US Construction Costs to Keep Rising

CHICAGO—The economic clouds may be lifting, and construction cranes have appeared over the skylines of many cities, but the increasing demand for new commercial construction has also led to rising costs, making profitability tricky in the coming years, according to a new JLL report on US non-residential construction.

“Raw material and labor costs are making it more expensive to get out of the ground than ever before,” Todd Burns, president, JLL project and development services, Americas, tells GlobeSt.com. “You have to consider the bottom line of every project to make sure it makes economic sense short- and long-term.” But since labor costs should keep rising for several years, JLL frequently advises clients to “get projects in the ground now instead of waiting.”