There’s no question construction material shortages and subsequent price increases have created new headwinds for real estate projects in 2021.
But just how much are spikes in steel prices or weeks-long delays in delivery timelines affecting the industry? In some cases, and within specific sectors, quite a bit.
A recent report by Jones Lang Lasalle Inc. (NYSE: JLL) found, through August, average final construction costs for a commercial project had increased 4.5%. Total cost growth by year-end is likely to surpass 6% and, in 2022, cost increases between 4% to 7% are projected.
