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What Are Construction Hard Costs?
In commercial real estate development, your expenses will fall into two categories; construction soft costs and construction hard costs. Soft costs are related to predevelopment, like purchasing land, hiring architects, and paying inspection fees. By contrast, hard construction costs are directly related to the physical construction of a building.
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Commercial Real Estate’s Most Critical Issue: A Labor Shortage
Commercial real estate executives have a lot to worry about these days. Inflation and rising interest rates, continued supply chain challenges and an unstable geopolitical environment have all but ensured a restless night’s sleep, but in the last 12 months, a new challenge has emerged to trump them all: a labor shortage.
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How the Inflation Reduction Act Impacts Real Estate Developers
In mid-August, Pres. Joe Biden signed the Inflation Reduction Act (IRA) of 2022 into law, which aims to significantly reduce the United States’ carbon footprint, cut prescription drug prices, and curb inflation. The $430 billion legislation includes provisions designed to bolster green building projects and energy-efficient renovations via major tax incentives.
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These are the Best Markets for Office Building Development
Over the last two years, U.S. companies have had their teams work remotely during the coronavirus pandemic. But with the Centers for Disease Control and Prevention recently recommending an end to quarantine and social distance mandates, firms have been eager to bring their employees back to the office. However, many staffers based in major cities…
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How to Speed Up Real Estate Development Reporting
Reporting is an essential part of real estate development but also a source of frustration. Drafting draw request packages for complex projects can involve hundreds of thousands of documents, and gathering that information is very labor-intensive. Then there’s all the manual work involved with inputting bid, invoice, and change order data from countless emails onto…
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3 Ways Owner’s Rep Leaders Can Position their Firm as an Industry Frontrunner
Becoming an industry leader in the commercial real estate development space is challenging because it is a highly competitive and capital-intensive field. And with the United States on the brink of a recession, that goal is even more elusive as lenders face increased federal government scrutiny and buyers feel pressure to pull out of deals amid rising…
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Is the Life Sciences Real Estate Boom Over?
The looming U.S recession has cast a pall over the commercial real estate market, with sales tumbling by 16% year-over-year in April. The Economist explained that investors’ enthusiasm for offices, hotels, apartment complexes, and warehouses has diminished as debt costs have risen and household budgets have fallen. In addition, 53% of employees are hesitant about…
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Industrial Developers Are Suddenly Facing Headwinds
Over the last decade, the industrial sector has become the most dominant force in the commercial real estate market. Long before the pandemic, the asset class was crowned the industry’s darling, and since the pandemic, user demand and investor appetite have intensified, resulting in an unprecedented level of growth. For the last decade, the market…
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Two Multifamily Development Trends to Watch for the Rest of 2022
According to GlobeSt, multifamily construction is at its highest level in 40 years, with over 800k projects underway and 450k projects set to be completed this year.