NewsThe national average increase in construction costs for the third quarter was 1.07 percent, marking the lowest rise in the past three years. Farrell Fritz partner David Curry was featured in Commercial Property Executive, where he shared insights on the current state of construction in the commercial real estate market.
From the article:
David Curry, real estate partner at Farrell Fritz in New York City, told CPE that since the pandemic began, real estate development has been hampered by a lethal combination of exponential increases in the cost of materials and high interest rates resulting from an alarming rise in inflation.
“High land prices create an additional roadblock depending on the area in which a project is planned. These factors have led to the stoppage and cancellation of many meaningful projects,” Curry said.
“We are finally seeing a leveling of prices of materials in construction from their unsustainable pandemic surges, including steel and concrete, as well as a decrease in the price of some raw materials, such as lumber. This is a meaningful start to the recovery needed to jumpstart projects sidelined by unsustainable price increases and interest rates. Continuing these price trends and reductions in interest rates will be key to boosting the economy and getting the cranes back in the air.”
Read more on Commercial Property Executive here:
Construction Cost Increases Hit 3-Year Low – Commercial Property Executive (commercialsearch.com)