U.S. Construction Costs Continue to Rise
New demands for commercial construction has led to rising costs, a factor that impacts profitability. A recent report from JLL on non-residential construction concludes that raw material and labor costs are making it more expensive to get out of the ground than ever before. GlobeSt.com reports that 2015 will be a big year for new construction. “JLL cites the latest construction forecast from the American Institute of Architects, which projects that spending on non-residential construction will rise 7.7 percent in every commercial property sector this year.” Here’s a loaded question: Will developers create a glut by overbuilding?
