Thank you for sharing!

Your article was successfully shared with the contacts you provided.

There’s been a “steady return of demand for projects across most sectors of commercial work,” says a new construction outlook report from JLL for the second half of 2021. But that success brings a problem of “above-average increases in construction costs.”

“Through August, average final construction costs for a commercial project had increased 4.5 percent, and total cost growth by year end is likely to surpass 6 percent,” the report reads. “A similar level of cost escalation, in the range of 4 to 7 percent, is expected into 2022,” though the materials component of the estimate is “the lowest confidence forecast due to the wide range of inputs and global supply chains bucketed into a single category.”



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.