The country’s commercial real estate market is finally recovering from the massive global recession. Unfortunately, favorable development comes at a price for commercial land owners.
Construction Costs Are on the Rise
According to a Puget Sound Business Journal article, construction costs are rising in many parts of the U.S. Puget Sound in particular, is experiencing a 5 percent increase in cost to build office buildings, apartment high-rises, and other huge commercial projects compared to last year. The costs are expected to increase by as much as 6 percent more in the following months.
General contractor Mortenson Development Inc. released a quarterly construction index report showing that the rising cost of commercial construction in the Puget Sound region is outperforming other Mortenson markets including Phoenix, Minneapolis, Milwaukee, Denver, and Chicago. The company said that this has been the consistent trend for the last four quarters.