0 =
Slide 19: Country Deep Dive: United States
[MaKe COUNTRY DEEP DIVE UNITED STATES
Slide 20: Construction Costs
CONSTRUCTION COSTS Cushman & Wakefield U.S. construction costs are still rising, driven by tariffs, equipment inflation, and labor shortages. Projects with a heavy reliance on steel and aluminum are feeling the largest impact from tariffs. While national construction cost increases are moderating, u
Slide 21: Tariffs Elevate Material Costs
TARIFFS ELEVATE MATERIAL COSTS With metal intensive projects being the most impacted o x SS SX se xe e y 60% 51.9% 51.3% £ 50% a = 40% & 33.0% & 29.1% 29.8% © 30% 25.4% g 23.6% 218% @ 22.3% E 20% 18.0% cs 10.0% $ 10% e@ fo) = @ oo, 90% 9.8% 116% 0% 35% °° 3.4% 5.0% @ 0.0% 0.5% 0.0% 0.0% @Q4 2024 ©20
Slide 22: Annual Cost Increases Hold Steady
ANNUAL COST INCREASES HOLD STEADY Except for services, which recorded an increase of 5.4% reversing a decline from the prior year In 2021, input prices for nonresidential construction 1-Month YoY Prior Year* % Change rose rapidly, outpacing contractor bids. Firms were % Change % Change % Change Jan-
Slide 23: Commodity Price Growth Accelerates
COMMODITY PRICE GROWTH ACCELERATES Amid increased tariff policy and proposals While the actual implementation of tariffs directly raises input costs for construction-related materials, even the discussion of tariffs have resulted in elevated commodity prices through indirect channels, including: * S
Slide 24: Equipment Prices Continue Upward Trajectory
EQUIPMENT PRICES CONTINUE UPWARD TRAJECTORY With heightened demand amid the data center boom Equipment prices continue to climb, with August 2025 marking a 4.9% annual increase, up from 4% in 2024. Switchgear prices have seen the sharpest rise, up over 17% from two years ago, driven in part by the c
Slide 25: Rising Labor Expenses
RISING LABOR EXPENSES Continue applying upward pressure to overall costs The construction industry continues to face labor challenges, contributing to extended project times and rising costs. Skilled labor costs increased 4.4% over the past year, while wages for common labor rose 3.1%. An aging work
Slide 26: New Construction Starts Increased YOY
NEW CONSTRUCTION STARTS INCREASED YOY Despite softening from June Construction starts rose 3.5% YOY in July 2025, but after June’s substantial gains, they fell 10.2% MOM, reverting to their long-term trend. Despite the broader pullback, nonbuilding construction showed robust growth, advancing 20.4%
Slide 27: Metro-Level Costs Are Still Climbing
METRO-LEVEL COSTS ARE STILL CLIMBING But increases have decelerated Construction cost growth has moderated nationally, according to the Rider Levett Bucknall (RLB) Construction Cost Report. Costs rose just 0.2% from Ql to Q2 2025 and 4.4% YOY, a slowdown from the 5.4% annual increase recorded in 202
Slide 28: Tariff Turbulence Weighing on Executives
TARIFF TURBULENCE WEIGHING ON EXECUTIVES Despite optimism for long term growth The quarterly survey results from ENR, conducted among U.S. executives of leading general contractors, subcontractors and design firms, fell substantially in Q2. Executive confidence dropped to 47, reversing gains from th
Slide 29: Construction employment has been relatively stagnant
Cushman & Wakefield Construction employment has been relatively stagnant in 2025. Hiring activity and employee turnover have slowed as firms grapple with volatile material costs. Many companies are prioritizing labor expense stability and retention. Wage growth remains elevated relative to other sec
Slide 30: Workforce Turnover Stabilizing
WORKFORCE TURNOVER STABILIZING As firms focus on stabilizing labor costs amid murky material prices Construction employment softened in August, declining approximately 0.1% from the prior month. Nonresidential building construction also fell, shedding approximately 3,300 workers. Compared to the pre
Slide 31: Construction Wage Growth Is Moderating
CONSTRUCTION WAGE GROWTH IS MODERATING But may face upward pressure with current U.S. policy on immigration Persistent labor constraints in the construction industry have continued to exert upward pressure on wages. Over the past 12 months, median wage growth in construction and mining has outpaced
Slide 32: Project Timelines
PROJECT TIMELINES Cushman & Wakefield
Slide 33: Project Timelines
PROJECT TIMELINES Equipment lead times EQUIPMENT SIZE WEEKS Equipment lead times have remained stable CRAC Units ‘Small format 8-30 throughout 2025, largely due to the construction CRAC Units Large format 52-40% , - _ Supplemental AC Supplemental AC 16 sector’s adaptation to extended timelines. : Fa
Slide 34: Construction Backlog Continues Climb
CONSTRUCTION BACKLOG CONTINUES CLIMB Amid mixed market signals The Associated Builders and Contractors (ABC) construction backlog for commercial and institutional projects reached 9.2 months in July 2025—approximately seven days longer than the previous month and 0.6 months higher than the same peri
Slide 35: Architectural Billings Bounce Back
ARCHITECTURAL BILLINGS BOUNCE BACK But do not yet signal growth Commercial and industrial architectural billings have rebounded over the past two months, with the Architecture Billings Index (ABI) rising to 49.9 in July—its highest level since August 2023, nearly climbing over the 50 threshold that
Slide 36: Cushman & Wakefield
CUSHMAN & WAKEFIELD TYLER PAYTAS Global Head of GOS Project Management tyler.paytas@cushwake.com CARRIE BOEGEMAN Head of Platform Operations ( GOS Project Management carrie.boegeman@cushwake.com .\ SANDY ROMERO -] Research Manager, Global Research sandy.romero@cushwake.com ETHAN TRIBBLE Research Ana