If you didn’t attend this week’s West region broker breakfast, you missed a great one! Kim Miller from Loberg Construction explained the increased construction costs that the market is experiencing – most of which are tied to labor and materials shortages. This is an important factor to keep in mind when you think of development, adaptive reuse, and even tenant improvements or building out space.
With the election at hand I’ve seen a pause in decision making. Up to now, Industrial properties and suburban apartments have performed well, and in some cases strengthen, while shopping malls and hotels continue to struggle. The holiday season will be critical for retail and hotels, though it is too early to tell how the travel will play out during the holidays due to the rise in Covid-19 cases.