The tale of lumber prices up to a record pinnacle in May, back down to normal in August, and now futures again over $1,000 per thousand board feet, has been a compelling story in commercial real estate.
But wood isn't the only commodity that could prove an expensive challenge to development and construction. Many other products have been riding up.
The producer price index for fabricated structural iron and steel for industrial buildings has been on an upward streak, according to Bureau of Labor Statistic data pulled together by the Federal Reserve Bank of St. Louis. The PPI is up 35% year over year and is still on an upward slope, which means costs to builders will be as well. Prefabricated metal buildings and components from steel and iron, almost 44%.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
