CBRE reported this week that it forecasts an increase in construction costs of 14.1% that likely will be the largest in several years, though relief might be on the horizon.
Developers point to higher labor costs and the supply chain as major culprits. They are sometimes forced to adjust projects and hope the subcontractor pool expands. Some say client and supply provider communication is critical to working through challenges.
The projected increase this year exceeds last year's 11.5 percent rise and well outpaces the historical average gain of 2 percent to 4 percent per year. The anticipated 2022 gain is the largest since CBRE began tracking cost projections in 2007.
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